Content
Not all auditors will work at a company, providing oversight and working their way up to a senior position. Some will work within government agencies, like the IRS, performing tax audits and other investigations to ensure accurate reporting of individuals and businesses. Other auditors will choose specialized fields to work in, such as healthcare compliance or manufacturing quality assurance.
On average, the annual salary of an auditor is $58,004, with a range of $43,000 to $83,000. After completing the degrees or experience required, an auditor will get certified in the domain of auditing that they wish to pursue professionally. Candidates can register for the CIA exam once they have met the educational requirements.
Students wishing to pursue a career as an auditor will enter a growing field fueled by an increase in globalization and the ever-changing tax and regulatory climate. According to the BLS, employment of auditors and accountants is expected to grow by 6% from 2018 to 2028. Individuals interested in how to become an auditor should take advantage of any opportunity to gain real-world experience. As they pursue their career aims, they may work in various types of junior-level accounting and auditor roles. In the first several years of their career path, their main activities may involve providing support for several clients.
The CIA exam measures breadth and depth of a test-taker’s skills and knowledge solely in the field of internal audit. Earning the credential presents its holder as a practitioner with a solid grasp and thorough understanding of a complex and demanding professional arena. The CIA designation often positions certificate holders for executive and leadership roles within their company or organization. Additionally, it expands the professional arenas where CIAs can practice, since it is a highly desirable credential in virtually any industry. Many CIAs also get the chance to impact the profession at the policy-setting level. Auditors are also responsible for reviewing an organization’s data, accounting entries, balance sheets and tax returns.
You’ll further hone these abilities with a master’s degree in accounting. After you optimize your understanding of tax concepts and financial management, you’ll be able to leverage your education once you begin a career as an auditor. Courses in financial accounting, managerial accounting, and advanced auditing will help prepare you for everything you’ll face in a corporate environment. Before you begin a career as an auditor, you’ll need to develop relevant skills by meeting a few educational requirements. You’ll first need to obtain a bachelor’s degree in accounting, through which you’ll develop skills in economics, critical thinking, and quantitative analysis. You’ll also gain critical experience in financial reporting, GAAP, and other accounting practices. Auditors work closely with a company’s accounting department to examine financial records and ensure correct financial practices.
Where a test taker completes the exam bears no relevance to the outcome of the exam. This is defined as thoroughness in accomplishing tasks by showing concern to all the areas involved, regardless how small a detail may be. It also means efficiently monitoring and checking information or work to ensure that the end results are accurate and complete.
Auditors suggest potential changes to an organization’s financial reporting procedures and advise on adjustments to internal controls. They may also provide an organization with information regarding potential fraud and the means to rectify it. To become an auditor, you’ll need at least an undergraduate degree in accounting. Being proficient in the use of databases and spreadsheets can be helpful.
Get An Internship And Gain Some Experience
Financial auditors inspect accounting data, financial records, and operational aspects of a business to determine whether its financial statements follow generally accepted accounting principles . Financial auditors also evaluate and test internal controls and governance. They regularly analyze risk management processes to provide objective opinions on whether the systems are adequate, efficient, and effective. Additionally, they work to uncover, investigate, and prevent all kinds of fraud within an organization. The first step is to ensure that you are qualified to become an auditor. The basic required qualifications are a bachelor’s degree in the field of finance, accounting or business administration.
Organizations in many industries hire auditors to protect not only the business itself but also investors and employees. Government agencies and accounting and consulting firms are among the organizations that work with auditors to ensure that public funds are being used appropriately. Read on for an overview of what auditors do, how to become an auditor, and average auditor salaries.
- An external auditor who works in a public accounting firm generally requires either a bachelor’s degree or a master’s degree in accounting.
- Once you’ve identified the degree you want, you’ll have to find the right institution to attend for the degree.
- Internal auditors at publicly traded companies generally report to the audit committee of the company’s board of directors.
- Before you switch careers, you need to understand what is expected of you when you become an auditor.
- The basic required qualifications are a bachelor’s degree in the field of finance, accounting or business administration.
- Furthermore, U.S. News & World Report ranked UND among the top 25 most innovative schools in the country.
- Read on for an overview of what auditors do, how to become an auditor, and average auditor salaries.
