What are the qualifications of an auditor?

The qualifications of an auditor are education, training and professional experience, and certifications. An auditor is a financial professional that verifies the work accountants do.

Auditors come into play after accountants have performed their financial record keeping. They examine documents and other information prepared by accountants to ensure they are giving an accurate picture of a company's financial situation. Auditors verify that these financial statements are assembled in accordance with generally accepted accounting principles.

Here are more details on the qualifications of an auditor:

• Education

Most companies with auditor roles require at least a bachelor's degree in accounting, finance, or another related area for the position. Some companies also prefer candidates with master's degrees in accounting or business administration (with an accounting concentration) for the position of auditor.

Coursework that should be completed during an aspiring auditor's college career includes financial accounting, accounting technology, taxation, auditing, business communication, and business law.

Certain universities and colleges also offer specific bachelor's and master's degree programs in auditing.

An advanced degree is not a requirement for an auditor, however, some states require advanced degrees or additional college credit hours to be considered eligible for certified public accountant certification. Graduate degrees can also help aspiring auditors get higher-level jobs with more earning potential.

• Training and professional experience

The vast majority of newly hired auditors receive on-the-job training for a certain period of time. This is done under the supervision of seasoned auditors and other accounting professionals.

This is helpful for those new to the field because they can shadow a professional auditor and ask them questions that will help them to better understand how to perform their job properly. Depending on the company, the training period can be as long as a few months, a year, or in some cases, even longer.

Internship programs are also a great opportunity for aspiring auditors who are still in college or those that have just graduated. These will also give some hands-on experience with the different tasks an auditor performs. Sometimes these internship programs even result in a full-time paid role after their completion.

At the very least, there are great networking and resume-building opportunities for young auditors. Certain master's degree programs require internships as part of their graduation guidelines.

• Certifications

Certifications represent a great qualification for auditors, as they prove they have expertise and ability in the field, as well as in accounting in general. There are several different certifications that are beneficial for auditors to obtain.

Certified Public Accountant (CPA) certification

A CPA-holding auditor is a tax specialist. CPA certification is offered by the American Institute of Certified Public Accountants (AICPA). CPAs give invaluable counsel on how to reduce the amount of taxes a company or client will owe each year.

In addition, if a client is worried about a possible IRS audit, a CPA is adept at minimizing the chance of such an audit. And if the audit does occur, a CPA can represent the client. Many companies prefer auditors that have a CPA certification.

Nearly all states require CPA candidates to complete 150 semester hours of higher education coursework, and a couple of states allow several years of public accounting experience to substitute for a bachelor's or master's degree.

Certified Internal Auditor (CIA) certification

The Institute of Internal Auditors (IIA) offers the CIA certification for aspiring auditors who have graduated from accredited colleges with an associate degree, bachelor's degree, or master's degree.

This certification requires passing a four-part test. Candidates with a master's degree must also possess one year of work experience as an auditor. Two years of professional auditor experience are required for those with a bachelor's degree, and five years of professional auditor experience for candidates with an associate degree.

Certified Government Auditing Professional (CGAP) certification

The CGAP certification is also offered by the IIA for auditing professionals with at least an associate degree who want to pursue work with a government agency.

After passing an exam, applicants qualify for the certification by meeting the necessary professional work experience requirements. This is one year for an auditor with a master's degree, two years for an auditor with a bachelor's degree, and five years for an auditor with an associate's degree.

Certified Financial Services Auditor (CFSA) certification

The CFSA is an IIA certification for auditors with at least an associate degree who are pursuing work in the financial services field.

This certification requires the candidate to pass a test while also meeting the professional experience requirements. Same as the CIA and CGAP, it's one year for those with a master's degree, two years for those with a bachelor's degree and five years for those with an associate's degree.

Certified Information Systems Auditor (CISA) certification

The ISACA offers the CISA certification for professional auditors who audit, control, monitor and evaluate a company's, businesses, or agency's information technology and business systems. Candidates must pass an exam and have five years of professional experience auditing information systems to earn this certification.

• Auditing skills

Auditors utilize many different skills in their field of work. Many can be gained through education in accounting and auditing, while some can only be gained from professional experience in the industry.

Here are some of the most common and essential skills for auditors that make them qualified:

Analytical skills. Auditors must have really strong analytical skills. They need them to identify issues in a company's financial documentation, and also to suggest proper and effective solutions to certain problems and issues.

This requires an auditor to examine documentation, information, and data and then analyze their organization's protocol to hone in on issues that might give way to liabilities. They then make suggestions for improvements to mitigate any liabilities.

Organization. Organizational skills are critical for auditors. They often work with a wide variety of financial paperwork for several clients. Keeping financial documents in order is essential in terms of accuracy and efficiency while performing auditing tasks.

Communication. These skills are also crucial for auditors; they often work in large departments at companies with many financial employees, including other auditors, accountants, and senior financial officials. Auditors must be able to communicate clearly, concisely, and confidently with colleagues.

In addition, auditors also need to be able to communicate effectively with their clients. Auditors need very good listening skills because they must carefully listen to clients, financial professionals, and other accountants regarding important information and concerns.

Auditors must also be able to discuss the results of their research and evaluations in both written reports and verbally in important work meetings.

Mathematical skills. Advanced mathematical skills are not required for auditors; however, they must be able to analyze, evaluate, compare, and interpret facts and data. This requires a solid background of knowledge in accounting and statistics.

Attention to detail. Auditors must be accurate and correct in the financial tasks they perform, as well as in documentation tasks. This is to ensure clients or companies avoid potential penalties and clearly comprehend potential problems and liabilities.

All auditors need to be detail-oriented professionals who are careful when researching, accumulating and examining financial documentation and other critical forms of information.