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Get to know about the duties, responsibilities, qualifications, and skills requirements of an auditor. Feel free to use our auditor job description template to produce your own. We also provide you with information about the salary you can earn as an auditor.

 

Who is an Auditor?

An auditor is someone who is authorized to examine and confirm whether financial statements are accurate, and also ensure that firms are compliant with tax regulations. They safeguard businesses from fraud, identify the flaws in accounting procedures and occasionally perform on a consulting basis and assist companies in identifying ways to increase efficiency in their operations. Auditors work in a variety of roles across different sectors.

 

An auditor can be described as an expert independent that performs audits to ensure the credibility and accuracy of financial information contained in the financial statements prepared by directors of the business. Audits can also be requested by other parties who would like to conduct transactions with the company. The job of these experts is to offer an objective and professional opinion regarding the affairs of the company. Audits are the verification of a company’s financial records and their representation in financial reports.

An auditor is a person who checks the authenticity of business transactions recorded. These experts are needed to ensure that the procedures are running following a plan and that the financial statements prepared by an organization accurately reflect its financial and operational results. This professional is an individual that works in a firm to carry out an audit. To perform the role of an auditor, an individual is required to be certified by the authority that regulates accounting and auditing or possess specific requirements. In general, to be an external auditor for the business, an individual is required to have a certification of practice issued by the authority that regulates. An auditor must make a statement on how the accounting profession has provided in the annual financial report and financial statement reporting accurate information regarding the company’s activities. To form an opinion on the performance of the business, the auditor must collect sufficient and relevant evidence through testing and questionnaires, conducting checks, and the. Auditors must formulate an opinion on whether the financial statements and annual reports are free of technical or fraud.

A typical audit has two purposes. The first is to determine if the financial management has taken every step to verify the authenticity of their financial reports. The second is to get a better understanding of the activities of the company throughout reporting and to evaluate the potential risks that could impact the financial position of the company as well as the steps or measures taken by the business to mitigate the risk. Auditors must determine the credibility of financial statements, and financial results, and determine the company’s compliance with requirements for financial reporting.

 

They are experts who examine the financial records of corporations and other organizations to verify the legitimacy and validity of the financial records of the business. An auditor is a finance specialist who analyzes the company’s financial records to make sure that their records are correct and clear.

These are certified professionals who review companies’ financial records to identify errors or discrepancies. They make sure that businesses comply with tax laws and regulations.

There are types of auditors with specific roles.

These types include;

• External auditor Statutory auditor

It is an independent company that is employed by the client who is subject to audit to give an opinion as to whether the financial statements of the company are not contaminated by material errors that are the result of mistakes or fraud. For companies that are publicly traded external auditors could be also required to give an opinion on the effectiveness of internal controls on financial reporting. External auditors could also be employed to carry out other procedures agreed upon or not related to financial reports. The most important thing is that external auditors, even if they are employed to be paid by the business that is being audited, must be treated as independent.

• Internal auditors

They are hired by organizations they audit. They are employed by public agencies (federal, state, and local) as well as for publicly traded corporations; as well as for non-profit businesses across all sectors. The internationally recognized standard-setting body for the field can be found in the Institute of Internal Auditors – IIA. Internal auditing is an independent auditing, objective assurance, and consultancy process designed to enhance the efficiency of an organization’s operation. It aids an organization to achieve its goals by providing an organized, disciplined approach to assess and enhance the efficiency of the risk management, control, and governance practices”

 

Auditor Job Description

Below are the auditor job description examples you can use to develop your resume or write an auditor job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.

The duties and responsibilities of an auditor include the following:

