An Auditor is a finance expert who analyses financial records of companies in order to ensure that the records are accurate and transparent. The process of carrying out these duties is known as auditing.
Types of Auditors
There are two basic categories of auditors. These are internal and external auditors. However, Forensic auditing is also a specialization on its own.
Internal Auditors: These are experts who audit the accounts or financial engagements of companies they work in. They are guided by the Institute of Internal Auditors (IIA) and are required to be objective and fair. Internal auditors mostly report to the highest body of authority in an organization.
External Auditors: These are auditors who work in auditing firms. They are periodically called upon to evaluate the financial records of other organizations. They equally help to justify or discredit the financial policies of organizations. On many occasions, they provide professional financial advice.
Forensic Auditors: They specialize in investigating suspicious financial activities in an organization. They also carry out investigations on cases such as embezzlement, banking crimes, tax evasion, money laundering, among others. Forensic auditors mostly work with lawyers and law enforcement agencies.
Important Skills for Auditors
Differences between an Accountant and an Auditor
The responsibilities of accountants and auditors are sometimes similar. However, they are quite distinct in many aspects. Some of these are:
Organizations hire auditors to determine the effectiveness of their accountants.
While accountants mostly work as employees in their companies, auditors work periodically or on a contract basis.
Accountants may have to work every day but auditors work at certain periods, depending on the rate of auditing that a company needs.
Auditors occupy more significant positions.
Auditors work with auditing standards while accounting practices are controlled by International Accounting Standards.
Every business needs an accountant but not all would need an auditor.
When accountants come up with a company’s end of year financial strength, an auditor is required to check if the assertions are genuine, accurate, and ideal.
Auditors can audit the accounts of different companies at the same time.
Other Important Responsibilities of Auditors
They determine the level of financial risks that organizations can take.
Auditors develop new financial policies.
They represent financial records on a spreadsheet
Sometimes, they help to review wages.
They make sure that a company’s assets are secure.
Auditors occupy top positions in Insurance Companies, Banks, Government Agencies and other financial institutions.
Your earnings as an auditor depends largely on your level of experience and education. However, the highest annual income for most auditors is about $107,000 while the lowest you can earn is about $39,000 yearly. This means that the median annual income for auditors is about $62,000. Interesting, isn’t it?
Education and Training for Auditors.
Auditors usually have educational backgrounds in Accounting, Insurance, and Bookkeeping. But to become a qualified auditor, you will have to take some professional exams. You also need to be a chartered accountant. Then, you can obtain a Masters degree qualification in a relevant field if you need additional qualifications.
However, you should know that a few universities already have courses which focus more on Auditing. Others also have Auditing as one of their specializations. So, if a career in auditing is ideal for you, you should begin to consider enrolling in these schools below.
Chat us up immediately, if you are thinking of enrolling in any of the schools. We’ll be glad to help.