Updated July 21, 2023
Overview of Auditing Career
A career as an Auditor would require you to work with various clientele and evaluate their financial statements for accuracy and compliance with the applicable by-laws and regulations. Further, you must conduct a detailed assessment of an organization’s accounting policies and procedures and its information technology infrastructure used to store and maintain financial information. Other major types of auditors include internal and external auditors, who also review how the records are reported and recommend improvements if necessary.
Auditors’ responsibilities can be very taxing, given that they are involved in building 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 explain their findings and communicate their recommendations to the clients. This article will discuss some of the major career profiles of auditing careers at different employment levels.
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 specialize in 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 the following:
- Ensuring that information systems comply with 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 to access, use, and maintain financial information.
Educational and Experience Requirement:
The information technology auditors should have the following educational and professional backgrounds:
- At least a bachelor’s degree in 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 auditors.
- 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 over $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/
2. Internal Auditor
As an internal auditor, you will identify problems in the company’s internal policies and suggest improvements. You will be working within the organization. This role provides an important assessment of a company’s current practices to maintain compliance with various regulations and prepare for external reviews.
Responsibilities:
The major responsibilities of internal auditors include the following:
- Assessing the company’s past records, current processes, and procedures and ensuring the system is devoid of fraud or misrepresentation.
- Reviewing the current practices to detect any potential issues with the existing system.
- Ensuring that the organization’s reporting complies with internal policies and external regulations.
- Periodically monitor the system for risks and recommend changes to the leaders 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, and 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 over $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/
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 work 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 over $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/
4. Audit Manager
As an audit manager, you will oversee the internal reviews of finance, accounting, business operations, and information technology systems to avoid fraud.
Responsibilities:
The major responsibilities of audit managers include the following:
- Evaluation of current practices and identification of any potential fraud.
- Maintain compliance with the internal policies along with the external regulations.
- Training and supervising junior accountant staff.
Educational Requirement:
The audit managers should have the following educational and professional backgrounds:
- A bachelor’s or master’s degree in accounting or other related disciplines.
- 5-10 years of relevant experience is usually preferred for the audit manager role.
- 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. In contrast, 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 work within an organization or 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 the overall intention to increase operational efficiency, reduce risk and comply with all relevant laws and regulations.
Recommended Articles
We hope that this EDUCBA information on “Auditing Career” was beneficial to you. You can view EDUCBA’s recommended articles for more information.
