Auditors are high-level accountants who investigate accounting processes and cash-flow records of firms, corporations, or other organizations to make sure the books are not cooked and everything corresponds to regulations and legal standards.
An auditor does not necessarily work for the IRS. They might be internal auditors of a company or experts conducting external audits, employed by public or private accounting firms.
As auditors are usually associated with revealing fraud, they might trigger people's guilt complex, which can make it a bit hard for them to make new friends. Contrary to popular belief, though, auditors are much less the lone wolves we make them out to be. They work in teams and meet a lot of interesting people through their work, such as leaders of different industries. Sometimes, they even crack a joke. They are just accountants who control other accountants, really.
Auditing is a stable career option with the possibility to earn above average income. So what if people think you are boring?
Accountants and auditors prepare and examine financial records. They ensure that financial records are accurate and that taxes are paid properly and on time. Accountants and auditors assess financial operations and work to help ensure that organizations run efficiently.Duties
Accountants and auditors typically do the following:
In addition to examining and preparing financial documentation, accountants and auditors must explain their findings. This includes preparing written reports and meeting face-to-face with organization managers and individual clients.
Many accountants and auditors specialize, depending on the particular organization that they work for. Some work for organizations that specialize in assurance services (improving the quality or context of information for decisionmakers) or risk management (determining the probability of a misstatement on financial documentation). Other organizations specialize in specific industries, such as healthcare.
Some workers with a background in accounting and auditing teach in colleges and universities. For more information, see the profile on postsecondary teachers.
The following are examples of types of accountants and auditors:
Public accountants perform a broad range of accounting, auditing, tax, and consulting tasks. Their clients include corporations, governments, and individuals.
Public accountants work with financial documents that clients are required by law to disclose. These include tax forms and balance sheet statements that corporations must provide potential investors. For example, some public accountants concentrate on tax matters, advising corporations about the tax advantages of certain business decisions or preparing individual income tax returns.
Public accountants, many of whom are Certified Public Accountants (CPAs), generally have their own businesses or work for public accounting firms. Publicly traded companies are required to have CPAs sign documents they submit to the Securities and Exchange Commission (SEC), including annual and quarterly reports.
Some public accountants specialize in forensic accounting, investigating financial crimes such as securities fraud and embezzlement, bankruptcies and contract disputes, and other complex and possibly criminal financial transactions. Forensic accountants combine their knowledge of accounting and finance with law and investigative techniques to determine if an activity is illegal. Many forensic accountants work closely with law enforcement personnel and lawyers during investigations and often appear as expert witnesses during trials.
Management accountants, also called cost, managerial, industrial, corporate, or private accountants, record and analyze the financial information of the organizations for which they work. The information that management accountants prepare is intended for internal use by business managers, not by the general public.
Management accountants often work on budgeting and performance evaluation. They also may help organizations plan the cost of doing business. Some may work with financial managers on asset management, which involves planning and selecting financial investments such as stocks, bonds, and real estate.
Government accountants maintain and examine the records of government agencies and audit private businesses and individuals whose activities are subject to government regulations or taxation. Accountants employed by federal, state, and local governments ensure that revenues are received and spent in accordance with laws and regulations.
Internal auditors check for mismanagement of an organization’s funds. They identify ways to improve the processes for finding and eliminating waste and fraud. The practice of internal auditing is not regulated, but The Institute of Internal Auditors (IIA) provides generally accepted standards.
External auditors perform similar duties as internal auditors, but are employed by an outside organization, rather than the one they are auditing. They review clients’ financial statements and inform investors and authorities that the statements have been correctly prepared and reported.
Information technology auditors are internal auditors who review controls for their organization’s computer systems, to ensure that the financial data comes from a reliable source.
Most accountants and auditors need at least a bachelor’s degree in accounting or a related field. Certification within a specific field of accounting improves job prospects. For example, many accountants become Certified Public Accountants (CPAs).Education
Most accountant and auditor positions require at least a bachelor’s degree in accounting or a related field. Some employers prefer to hire applicants who have a master’s degree, either in accounting or in business administration with a concentration in accounting.
