12. Necessity of familiarity with the business on the part of the auditor.—Whether or not the auditor should be familiar with the particular type of business depends largely upon circumstances. While it is al ways advisable to secure the services of an auditor who is particularly qualified by experience in the client's line of business, it must be borne in mind that the principles of the science of accounting are the same in all businesses. Unfamiliarity with the line of business will not necessarily impair the value of the services of an auditor who may be inexperienced in the particular line; On the other hand, in special types of audits, it would be unwise to trust the en gagement to one who has had no previous experience in that line of work; such, for example, a stock broker age audit—which is a special type of work and which requires a man versed in the brokerage business.
The matter is one that cannot be decided offhand. In the majority of cases, it will make no particular difference whether the auditor has had experience in the particular line or not; lack of experience does not necessarily preclude his rendering efficient service for his client. An auditor who is thoroly competent and who has received the proper training will soon make himself familiar with the intricacies of the par ticular business in which his services are required.
13. Summary of the auditor's functions.—It will be seen that there are numerous occasions for auditing and numerous advantages to be obtained from the services of a competent auditor. It is also evident that the scope of the auditor's activity is wide., No prudent business man would think of neglecting to make a proper provision for fire insurance, liability insurance, or burglary insurance. Yet many busi ness men will fail to realize how vitally important it is to have their accounts properly reviewed. It is often true that a thoro audit will disclose no er rors, either of commission or omission, and no tangible advantage from an audit may be apparerit. Never theless, the expense of taking this additional precau tion is so small in comparison with the loss that might otherwise result, and furthermore, the moral effect upon those employes who are placed in responsible positions is so excellent, that it is the part of wisdom for the business man to employ a competent auditor.