Professions and Manpower Related to Financial Sectors

Introduction:

Every private or public organization related to production, distribution or service sectors, like education, medicine, etc involve in financial transaction. Buying and Selling of goods, manufacturing things, distribution of wages and other daily expenses need money to spend. Financial activities are carried out in every organization.
Financial management is one of the major areas of finance sector. To manage finance, one needs to make planning and the plans should be implemented properly. Any of the financial activities should not be left without their proper supervision. Generally, there are accountant for accounting financial transactions, auditor for auditing/checking and the manager to see the managerial aspect in an organization.

Manpower related to Financial Sectors:

1. Financial Manager

All the offices or organizations should manage every resources. In addition to this they should mobilize the resources with an efficient functioning of the administration and economic activities.The total responsibility of handling of the office or organization is related to the manager. The manager, therefore, should maintain regularity according to the responsibilities assigned to him/her. His/her main job is to manage the office and provide services to the clients faster and more accessible way. The manager can also control, keep check and balance of the business in order to regulate finance in the office.

2. Accountant

An accountant is a person who records business transactions on behalf of an organization, reports on company performance to management, and issues financial statements. Here are several examples of the types of transactions in which an accountant may become involved:

• Issuing an invoice to a customer, which involves recording a sale and account receivable.

• Receiving an invoice from a supplier, which involves recording an expense or asset and an account payable.

• Issuing a salary or wage payment to an employee, which involves recording an expense and the outflow of cash.

• Reconciling a bank statement, which likely produces adjustments to the cash account.

3. Auditor

Auditing is a process of examining or checking accounting system and management of any office whether it has functioned according to the rules and regulations. A person who has got an authority to assess accounting system of any organization, firm or office is auditor. Thus, an auditor can also check the daily activities recorded by the accountant.

Accountant: 

A person who keeps the record of all the financial transactions of a firm in a systemic and scientific way is known as accountant.

Financial Transaction: 

The activities related to money is called financial transaction.

#Auditing: The act of examining the book of account by an auditor is called auditing. Auditing can be done in two ways; a) Internal Audit and (b) External Audit/Final Audit.

#Internal Audit: An act of checking the books of accounts internally by the internal auditor of an office is known as internal audit.

#External Audit: An act of checking the books of accounts of an office at the financial year by an independent body or person is known as final audit.

#Difference between Internal audit and external audit:

Sn	Internal Audit	External Audit
1	It is carried on by the staff of the organization.	It is carried out by the independent qualified auditor.
2	It can be done at any time.	It is done at the end of accounting year.
3	It simplifies the final audit.	It helps tax authorities and legal bodies.

Q3)What is auditing? Differentiate between Auditor and finance manager.

Ans: Auditing is an act of examine the books of account.
The following are the difference between Auditor and Finance manager;

Sn	Auditor	Finance Manager
1	Examine the books of account.	Manages & operate the administrative or economic utility in an effective way.
2	Submits a report with its advice on the basis of examined document and evidence to the management committee.	services in an continuous, regular and ruled governed way.