A few universities and colleges offer specialized programs, such as a bachelor’s degree in internal auditing. In some cases, those with associate’s degrees, as well as bookkeepers and accounting clerks who meet the education and experience requirements set by their employers, get junior accounting positions and advance to accountant positions by showing their accounting skills on the job.
Many colleges help students gain practical experience through summer or part-time internships with public accounting or business firms.Licenses, Certifications, and Registrations
Every accountant filing a report with the Securities and Exchange Commission (SEC) is required by law to be a Certified Public Accountant (CPA). Many other accountants choose to become a CPA to enhance their job prospects or to gain clients. Many employers will often pay the costs associated with the CPA exam.
CPAs are licensed by their state’s Board of Accountancy. Becoming a CPA requires passing a national exam and meeting other state requirements. Almost all states require CPA candidates to complete 150 semester hours of college coursework to be certified, which is 30 hours more than the usual 4-year bachelor’s degree. Many schools offer a 5-year combined bachelor’s and master’s degree to meet the 150-hour requirement, but a master’s degree is not required.
A few states allow a number of years of public accounting experience to substitute for a college degree.
All states use the four-part Uniform CPA Examination from the American Institute of Certified Public Accountants (AICPA). Candidates do not have to pass all four parts at once, but most states require that they pass all four parts within 18 months of passing their first part.
Almost all states require CPAs to take continuing education to keep their license.
Certification provides an advantage in the job market because it shows professional competence in a specialized field of accounting and auditing. Accountants and auditors seek certifications from a variety of professional societies. Some of the most common certifications are listed below:
The Institute of Management Accountants offers the Certified Management Accountant (CMA) to applicants who complete a bachelor’s degree. Applicants must have worked at least 2 years in management accounting, pass a two-part exam, agree to meet continuing education requirements, and comply with standards of professional conduct. The exam covers areas such as financial statement analysis, working-capital policy, capital structure, valuation issues, and risk management.
The Institute of Internal Auditors (IIA) offers the Certified Internal Auditor (CIA) to graduates from accredited colleges and universities who have worked for 2 years as internal auditors and have passed a four-part exam. The IIA also offers the Certified in Control Self-Assessment (CCSA), Certified Government Auditing Professional (CGAP), Certified Financial Services Auditor (CFSA), and Certification in Risk Management Assurance (CRMA) to those who pass the exams and meet educational and experience requirements.
ISACA offers the Certified Information Systems Auditor (CISA) to candidates who pass an exam and have 5 years of experience auditing information systems. Information systems experience, financial or operational auditing experience, or related college credit hours can be substituted for up to 3 years of experience in information systems auditing, control, or security.
For accountants with a CPA, the AICPA offers the option to receive any or all of the Accredited in Business Valuation (ABV), Certified Information Technology Professional (CITP), or Personal Financial Specialist (PFS) certifications. The ABV requires a written exam, completion of at least six business valuation projects, and 75 hours of continuing education. The CITP requires 1,000 hours of business technology experience and 75 hours of continuing education. Candidates for the PFS also must complete a certain amount of work experience and continuing education, and pass a written exam.Advancement
Some top executives and financial managers have a background in accounting, internal auditing, or finance.
Beginning public accountants often advance to positions with more responsibility in 1 or 2 years and to senior positions within another few years. Those who excel may become supervisors, managers, or partners; open their own public accounting firm; or transfer to executive positions in management accounting or internal auditing in private firms.
Management accountants often start as cost accountants, junior internal auditors, or trainees for other accounting positions. As they rise through the organization, they may advance to accounting manager, chief cost accountant, budget director, or manager of internal auditing. Some become controllers, treasurers, financial vice presidents, chief financial officers, or corporation presidents.
