Introduction:
An auditor is a person who examines the financial records of an organization and provides an opinion on the accuracy and completeness of the financial statements. The role of an auditor is often compared to that of a watchdog or a bloodhound. This article explains the meaning of the statement "an auditor is a watchdog and not a bloodhound" and illustrates it.

Watchdog vs Bloodhound:
A watchdog is a term used to describe someone who keeps a close eye on things to ensure that they are functioning properly. A bloodhound, on the other hand, is a term used to describe someone who is relentless in their pursuit of something. In auditing, these two terms have different meanings.

Watchdog:
An auditor is considered a watchdog because their primary role is to ensure that an organization's financial statements are accurate and complete. They review the financial records of the organization and provide an opinion on whether the financial statements present a true and fair view of the organization's financial position.

Illustration:
For example, an auditor might review the bank statements of an organization to ensure that all transactions have been properly recorded and that there are no unexplained discrepancies. They might also review the organization's inventory records to ensure that the value of the inventory is accurately reflected in the financial statements.

Bloodhound:
A bloodhound, on the other hand, is someone who is relentless in their pursuit of something. In auditing, this term is often used to describe an auditor who is looking for fraud or other irregularities in an organization's financial records.

Illustration:
For example, an auditor might review the organization's expense reports to ensure that there are no fraudulent or unauthorized expenses. They might also review the organization's payroll records to ensure that employees are being paid correctly and that there are no discrepancies in the hours worked.

Conclusion:
In conclusion, the statement "an auditor is a watchdog and not a bloodhound" means that an auditor's role is to ensure that an organization's financial statements are accurate and complete, rather than to actively search for fraud or other irregularities. While auditors may uncover irregularities during the course of their work, their primary role is to provide an opinion on the accuracy and completeness of the financial statements.