A Guide to Pursuing a Career in Auditing: How to Become an Auditor
Are you looking forward to a career as an Auditor but are not sure how to commence drilling for the pursuit? This article gets you covered!
Auditors have an essential goal in fending enterprises and investors because they perform to secure the appropriate benefit of accounts. Becoming an auditor mandates education and training with negligibly diverse requirements for internal and external auditors. If you’re contemplating becoming an auditor, it’s vital to comprehend more about the steps on how to seek an auditing career path. You can tell help from Free Auditing Textbooks available online to learn more in detail.
This article discusses what an auditor is, how to seek this career path and the advantages of accomplishing it.
What is auditing?
Auditing is the method of evaluating a company’s financial logs, such as financial reports, general ledger, and expense accounts. Auditors interpret financial data and documents to specify their precision and whether a company adheres to permissible accounting guidelines and legal necessities. Other obligations contain detecting fabrication, assisting corporations to comply with finance, banking, and tax laws, and organizing tax returns. Auditors specify whether an organization fulfills its performance objectives and attaches to measures of trial.
Auditing also concerns assessing functional perils within the firm and physical inspections of recorded articles, such as commodities. If the employer is the same as the organization you’re auditing, you perform as an internal auditor. If the employer is diverse, you may operate as an external auditor.
How to pursue an auditing career path
To pursue a career in auditing, following these steps can be beneficial for you:
1. Earn a bachelor’s degree
Numerous employers require a minimum of a bachelor’s degree in accounting or an affiliated domain with a major in accounting. You can choose to be an internal auditor with a degree in other business specializations if you own adequate and complementary profession experience. Consider acquiring proficiency in databases and spreadsheets for data analysis and a master’s degree for increased remuneration, upgrades, and executive appointments.
2. Become a certified public accountant (CPA)
It’s essential to have a certified public accountant licensed to practice as an external auditor. Although state CPA prerequisites may deviate, they retain a specific number of hours of academic study in accounting and business issues. CPA licensure usually mandates clearing an exam and may implicate pinnacling a period of work as a licensed CPA holder.
Internal auditors also may profit from being a CPA because it’s an additional certification that establishes a level of training or competency on their resume. Although internal auditors don’t mandate CPA licensure, holding one can assist you to thrive in your occupation and gain a more heightened revenue.
3. Get work experience
As you begin your auditing career path, you may begin in a junior role, such as a financial analyst or in risk management. You can meet clients and other important management figures during this time, which can be a great opportunity to expand your professional network and skill set. Before obtaining your certified internal auditor certification, work enables you to better grasp the business and its procedures.
4. Become a certified internal auditor (CIA)
Those interested in a career as an internal auditor can obtain CIA certification. This certification is offered by the Institute of Internal Auditors (IIA) to show aspiring auditors how to succeed while developing internal audits for diverse organizations, such as enterprises, institutions, or governmental bodies. Depending on whether you have a bachelor’s or master’s degree, you should think about having at least one or two years of professional experience before applying to become a CIA. To demonstrate your internal auditing expertise, you also complete a three-part test.
5. Earn further certifications
Your company, your line of work, and your area of interest may all influence the certifications you decide to pursue. A certified information systems auditor (CISA) or a certified fraud examiner (CFE), for instance, might be hired to audit, regulate, monitor, and analyze the organization’s information technology and business systems. For example, becoming an internal audit manager, business controller, or financial director may require these extra credentials and job experience.
Reasons to pursue an auditing career path
Here are a few reasons to pursue a career in auditing:
Job opportunities
Many companies use auditors to assist them in managing their financial risks, controls, and regulatory compliance in order to stay out of court and avoid fines and penalties. You can switch between internal and external audits, work in both capacities while also providing auditing services in your spare time, or start your own auditing company. Because of the need, you might be able to get auditing jobs across several sectors. You may have promotion chances in this line of work. For instance, if you have job experience, you can be eligible for promotions to management positions.
Career flexibility
Your everyday work environment may be more flexible if you choose a career in auditing. You can obtain fresh occupations to try out different lifestyles because auditors are used by so many different businesses. For instance, based on your objectives and career prospects, you may relocate to a different city, state, or nation and alter your pay or working hours. As a result of visiting clients as part of your normal employment, you could travel more frequently.
Both internal and external auditors frequently interact with new customers, expanding their network in the process. By providing you with excellent employment possibilities and additional clients, networking may help you grow your career. If you appreciate taking on new challenges at work and frequently switching up your daily activities, think about a career in auditing. It’s also crucial to educate yourself on various industry norms and rules if you want to have a flexible job.
Business knowledge
High-level management in the business is frequently communicated with by auditors, allowing them to watch and learn from them. Also, you have extensive knowledge of corporate governance and legal compliance. These auditing credentials and expertise are transferable to other fields, such as switching careers in business.
Independence
Since they arrange their time, decide which activities to complete first, and assign priorities, auditors frequently work alone. Your employment reflects your skills and passion and can provide major long-term advantages. For instance, you may use these experiences to support your requests for pay increases or promotions and include them on your resume to show employers that you are a qualified applicant for the position you want. This position could be ideal for you if you prefer working alone and thrive in positions that emphasize self-motivation.
What’s the difference between auditors and accountants?
Although an organization’s financial activities are included in both auditing and accounting, their objectives are distinct. Accountants create financial papers, maintain track of everyday bookkeeping activities, and create and submit tax returns. They evaluate a company’s financial situation using this data to see if it is profitable or not. Auditors examine and confirm the accuracy of these financial reports while looking for any financial data that may be missing or explanations for discrepancies in financial records. They seek to provide an unbiased assessment of how trustworthy the reports are.
