Who is most important financial manager or director of auditors?

We cannot simply say which one is more important as both of them have their own significance. 

It would be difficult to say that which one is important in organisation. AS both have their own significances and both will play the role of backbone in any organization.

Financial managers are responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization.Financial managers typically do the following:

• Prepare financial statements, business activity reports, and forecasts
• Monitor financial details to ensure that legal requirements are met
• Supervise employees who do financial reporting and budgeting
• Review company financial reports and seek ways to reduce costs
• Analyze market trends to maximize profits and find expansion opportunities
• Help management make financial decisions

As part of the audit team, the Director will be responsible for:

• Directing and driving the success of multiple engagements.
• Attracting, developing, and retaining top talent.
• Keeping lines of communication open with staff and clients.
• Ability to manage within budgetary and time constraints while providing a high-level of client satisfaction
• Anticipating and addressing client concerns and escalating problems as they arise.
• Initiating ''cross selling'' business to other practices.
• Promoting new ideas and business solutions that result in extended services to existing clients
• Keeping abreast of latest developments as they affect GAAP and the Firm’s standards and policies
• Developing an understanding of client’s business and becoming a ''functional expert'' in the area.
• Promoting new ideas and business solutions that result in extended services to existing clients.
• Work to expand client base and supports business development activities.

So both wheather it is the finanacial manager or the audit director both have their special significance and important in their orgaqnization.

 

There is a big difference.

Basically, Financial manager entails how the company obtain its financial resources, allocate, and making sure that the shareholder's value is maximized from time to time.

 

Auditor on the other hand, is the examination of financial records /statements of the company so as to determine whether they are true and fair enough to be used by the shareholders/public in decision making. Thanks

 

It depends on the context and the basis of valuation to each role In broad definitions financial managers function are more operational in nature, On the other hand auditors are more of judgemental and investigative nature I.e. if the finance manager was a minister in the government, director of auditors will be the Congress committee that supervise his work.

Both  of them have a significant role to play in the organization?

In my point of view the most important is financial manager

 

They Both have significant Roles in their own Capacities which are clearly regarded as Non-trivial 

 

Finance Manager: He liaise with auditors to provide timely and accurate information as required by them necessary for conducting audits. The information ,not necessarily be the one which is internally produced as part of routine control procedures but could be the one from external sources, like any third parties involved for e.g. Banks.

 

Most importantly he is responsible for resolving audit issues and queries with regards to financial Accounting/reporting, compliance with laws and regulations and operating effectiveness of financial internal controls.

 

Last but not the least, he bridges up between auditors and higher management like CFO / Director finance to bring up any necessary issues which require strong  technical advice or which involves critical decision making at the entity level. 

 

Directors:

             

For appropriate response : I will distinguish between executive and Non- executive directors: 

 

For Executive directors: Executive directors are involved in management. So , in addition to what has been mentioned above , Important and critical audit issues will be brought into their attention by managers or by auditors themselves ( If access authorized) and appropriate actions will be taken after the advice has been sought from them.

 

For Non - Executive Directors: 

 

 Non- E.D(s) are not involved in management. But what distinguishes them from mangers and E.D(s) is that, inevitably, they make a strong bond with auditors , as they are the ones, who are a gateway for them to the board level (If voice not heard at the management level) for raising any concerns related to the overall audit engagement. for e.g. , credibility of management in making financial reports, availability of data (Was the information timely available) , ethical issues related to audit engagements and  issues related to fee. it is appropriate to say that they can be bothered or contacted for anything which sets out or defines "Rules of Engagements"

both of them are important while financials manager responsible of implement applied the  and polices and rule and providers to prepare full set of complete record of account translation in main journals and subsidiaries to prepare financial reports income statement and financial statement beside other reports  required by responsible to make sure all the polices and procedures are applied  correctly and all the records are recorded correctly and  the procedures are adhered  and shown in financial stamens prepared by director of finance so both of them completed each other to give mostly trusty in final financial stamen's  for all users of financial stamens, so you  can give priority to financial director  as the key of the  task of implementing the basis  and  polices and procedures of preparing  set of financial  statement  for some extent. controls    . 

Each one play an important role in the financial proccess as follow:

-financial manager who has the final dicision about all financial issues which needed to the daily activities for the company like AR , AB , Treasury , Collection , Payments , Inventory , financial statement and provide financial report for CFO.

Director of auditors : they report to CFO and board of director to assure that all procedures and instruction of work matching with the code of conduct for the company and external report prepared based on international measurments and matching with local gvernment law.