How to Become a Auditor

About Auditor

If you have always been interested in the finances and inner functioning of a company, pursuing a career as an auditor is the right choice for you! Auditors are the professionals that prepare and examine financial records. They ensure that the financial records of a company are accurate and that taxes are paid properly and on time. They also assess financial operations and work to help ensure that companies run efficiently. Auditors have to look after multiple roles from examining financial statements to comply with laws and regulations, computer taxes, prepare tax returns to maintain financial records. These are just a few tasks that you, as an auditor would have to take care of. It is an intensively complex career path and involves multiple job responsibilities. Sometimes the specialisation of an auditor totally depends upon the type of organisation they work for.  Some of the auditors specialise in assurance services, risk management, while, others specialise in more specific industries like education, healthcare.

Eligibility to become Auditor

Becoming an auditor is a step-by-step process and candidates are required to follow the given steps to make a career in the same.

Step 1:

• To become an auditor, the candidate must have a bachelor’s degree in Accounting. However, some employers prefer candidates with a relevant master’s degree in accounting or an MBA.
• Candidates can also take up a course in computer accounting software such as Tally or other related diplomas.

Step 2:

• Obtain relevant certifications. Most of the companies have made it mandatory for auditors to have certifications such as CA, ICWA, CS.
• There are certain auditor certifications provided by international audit associations such as the Institute of Internal Auditors (IIA), Information Systems Audit and Control Association (ISACA) etc which are globally accepted.
• Also, CISA qualified Auditors have been recognized as qualified to conduct Systems Audit by Reserve Bank of India (RBI), Ministry of Information Technology (MIT), National Stock Exchange, Comptroller and Auditor General of India (C&AG).

Types of Job Roles Auditor

Budget Analyst: Budget analysts are the [professionals that help public and private institutions organize their finances. They prepare budget reports and monitor institutional spending. They mainly work with project managers to plan the company's budget.

Financial Analyst: Their job is to report and prepare financial forecasting, analyse financial data and create financial models. Financial analyst work very closely with the accounting team to ensure accurate financial reporting and decision support

Personal Financial Advisor: Personal financial advisors are the people who assess the financial needs of individuals and help them make wise decisions regarding their financial investments. Advisors help clients plan for short- and long-term goals, such as meeting education expenses and saving for retirement through investments. They usually invest their clients' money based on the client's' decisions and to make their investments profitable. Many personal financial advisors spend a lot of time marketing their services, and they meet potential clients by giving seminars or participating in business and social networking. Networking is one of the most important aspects of the job of a personal financial advisor.

Financial Managers: Their job is to manage the financial health of a company or an organization. They make financial reports, develop strategies to achieve the long-term goal of the organization. They can be found in banks, insurance companies, financial firms and others. They also assist executives in decision making. Therefore, it is very important for financial managers to have good communication skills and analytical thinking and decision-making skills.

Management Analyst: Management analyst are also known as management consultants and their prime objective is to improve the company's efficiency. The work closely with financial managers. They mostly specialise in certain areas like inventory, finance, healthcare, telecommunications and others. They usually work on a contractual basis rather than working full time.

Employment Sector/Industry for Auditor

Some of the major duties of an Auditor are as follows:

• They examine the financial statements of an organisation to ensure that they are accurate and comply with the laws and regulations of the country.
• To prepare tax returns and ensure that the companies taxes are paid on time and in full.
• Organize, maintain and update the financial records of the company/organisation from time to time 
• Assess financial operations and offer financial practices recommendations to management
• Suggest ways to reduce costs, enhance revenues, and improve the profits of an organization

Career Opportunities for an Auditor

Auditors are required in all the major sectors Both government and private firms require an auditor to manage their finances. Let’s look at some of the employment opportunities available for an auditor:

• Government
• Finance and Insurance
• Public Sector Undertaking (PSUs)
• Accounting, Tax Preparation, Bookkeeping and Payroll Services
• Management Consultancy

Top Recruiting Companies for an Auditor

Check out the top recruiting companies for an auditor below:

• ICICI Group
• LIC Finance Limited
• Bajaj Capital Limited
• Indiabulls Housing Finance Limited
• L&T Finance Limited
• SBI Capital Markets Limited (SBICAP)
• National Stock Exchange
• Auditor General of India
• Deloitte
• KPMG
• Ernest & Young
• PWC

Pay Scale/Salary of Auditor

The salary of an auditor in India depends whether they are working in government or private sector. An auditor who is employed with the Government of India has an average salary of Rs.4,00,000 to Rs.5,00,000. However, with a better job profile and adequate experience, the salary packages also increase.

Auditors working with private companies in India tend to earn more. The average salary of an auditor in India is between Rs. 6,00,000- Rs 8,00,000. With increased professional experience and the right industry, an auditor can earn great salaries. Additionally, many full-time auditors receive great benefits such as healthcare, vacation time, retirement plans and more.

Note:

The payscales that have been mentioned above are just for reference purposes and the actual salaries that are offered to auditors in the industry would depend on a number of variable factors such as academic and professional record, area of employment, job profile and the economic stability of the country among much more.

Books & Study Material to Become Auditor

Reading books is always one of the best ways to learn new information and enhance your knowledge. If you’re considering getting a degree to become an auditor, these can help you understand more about the field and increase your expertise. Some of the most popular books for an aspiring auditor are listed below:

• Auditing for Dummies by Maire Loughran
• Report Writing for Internal Auditors by Angela J. Maniak
• The Internal Auditing Handbook
• The Internal Auditing Pocket Guide: Preparing, Performing, Reporting and Follow-Up by J.P. Rusell

Pros of becoming a Auditor

• If your an auditor it is all about crunching numbers and analyzing costs that employers need. This gives you a much clearer career path as compared to others.
•  The job prospects for an auditor are to expand in the coming years. As long as people need help with taxes and as long as businesses exist, there will be a need for auditors.
• Once an auditor has adequate experience and is a part of companies decision making they enjoy very high salary packages and other perks.
• You get an opportunity to move from client to client and from office to office applying your skills and knowledge to a new set of circumstances which helps you build experience and expertise.

Cons of becoming a Auditor

• Unlike other industries, the learning doesn’t stop for an auditor. To progress in their career, the auditor will require to upgrade skills and certifications from time to time.
• The work can be dull sometimes as it involves a lot of math and calculation which can be very boring sometimes.
• When you are responsible for an organization’s finances, there is bound to be some pressure which can lead to stress.