An auditor is a finance professional who will conduct risk management audits internally or financial audits of external commercial organizations. The primary purpose of the auditor when they are working directly for a company that they are auditing is to protect the assets of the company and ensure that the company is complying with federal regulations and the organization’s internal controls. The primary purpose of an external financial auditor is to express an opinion as to whether or not the financial records of a client is accurate and honest in an effort to protect stakeholders, investors and creditors. Internal and external auditors can work in a variety of different settings in both the public and the private sector as an employee of an organization, an accounting firm, or as a self-employed individual. If you would like to work in finance and you want to know more about the profession, read this guide and make an informed decision.
Salary
Salary ranges for both internal and external financial auditors range significantly based your years of experience, level of education, and the type of organization that you work for. Based on all of the salaries reported, the average salary of auditors in the United States is $63,550 per year according to Bureau of Labor Statistics.
Beginning Salary
When you are a new graduate and you are seeking a position in the field, you must expect to earn an entry-level salary. An audit associate who has no professional experience in the field can expect to earn a starting salary of about $53,300, which is up from 2012 where the starting salary was $49,700.
Key Responsibilities
All auditors will review financial records and statements to ensure that they are valid, complete and that they comply with the law. In order to do this, they will work within the accounting department to examine records and see the amount of money that is coming in and where it is being spent. Some of the key responsibilities of auditors in all settings include:
* Collect financial data and analyze the data to spot deficiencies in internal controls
* Detect fraud or non-compliance with the regulations and laws
* Gauging the level of financial risk for risk management purposes
* Prepare detailed reports after conclusions from the audit have been made
* Report to executives about the conclusions and make recommendations about activities
* Inspection of accounting books and the procedures to ensure they are effective
* Examination of the company’s financial controls
Necessary Skills
A successful auditor needs to possess a specific set of skills that goes well beyond learning what debits and credits are on a financial ledger. The best auditor will have strong technical skills and is ethical by nature so that they are not tempted to allow records to pass when they do not. Auditors also need to have an inquiring mind and the ability to see the big picture when they are planning all stages of their audit. Because you will be working closely with accountants, clients and management, you must also have excellent people skills and superior communication skills. Not everything that you need can be taught in school.
Degree and Education Requirements
If you would like to enter the field, having a degree will give you a strong advantage. In fact, most employers will require that all qualified applicants have no less than a Associate’s degree, and sometimes a Bachelor’s degree, before they will be eligible for employment as an auditor. The best undergraduate degree to pursue is a Bachelor’s degree majoring in Accounting or Finance. Either of these accredited degree programs will give you the technical knowledge that you need and the skill that is critical to succeed in internal or external auditing.
Once you earn your undergraduate degree, you can advance your career by taking an advanced degree program or testing to become certified. Many public accounting firms require candidates to have a Master’s of Accountancy because advanced curriculum is covered. If you are applying with a top firm or an organization when the competition is fierce, being a Certified Internal Auditor through the Institute of Internal Auditors can give you leverage over applicants who are not certified.
Rewards and Challenges of this Position
Knowing the advantages and disadvantages of possessing a specific title can help you determine if the occupation is a good fit for you. Auditing can pose several challenges because of the structural changes in audit regulation that are being enforced. Keeping up with new laws, procedures and regulations can be difficult for people who do not like change. It can also be difficult to work with different team members who all have their own goals and intentions. While auditing is challenging, it has its benefits. You will often work in an office setting and enjoy office hours and stability. If you have an inquiring mind and you love analyzing records, this is a great place to use your skills.
Getting Started
Once you earn your undergraduate degree to meet the most common of the qualifications, the first step will be to network with upper level management in accounting departments so that you can get an opportunity to gain experience and show off your skills. You can market while you are still in school studying accounting or finance. It can also be beneficial connect with your professor, who has connections in the industry, so that you can get in contact with recruiters of accounting firms or big organizations.
You should start by applying for entry-level accounting positions so that you get familiar with the field. Once you have experience in accounting, you can work your way up to becoming an auditor associate. While you are working in accounting, taking the time to become certified will give you a great advantage to show that you are competent and can hold the title.
Future Outlook
Job outlook is a very important factor to consider when you are pursuing any career. It is important to know that there will be growth in the field by the time that you graduate. The future outlook for financial auditors is positive, and the Bureau of Labor Statistics projects market growth of about 13 percent by 2022. The growth rate is above average in auditing because accounting software cannot replace the need for experienced auditing professionals. The retirement rate is also contributing to the number of jobs opening up.
As regulations and accounting standards change, the need for auditors will grow. If you want to work in accounting and you would like to analyze records and review them for accuracy, auditing could be the right field for you that will keep you passionate about your job.
