If you find the worlds of business consulting and/or accounting to be interesting, you might have asked yourself, “What is an auditor?” Below you can obtain an answer to this question and several others pertaining to the field of auditing, such as expected salaries and educational requirements. In reviewing this data, you can determine whether becoming an auditor would be appropriate or advantageous to you.
The Auditor – A Brief Overview
Auditors are individuals who examine and prepare financial documents and records for their employers. In so doing, auditors ensure that important financial records contain accurate information while also ensuring that taxes are paid on time and according to established state and/or federal rules and regulations. In assessing and performing financial services, auditors ensure that the organizations employing them can run efficiently.
Work Environment
Generally, auditors work a full-time schedule, 40 hours per week. In the year 2012, about one out of five auditors exceeded this full-time schedule, working an excess of 40 hours weekly. During some times of the year, such as tax season or the end of the business’s budget year, longer work hours are to be expected.
Roles and Responsibilities
There are a variety of services that an auditor can expect to provide, and some of them may include:
- Checking, analyzing and collating data from spreadsheets
- Gauging an organization’s financial risk level
- Examining financial control systems and company accounts
- Ensuring that financial records and reports are reliable/accurate
- Identifying and modifying ineffective processes
- Preparing financial statements, commentaries, and reports
- Working in conjunction with the managerial staff
- Reviewing wages
- Presenting recommendations and findings
Types of Auditors
There are two types of auditors, internal and external.
Internal
Typically, internal auditors will work for a professional firm that was outsourced by the client’s company. These auditors will work in-house as an important asset to the business’s acccounting team. Internal auditors will generally work within the private sector for charities, organizations, and companies. Their primary purpose is to optimize the efficacy of organizations by identifying and modifying ineffective and/or outdated processes.
External
External auditors work with the firms of certified and chartered accountants, such as the National Audit Office. These individuals conduct the obligatory audits of governmental bodies and other public sector entities. In some cases, external auditors may be called upon to analyze the financial status of private businesses. This is especially the case for those who work for governmental agencies. External auditors are considered to be a vital part of the businesses that employ them because they ensure that tax money is appropriated efficiently and expediently in order to pay for services that advance the good of the general public.
Educational Requirements
Typically, individuals who work as auditors obtain a bachelor’s degree in the field of accounting or a similar field such as finance.
According to the U.S. Bureau of Labor Statistics, auditors earned an average annual salary of $63,550 in May of 2012.
Related Resource: MBA in Finance
Conclusion
If you have given any consideration to becoming an auditor, you should know that doing so can provide you with a plethora of personal and professional advantages. Now that you have attained an answer to the general question “What is an auditor?” you can decide whether this occupation will help you accomplish your career objectives.
