what is an auditor?
An auditor is someone who has the qualifications necessary to evaluate and ensure the accuracy of a company's financial accounts. In this role, you'll guarantee tax compliance and validate the business actions of your employer to ensure the company is running smoothly.
In an advisory role, you assist your employer in identifying cost-saving measures and risk-aversion methods that improve business success. As an economic specialist, you assess the financial health of a company and provide recommendations to improve revenue and minimize expenses.
what does an auditor do?
All companies require an internal or external auditor to assess financial soundness and ensure compliance with industry regulations. Auditors also work for the government and public corporations to ascertain the proper handling of funds and uncover embezzlement and misappropriation schemes.
In the private sector, auditors act as consultants who ensure financial records mirror the state of an organization. You also provide unbiased evaluations and recommend ways to improve a company's current practices and processes.
Generally, your objective as an auditor is to assist companies in improving operational productivity, mitigating risk, and ensuring compliance. As part of a company’s accounts department, you could work in the banking and finance sectors as well as industries like manufacturing and production.
Would working as an auditor suit your analytical skills? Then read on to find out what competencies and qualifications you need to thrive in an auditor role.view jobs near you
average auditor salary
Auditors earn a median salary of $78,000 per year.
factors that impact an auditor salary
There are numerous factors that impact your auditor salary. If you live in a smaller town or city, you'll have a lower cost of living. In this scenario, you'll likely earn a lower salary. On the other hand, auditors who work in large cities should earn higher salaries. For example, auditors in San Francisco and NYC tend to earn more than auditors in a small town with a population of 20,000.
The industry you work in also determines your annual salary. For example, auditors who work in the software publishing or computer manufacturing industries might earn higher salaries than those who work for a government entity. Keep in mind that your salary as an auditor also depends on your experience level as well as the amount of education you have.
Wondering what you can earn as an auditor? Find out immediately with the Randstad salary checker! You can quickly and easily see what the average salary of an auditor is.
types of auditors
You can branch out into various specialisms in your auditing career. Some of the common types of auditors include:
- internal auditors: When you are an internal auditor, your employer dictates your responsibilities. Your role is to review the performance of employees and ensure financial records comply with the company's standards and accounting systems. You also conduct risk assessments and assist managers in making sound business decisions.
- external auditors: As an external auditor, your job is to carry out mandatory statutory or financial audits to determine the accuracy of records. Your responsibility is to ensure the financial records paint an accurate picture of a company's financial situation. The report you prepare provides unbiased evidence of the integrity of a company to its stakeholders.
- forensic auditors: In forensic auditing, your job is to investigate illegal activities and fraud in a company. You can also help organizations determine protection measures to prevent embezzlement and fraud.
- tax auditors: Your work as a tax auditor is to verify the integrity of a company's tax returns. You determine whether a company correctly estimated its tax obligations.
working as an auditor
Becoming an auditor is an exciting career with diverse responsibilities and work environments. Read on to find out how you spend your time as an auditor and whether the role might be something you enjoy.
auditor skills and education
To land a job as an auditor, you must first meet the necessary education requirements.
Your first goal involves obtaining an undergraduate degree in accounting. Make sure you know how to use spreadsheets and databases before applying for a position. You can bolster your resume by completing a master's degree in accounting, which prepares you for taking the CPA exam.
To act as an auditor in any state, you must receive a certification from that state. Keep in mind that requirements vary. In many cases, obtaining a CPA license before applying for an auditor job is beneficial. To receive this license, you must complete 150 semester hours of courses.
skills and competencies
Can you combine your qualifications with hard and soft skills? Then you are likely to thrive in your career as an auditor. Some of the important skills include:
- analytical skills: Your job is to identify issues in documentation and provide effective solutions. To review the financial records and analyze company processes, you need exceptional analytical skills to investigate and interpret the information at hand.
- organization skills: In auditing, you work with a range of financial records, and sometimes you have to maintain documents from multiple clients. Strong organizational skills help you sort documentation and keep paperwork to provide accurate results.
- communication skills: As an auditor, you work closely with clients and the upper management. Therefore, it is crucial to have good communication skills. You need to understand your clients' needs and concerns to provide solutions. Sometimes, you have to make presentations on your audit findings or write reports, which need proper communication skills.
- math skills: In auditing, you spend most of the day crunching numbers and analyzing records to interpret facts and figures. If you are able to combine math skills, proficiency in data analysis, and accounting skills, you can be successful in your auditing career.
- attention to detail: Mistakes in auditing have severe consequences, including fines and legal actions. You should be attentive to details when examining accounting records to help your clients avoid penalties and liabilities.
FAQs about working as an auditor
Here you will find answers to the most frequently asked questions about auditors.