An auditor is one who is accredited with the right to assess, evaluate and validate the accuracy of commercial accounts of the parent organisation and one who guarantees the organisation’s compliance with tax regulations. Auditors evaluate the financial actions of the company that employs them and make certain of the smooth running of the organisation. Auditors are economic specialists who analyse commercial accounts for precision and scrupulousness. They are mostly employed by industries or autonomous establishments to execute internal and external audits.
There are majorly two types of auditors which internal auditors and external auditors. Internal auditors mostly work for the government or independent industries and their job is to check for mishandling of funds and look for a way to diminish the misappropriation and embezzlement of resources. The major objectives of this type of auditor are to improve the profit margin of the parent company, reduce the loss of funds made by the company and set up more recurrent sweeps of resources into profit bearing financial statement. They monitor incomes and expenses made by the firm and make resourceful commendations for the board of directors. While external auditors are autonomous freelancers who concentrate on the equality of an establishment’s monetary report and ensuring it correctly mirrors the corporation’s financial status quo. Certain external auditors offer tax and consulting services to entities, businesses, government groups or organisations. Auditors are educated to recognise impending threats and recommend precautionary actions. The role of auditors as counsellors, both internally and externally, is fixated on providing unbiased valuations and knowledgeable estimations about how current practices and actions might be developed. Generally, the goals of an auditor include increased operational productivity, risk controlling and supervisory compliance.
What is expected of an auditor may vary from organisation to organisation but some of the major roles an auditor play in any organisation includes;
At the conclusion of an audit, the auditor may also propose objective guidance for improving financial reporting and internal controls to make the most of the firm’s performance and productivity.
There are numerous skills an auditor should possess in order to be successful some of which include;
The minimum educational requirement for many auditing jobs is a bachelor’s degree in any business related course such as business administration, accountancy, and commerce. Nevertheless, major employers may request for nothing less than a master’s degree in the same field. Professional certificates are a big deal when it comes to the job of an auditor and most top auditors or individuals who work in large firms should have at least one of them. Some of these certifications include certified public accountancy, certified quality auditor and certified financial services, auditor. After graduation, the first step on a career path may be employed as a junior internal auditor.
Auditors can earn professional qualifications from industrial establishments such as ISACA formerly known as the Information Systems Audit and Control Association, and the Institute of Internal Auditors (IIA). The certifications cover disciplines such as government auditing, information systems, and financial services. In some instances, auditors can move into the related field of management accounting, the BLS notes. After gaining experience and earning professional certification, auditors can move up a firm’s ranks to positions such as financial officer, chief financial officer or comptroller.
The average salary for an auditor in the United States is about $50,000, but the range usually falls between $49,000 and $60,000. Salary variations can differ generally depending on many significant elements such as the educational background of an individual, certifications, additional skills, and the number of years one has spent being an auditor.
The BLS estimated that auditors would experience an average of 11% increase job rate in the United States from 2014-2024 which is much faster than usual for any occupation. As a result, one is most likely to come in contact with favourable job opportunities, especially if he or she possesses the necessary professional certification. This growth is due to new financial laws and guideline modifications, an increased demand for administrative responsibility and globalisation. Job opportunities should be favourable. Auditors who have earned professional acknowledgement through qualifications or other designation, especially a CPA, should have the best job prospects. Applicants with a master’s degree in accounting or a master’s degree in business administration with a concentration in accounting also may have a slight advantage. Individuals who are talented in auditing computer software and information systems or have expertise in specific areas such as global trade, intercontinental economic reporting standards, or current legislation may have an advantage in getting some auditing jobs. In addition, employers increasingly seek applicants with strong interpersonal and communication skills. Many auditors work in teams with others who have diverse backgrounds, so they must be able to communicate accounting and financial information clearly and concisely. Irrespective of qualifications, nonetheless, competition will remain intense for the most high-status jobs in large auditing and business organisations. An increased need for auditors also will arise from a superior emphasis on responsibility, transparency, and controls in financial reporting. Increased scrutiny of company finances and accounting procedures will create opportunities for auditors, particularly CPAs, to audit financial records more thoroughly and completely. Auditors more and more will be needed to ascertain and eradicate fraud before audits, and ensure that essential processes and actions are documented correctly and comprehensively.
Auditing firms generally have a clear profession track from beginner to executive and on up the ladder. Should an individual stay focused, such person could pull in serious money as a partner in the firm. Auditing is a skill that is always in demand. Even when times are tough for businesses, they can’t get by without balancing up their accounts. As an auditor, an individual could observe procedures in a factory today and in a multi-billion-dollar aerospace manufacturer the next. Auditors are bound by secrecy but imagine being allowed to walk through small, medium, and large businesses across all industries simply because you are qualified to audit. The climax of being an auditor is being able to interrelate with people from all levels of business, including CEO. Think about the clothes you wear, the car you drive, or the office building you work in, they are all result of a business process. If one becomes an auditor an individual will have the capability to perhaps observe all these practices.