Auditor Job Description

Mayuri Kulkarni Jun 23, 2019
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An auditor is a finance professional who verifies the accounting records of a particular business or an organization. Read on to know the job description of an auditor along with other essential information about this job profile.
An audit is basically a verification and evaluation of an individual, organization, product, or project and is performed to ascertain reliability and validity of the information provided.
Basically, audits are associated with accounts department of any firm, but they can also be performed for verification of quality management, project management, etc.
An audit is an independent assessment of fairness of profit and loss provided by management of a company. An auditor is a professional who is authorized and specially appointed for examining accounts and accounting records, verifying balance sheets, income items, etc., and also issues the audit report.

Job Description of an Auditor

  • An auditor is basically a type of accountant who is responsible for verifying the financial records of a company.
  • He has to study the financial records, check the company's bookkeeping and accounting methods, compare company's books with records stated in banks, creditors, brokers, etc.
  • Thus, the main objective of an auditor is to analyze and prepare reports on profits, income tax savers, and management cut costs.
  • There are two types of auditors, external and internal.
  • An internal auditor works as an employee of a particular company and receives salary for all audit-related work.
  • An external auditor, however, is an independent auditor who audits for self-employed individuals and public accounting firms. External auditors usually audit for a company, once in a year.
  • In general, an auditor has to prepare a detailed audit report.
  • He has to review accounts of taxpayers and also conduct on-site audits.
  • It is his duty to collect and analyze the data to find out if there is any fraud, violation of laws, regulations and management policies, duplication, etc.
  • He is responsible for inspecting the account books of a company for analyzing the transactions and efficiency of the accounting procedures.
  • He has to report the management of the company regarding the audit results and suggest changes in financial activities and operations of the company.

Requirements

  • To become an auditor, one has to obtain a bachelor's degree with accounting as the major subject.
  • Economics, computers, humanities, communications, etc., are some of the courses that can prove helpful to a student who is aspiring to become an auditor.
  • Many public accounting firms also demand their external auditors to obtain a Certified Public Accountant (CPA), a designation provided by the state government.
The salary of an auditor is governed by several factors such as employer type, geographical location, years of experience, and educational qualifications.
According to 'Bureau of Labor Statistics', the median salary of auditors working in different industries during 2017 was:
  • Finance and Insurance - US $74,140
  • Management of Companies and Enterprises - US $72,160
  • Accounting, Tax Preparation, Bookkeeping, and Payroll Services - US $69,410
  • Government - US $67,100
Average annual salaries of auditors according to years of experience are:
  • Less than 1 or Fresher - US $51,000
  • 5 to 10 or Mid Career - US $59,000
  • 10 to 20 or Experienced - US $63,000
  • More than 20 or Late Career - US $63,000 or more than that
Remember, to become a successful auditor and for good career opportunities, one has to have good analytical, organizational and communication skills. Trustworthiness, in-depth understanding of business and an ability to work under tremendous pressure are also essential qualities an auditor should have.