Overview of Auditing Career
A career as an Auditor would require you to work with a variety of clienteles and evaluate their financial statements for accuracy and compliance to the applicable by-laws and regulations. Further, you will be required to conduct a detailed assessment of an organization’s accounting policies and procedures along with their information technology infrastructure which is used to store and maintain the financial information. Other major types of auditors include internal auditors and external auditors who also review how the records are reported and then recommend improvements if found necessary.
The responsibilities of auditors can be very taxing given that they are involved in building the organizational policies, overseeing procedures and ensuring the accuracy of financial reporting. As such, it is quintessential that auditors don’t limit themselves to just accounting and auditing expertise, but rather build excellent communication and interpersonal skills. These skills will help them in explaining their findings and communicating their recommendations to the clients. In this article, we will discuss some of the major career profiles of auditing career at different levels of employment.
Top Career in Auditing
In this article, we will discuss some of the career paths in the field of Auditing:
1. Information Technology Auditor
As an information technology auditor, you will be specialized in the field of information systems and you can work within an organization or offer expert support as an external reviewer through another accounting firm or as a consultant.
Responsibilities
The major responsibilities of information technology auditors include:
- Ensuring that information systems comply to the organization’s internal policies, external by-laws, and regulations
- Analyzing the information technology infrastructure for vulnerabilities in data processing and storage
- Recommending improvements in systems and practices to minimize security risks
- Prepare detailed reports and present them to the business leaders
- Recommend system upgrades and changes in internal policies intended for access, use, and maintenance of financial information
Educational and Experience Requirement
The information technology auditors should have the following educational and professional background:
- At least a bachelor’s degree in the field of accounting, finance or other related disciplines alongside certification in information technology
- Around 3 years of relevant experience is usually preferred for accountants joining as information technology auditor
- Other preferable qualifications include Certified Public Accountant (CPA) license and Certified Information Systems Auditor (CISA) credential
Salary
In the US, the average annual salary of information technology auditors is around $93,560, with the bottom 25% earning $75,000 or less while the top 25% earning in excess of $106,000. The highest annual compensation of information technology auditors can go up to $143,000 while the minimum compensation can be as low as $44,000.
Source Link: https://www.ziprecruiter.com/Salaries/Information-Technology-Auditor-Salary
2. Internal Auditor
As an internal auditor, you will be identifying problems in the company’s internal policies and suggest changes to improve them. You will be working within the organization and This role provides an important assessment of a company’s current practices in order to maintain compliance with various regulations and to prepare for external reviews.
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Responsibilities
The major responsibilities of internal auditors include:
- Assessing the company’s past records, current processes, and procedures and ensure that the system is devoid of any fraud or misrepresentation
- Reviewing the current practices to detect any potential issue with the existing system
- Ensuring that the organization’s reporting is in compliance with the internal policies and external regulations
- Periodically monitor the system for risks and recommend changes to the leaders in order to facilitate system improvement
Educational and Experience Requirement
The internal auditors should have the following educational and professional background:
- At least a bachelor’s degree in the field of accounting, business or other related disciplines
- More than 3 years of relevant experience is usually preferred for the role of the internal auditor
- Other preferable qualifications include Certified Public Accountant (CPA) license, Certified Information Systems Auditor (CISA) credential, Certified Internal Auditor (CIA) certification, Certified Fraud Examiner (CFE) credential
Salary
In the US, the average annual salary of internal auditors is around $86,316, with the bottom 25% earning $75,500 or less while the top 25% earning in excess of $91,000. The highest annual compensation of internal auditors can go up to $110,500 while the minimum compensation can be as low as $61,000.
Source Link: https://www.ziprecruiter.com/Salaries/Senior-Internal-Auditor-Salary
3. External Auditor
As an external auditor, you will be primarily reviewing an organization’s financial statements, internal policies and control systems as an external reviewer. You will be either working for public accounting firms or as a self-employed external auditor.
Responsibilities
The major responsibilities of external auditors include:
- Identification of potential fraud risks by analyzing how well an organization upholds the relevant laws and regulations
- Reviewing financial statements to check for compliance with the Generally Accepted Accounting Principles (GAAP)
- Collaboration with internal auditors to conduct an audit
- Prepare detailed audit reports along with recommendations
Educational Requirement
The external auditors should have the following educational and professional background:
- A bachelor’s or master’s degree in the field of accounting or other related disciplines
- More than 3 years of relevant experience is usually preferred for the role of an external auditor
- Other preferable qualifications include Certified Public Accountant (CPA) license and Certified Fraud Examiner (CFE) credential
Salary
In the US, the average annual salary of external auditors is around $79,610, with the bottom 25% earning $55,500 or less while the top 25% earning in excess of $106,500. The highest annual compensation of external auditors can go up to $119,500 while the minimum compensation can be as low as $31,500.
Source Link: https://www.ziprecruiter.com/Salaries/External-Auditor-Salary
4. Audit Manager
As an audit manager, you will be responsible to oversee the internal reviews of finance, accounting, business operations, and information technology systems in order to avoid any kind of fraud.
Responsibilities
The major responsibilities of audit managers include:
- Evaluation of current practices and identification of any potential fraud
- Maintain compliance to the internal policies along with the external regulations
- Training and supervising junior accountant staffs
Educational Requirement
The audit managers should have the following educational and professional background:
- A bachelor’s or master’s degree in the field of accounting or other related disciplines
- 5-10 years of relevant experience is usually preferred for the role of audit manager
- Other preferable qualifications include Certified Public Accountant (CPA)
Salary
In the US, the average annual salary of audit managers is around $90,005, with the highest annual compensation of audit managers of up to $115,000 while the minimum compensation can be as low as $71,000.
Source Link: https://www.glassdoor.co.in/Salaries/us-audit-manager-salary-SRCH_IL.0,2_IN1_KO3,16.htm?countryRedirect=true
Conclusion
So, it can be seen that the role of an auditor (information technology, internal or external) largely requires you to recognize the potential risks in the existing system and then analyze them to come up with recommendations to prevent these risks from realizing. A career in auditing offers you the opportunity to either work within an organization or work as an independent consultant. However, in all the roles your focus should be to provide objective assessment and educated opinion on how to improve the existing practices and procedures with overall intention to increase operational efficiency, reduce risk and comply to all relevant law and regulations.
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This is a guide to Auditing Career. Here we discuss some of the career paths in the field of auditing along with responsibilities, educational requirements, and job outlook. You may also look at the following articles to learn more –