Public accountants, management accountants, and internal auditors can move from one aspect of accounting and auditing to another. Public accountants often move into management accounting or internal auditing. Management accountants may become internal auditors, and internal auditors may become management accountants. However, it is less common for management accountants or internal auditors to move into public accounting.Important Qualities
Analytical skills. Accountants and auditors must be able to identify issues in documentation and suggest solutions. For example, public accountants use analytical skills in their work to minimize tax liability, and internal auditors use these skills to detect fraudulent use of funds.
Communication skills. Accountants and auditors must be able to listen carefully to facts and concerns from clients, managers, and others. They must also be able to discuss the results of their work in both meetings and written reports.
Detail oriented. Accountants and auditors must pay attention to detail when compiling and examining documentation.
Math skills. Accountants and auditors must be able to analyze, compare, and interpret facts and figures, although complex math skills are not necessary.
Organizational skills. Strong organizational skills are important for accountants and auditors who often work with a range of financial documents for a variety of clients.
Tell us your goals and we'll match you with the right jobs to get there.
As you move along in your career, you may start taking on more responsibilities or notice that you've taken on a leadership role. Using our career map, an auditor can determine their career goals through the career progression. For example, they could start out with a role such as accountant, progress to a title such as senior accountant and then eventually end up with the title regional controller.
Tell us your goals and we'll match you with the rights job to get there.
|Job TitleCompany||Company||Start Date||Salary|
Post Closing Auditor-Nationwide/Remote
Post Closing Auditor-Nationwide/Remote
Radian Group Inc.
Radian Group Inc.
Use Zippia's Salary Calculator to see how your pay matches up.
Designing and figuring out what to include on your resume can be tough, not to mention time-consuming. That's why we put together a guide that is designed to help you craft the perfect resume for becoming an Auditor. If you're needing extra inspiration, take a look through our selection of templates that are specific to your job.
Learn How To Write an Auditor Resume
At Zippia, we went through countless Auditor resumes and compiled some information about how best to optimize them. Here are some suggestions based on what we found, divided by the individual sections of the resume itself.View Detailed Information
Hispanic or Latino
Philadelphia, PA • Private
Evanston, IL • Private
Los Angeles, CA • Private
Vestal, NY • Private
Villanova, PA • Private
San Diego, CA • Private
Waltham, MA • Private
Farmingdale, NY • Private
Boston, MA • Private
Stony Brook, NY • Private
Learn the audit process from planning to audit report form a Certified Public Accountant (CPA)...
Payroll calculations - federal income tax, social security, Medicare - Payroll journal entries posted to ledger accounts...
Be a Pro Internal Auditor. This is the only course with 1-on-1 online meeting with the instructor & e-mail support...
The skills section on your resume can be almost as important as the experience section, so you want it to be an accurate portrayal of what you can do. Luckily, we've found all of the skills you'll need so even if you don't have these skills yet, you know what you need to work on. Out of all the resumes we looked through, 32.3% of auditors listed internal audit on their resume, but soft skills such as analytical skills and communication skills are important as well.
Some places are better than others when it comes to starting a career as an auditor. The best states for people in this position are New Jersey, Connecticut, Rhode Island, and New York. Auditors make the most in New Jersey with an average salary of $75,985. Whereas in Connecticut and Rhode Island, they would average $69,241 and $68,250, respectively. While auditors would only make an average of $68,248 in New York, you would still make more there than in the rest of the country. We determined these as the best states based on job availability and pay. By finding the median salary, cost of living, and using the Bureau of Labor Statistics' Location Quotient, we narrowed down our list of states to these four.
We've made finding a great employer to work for easy by doing the hard work for you. We looked into employers that employ auditors and discovered their number of auditor opportunities and average salary. Through our research, we concluded that RGIS Inventory Specialists was the best, especially with an average salary of $74,187. Ernst & Young follows up with an average salary of $85,772, and then comes KPMG with an average of $86,828. In addition, we know most people would rather work from home. So instead of having to change careers, we identified the best employers for remote work as an auditor. The employers include Anthem, Thermo Fisher Scientific, and Performant Financial