In addition to the certification, most financial auditors working for public accounting firms also need to obtain state CPA certification. Requirements vary, but most states’ licensing standards require a CPA designation and two years of professional work experience in public accounting. Financial auditors may work in junior positions under the supervision of a licensed CPA to count as the appropriate work experience requirement for a license. Developed by the American Institute of CPAs, the exam consists of four parts and covers topics such as financial accounting, regulation, and business concepts. According to the CAQ, even if your particular firm doesn’t require a CPA license, passing the exam is a way to expand your career options and to get recognized in the field. A company’s accounting department provides critical financial services, including budget management, paying bills, and filing taxes.
Step 4: Acquire Certification And Licensing
However, there are a handful of accredited high quality institutions that offer worthwhile degrees that you can earn on your own schedule. Having been employed by a Big 4 Firm carries a lot of weight in the industry and can offer you career opportunities you couldn’t get elsewhere. Manuals and Software IIA offers a range of print and digital materials test takers can purchase as financial resources become available. IIA releases official test scores through the CCMS within hours of exam completion. Test takers who get a failing score receive a review of each topic they failed to help them improve their score the next time they take the test. This section outlines exam requirements, test topics, registration and payment, and other relevant information about the CIA examination.
A bachelor’s degree in accounting is typically a minimum requirement, though some employers will look for candidates with a Master’s degree in accounting or even an MBA. An alternative path to becoming an auditor requires five years of relevant experience before certification. Because an auditor provides oversight for crucial documentation and processes, they need to be certified. The auditor will be responsible for reviewing, analyzing and informing the company on the accuracy of financial statements.
Step 3: Expand Knowledge And Skills Continually
This growth rate is the same as the forecasted growth rate for all occupations, and indicates a favorable job outlook in future years. An accountant is a certified financial professional who performs functions such as audits or financial statement analysis according to prescribed methods. A certified financial statement is a financial reporting document that has been audited and signed off on by an accountant. Jobs for auditors are expected to grow at an average rate of 4% over the next decade, which is on par with the average. In 2019 there were 1.4 million people employed as accountants and auditors; this number will fluctuate in lock-step with the health of the economy. With a bachelor’s degree, you may also consider pursuing a career as a financial analyst or a budget analyst. Financial analysts are professionals who help clients make decisions about investment opportunities.
After reviewing this information, they produce objective reports highlighting any gross mistakes that may be prevalent in the organization. Certified Internal Auditor is a certification offered to accountants who conduct internal audits. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.
Many accounting degree graduates take more accounting and business classes to fulfill the education requirement to sit for the Certified Public Accounting exam. The CPA license is one of the most prestigious credentials that accountants can earn, and it often opens up more career opportunities than an undergraduate degree in accounting alone. The four parts of the CPA exam are financial, auditing, business environment and regulation. Subsequently, audit agencies are confident that accountants who pass the CPA exam have sufficiently mastered the subject of auditing. Additionally, accountants who want to become internal auditors within their companies can earn the Certified Internal Auditor designation administered by the Institute of Internal Auditors .
Not Ready For Certification Yet? Explore Degree Options In Accounting
To become an auditor you must hold at least a bachelor’s degree in accounting or another relevant field. A master’s degree in business administration with a focus in accounting may increase your chance of employment.
You may also analyze market trends to help determine how companies can reduce financial risks. For example, the National Institutes of Health sends auditors to public and private research organizations to ensure the appropriate use of taxpayer funds for specific programs. In some states, auditors routinely review city, town, and village government finances and assess criminal and civil penalties if funds are misused or mismanaged. Auditors contracted by companies will typically perform an in-depth review of that company’s finances to ensure full policy compliance. Sometimes, auditors employed internally by an organization can offer additional financial management services, in addition to their regular audit procedures.
How To Get Cpa Certification And Licensing
U.S. public companies must hire an auditor at least once a year to ensure accordance with generally accepted accounting principles . The first step toward becoming an auditor is to earn a bachelor’s degree in business, accounting, economics, data analytics or other related subjects.
Licensure And Certification
Budget analysts are responsible for developing budgets, preparing budget reports, and monitoring spending. Internal auditors monitor the management of an organization’s finances, flagging any cases of mismanagement if they occur. They are responsible for improving efficiencies and reducing the chance of fraud.