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.
- 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.
- 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.
- 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.