Auditor
An auditor is a professional trained in accounting who reviews and verifies the accuracy of an organization's financial records. They play a crucial role in both the public and private sectors, ensuring compliance with regulations and identifying any inaccuracies or fraudulent activities. There are two primary types of auditors: internal auditors, who assess an organization's internal financial controls, and external auditors, who are hired from outside firms to conduct independent reviews. The work environment for auditors is predominantly office-based, often requiring extensive use of technology and financial software. Individuals pursuing a career in auditing typically possess strong analytical skills, attention to detail, and an interest in data analysis and regulatory compliance. A bachelor's degree, generally in accounting or a related field, is required, with certifications in specific accounting areas enhancing job prospects. Auditors may also specialize further in areas such as IT auditing or environmental auditing, reflecting the diverse nature of this profession. Overall, the role of an auditor is vital for maintaining financial integrity and transparency within organizations.
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Subject Terms
Auditor
Snapshot
Career Cluster(s): Business, Management & Administration, Finance, Government & Public Administration
Interests: Analyzing data, accounting, finances, record-keeping, detail work
Earnings (Yearly Median): $79,880 per year $38.41 per hour
Employment & Outlook: 4% (As fast as average)
Entry-Level Education Bachelor's degree; certification in a specific accounting field
Related Work Experience None
On-the-job-Training None
Overview
Sphere of Work. Auditors use their training in accounting to review the accuracy of an organization’s financial records. Auditors work for and verify the financial records of the public sector (including government agencies and departments) and the private sector (including large corporations, small businesses, and nonprofit organizations). There are two main areas of auditing—internal auditing and external auditing. Internal auditors review their organization’s internal financial controls and record-keeping for evidence of waste or fraud. External auditors are hired, often as a condition of regulatory and stakeholder compliance, from an outside organization to review and verify the accuracy of an organization’s financial controls and record keeping.
Work Environment. An auditor’s work environment is generally desk-based. Depending on the employer and particular job description, an auditor may telecommute from a home office, visit client offices as a contractor, or work on a full-time basis in an employer’s office. Auditors may work as full-time members of a work team responsible for ongoing financial document review and documentation or may be hired as a contractor. An auditor’s work environment is dependent on technology, including computers and financial software programs, as well as having access to the most recent government regulations.
Occupation Interest. Individuals interested in the auditing profession tend to be well-organized and detail-oriented people who find satisfaction in reviewing and analyzing systems, processes, and large amounts of data. Auditors may also have an interest and affinity for technology and regulatory issues. For instance, those who excel in auditing tend to be adept at educating themselves about and responding to frequent technological and regulatory changes. Analytical people choosing to pursue the occupation of an auditor may find satisfaction in staying up-to-date on auditing best practices.
A Day in the Life—Duties and Responsibilities. An auditor’s daily occupational duties and responsibilities include reviewing, verifying, and certifying the accuracy and authenticity of financial records. Specific duties, schedules, and assignments vary between internal and external auditors. Further specialization can occur as some choose to pursue interests in information technology (IT) auditing, environmental auditing, financial auditing, and compliance auditing.
Internal auditors will review their organization’s financial records on an ongoing basis, looking for regulatory compliance or indications of employee mismanagement, waste, or fraud. Internal auditors review all financial records, including ordering, payroll, inventory, expenses, work orders, equipment purchasing, profit/loss statements, and taxes. Internal auditors are also increasingly responsible for reviewing and overseeing financial software as organizations have moved to automate financial transactions. Internal auditors report findings to management and often participate in developing the organization’s financial policies and best practices.
External auditors, usually employed by public accounting firms, will be hired on a contract basis quarterly or annually to review the financial documents of businesses or government departments. Stakeholder and state and federal laws generally require businesses to seek an external independent audit of all financial records on a regular basis. External auditors often report their findings to regulatory agencies, such as the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS).
County/City Auditors. County/City Auditors direct activities of personnel engaged in recording deeds and similar legal instruments, keep records of county or municipal accounts, compile and transmit fiscal records, prepare financial statements, and audit books of city or county offices.
Tax Auditors. Tax Auditors audit financial records to determine tax liability. They review information gathered from the taxpayer, such as material assets, income, surpluses, liabilities, and expenditures, to verify net worth or reported financial status.
Work Environment
Immediate Physical Environment. Auditors generally work in office environments. The work of an auditor requires sitting at a desk and using computers for long periods of time each day. Auditors hired to perform external audits may be required to travel to client offices to review financial records and attend meetings.
Human Environment. An auditor’s human environment may be social or isolated depending on the assignment and the organization. These factors will influence interaction with clients, employees, supervisors, or colleagues. It must be noted that auditors—who are by their job definition responsible for finding problems, waste, and fraud—may be perceived in an adversarial or hostile way by some organizational employees.
Technological Environment. An auditor’s technological environment will generally include computers, financial and auditing software, file-sharing programs, and telecommunication tools.
Education, Training, and Advancement
High School/Secondary. High school students interested in pursuing an auditing career should prepare themselves by building good organizational skills and developing strong study habits. They should also develop strong mathematical skills. Students should consider applying for internships, part-time work if available, or even volunteer work with local financial organizations to learn what it is that auditors do on a daily basis.
Postsecondary. Postsecondary students interested in pursuing an auditing career should prepare themselves by building a foundation in mathematics, accounting, and business courses. Due to the importance of technology, law, and ethics in the practice of auditing, postsecondary students interested in pursuing a career in auditing will also benefit from studying both computer and political science. Postsecondary students committed to pursuing auditing will gain experience and build connections through auditing internships and part-time employment with financial businesses, such as accounting and auditing firms. Most auditors have bachelor's degrees, usually in accounting or a similar field. Obtaining a license within a specific subfield of auditing may open up more job prospects.
Related Occupations
− Actuary
Bibliography
"Accountants and Auditors." Occupational Outlook Handbook. Bureau of Labor Statistics, US Department of Labor, 17 Apr. 2024, www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm. Accessed 23 Aug. 2024.