• Collating, crosschecking, and then analyzing the data in the spreadsheet.
• Reviewing the company’s financial accounts as well as controlling financial management.
• Assessing the financial risk of an organization and establishing its extent of them.
• Ensuring the accuracy of financial reports and records are up to date.
• Ensuring that assets are secure at all times.
• Recommending modifications that are required by the company.
• Pinpointing the places where routine processes are not functioning and then implementing the modifications.
• Preparing financial statements, reports, and other documents for those who are part of the company.
• Collaborating with senior leaders in the company and providing your findings and suggestions to them.
• Ensuring that procedures, policies regulations, legislations, and regulations are adhered to and observed.
• Reviewing the pay of employees.
• Ensuring that the internal auditor’s audits are independent and impartial.
• Evaluating the financial operation and making sure that the business is effectively run.
• Tracking the flow of cash from beginning to end and making sure that the funds of an organization are correctly accounted for.
• Establishing whether financial statements conform to generally accepted accounting practices (GAAP).
• Scrutinizing accounting data along with financial records as well as operational aspects of the business.
• Keeping detailed notes about every stage of the process is also known as an audit trail.
• Documenting findings in a report that appears as a preface on financial statements.
• Sending private reports to managers and regulators as well.
• Reviewing accounts of every publicly traded company in compliance with official auditing
• Developing official procedures through the International Auditing.
• Providing independent, in-house, and objective reviews of business operations and financial actions, including corporate governance.
• Presenting findings, along with suggestions on how to run the company, to the top management.
• Reflecting the financial situation of the company accurately and fairly by giving an impartial and public opinion in the company’s financial statement.
• Keeping and scrutinizing documents of government agencies as well as of private companies or individuals that perform tasks that are subject to government regulations or taxation.
• Ensuring that revenue is earned and spent following the laws and regulations.
• Spotting fraud and embezzlement practices by examining accounting controls at the agency and analyzing the risk management.
• Offering guidance to the company’s directors and financial managers on improving the efficiency and performance of the company.
• Verifying whether the business prepares the financial documentation following the law and regulations and that the documents and reports are kept promptly and correctly maintained.
• Understanding, reviewing, and evaluating certain management controls, policies, practices, and actions that are a reflection of the financial position of the organization.
• Helping more experienced auditors in identifying the areas where there are risks to be aware of.
• Controlling certain processes and procedures during their execution by asking company representatives and accountants various formal and informal questions in either a written or verbal form regarding the business’s activities.
• Writing letters to creditors to confirm the amount of debt the company owes in preparation for final audit reports following the completion of the audit test.
• Sharing audit findings with a fair and objective view
• Discussion of results with company directors, managers, and accountants;
• Developing suggestions to rectify the mistakes of the company and improve its business processes.
• Introducing new procedures and policies, enforcing compliance to the requirements, and suggesting actions that are needed.
• Updating auditing programs and questionnaires.
• Keeping a professional level of knowledge by attending educational classes, seminars, and reading professional publications in accounting, finance, and management, and more.
• Enquiringthe person who is authorized to gather evidence that supports the information and figures in the financial statements.
• Complying with audit standards established by the government and other regulatory organizations.
• Upholding ethical codes–confidentiality, integrity, competency, and objectivity.

 

Qualifications

• Bachelor’s degree in finance, business, or accounting.
• Certified Public Accountant (CPA) certification
• Master’s degree in business, accounting, finance, and other related fields.
• Ability to apply accounting software practically.
• Ability to keep up-to-date with developments and changes in auditing.

 

Essential Skills

• Communication Skills

This is an extremely crucial skill to possess as an Auditor and there is no likelihood of success as an auditor if you do not have efficient communication skills. As an auditor, one must have confidence and social skills simultaneously. You might be great at preparing reports, but when you are unable to effectively communicate when you have to present your findings, all the effort you put into it could be futile. In the case of a successful auditor, it’s about communicating thoughts, and ideas in meetings, presentations, interviews, and negotiations with executives and clients of the audit.

• Emotional intelligence

While auditors conduct the work they do with a calm mind doesn’t mean that their clients are in the same spot. If they’re upset over sloppy financial records or worried about finding a fraud, customers require the steady hand, that of an auditing professional who is skilled at balancing their emotions and ensuring that the goal–an accurate and comprehensive audit is always in sight. Emotional intelligence can improve the quality of audits. The conclusion is that the moderated influence of emotional intelligence is an important factor that helps to mitigate the impact of different kinds of pressures on auditors’ judgments.

• Decision-making skill

In your role as an auditor, you need to be able to make sound, independent decisions. Your choices must be free of personal interest and based on a thorough examination of the business’s activities.

• Business acumen and critical thinking

This is akin to the objective evaluation and analysis of the facts and information found in an audit. These can provide actionable insights or, in some cases the questions that motivate them.

• Interpersonal skills

Despite the technical expertise knowledge, compliance expertise, and the requirement for numerical precision, auditing, in the end, is also very much a matter of people, working with all kinds of clientele in all sorts of circumstances. To be a successful auditor, excellent interpersonal abilities are essential. Empathy, for instance, helps an auditor more effectively to understand the viewpoint of the client when the audit process progresses. Another aspect of having excellent interpersonal skills, particularly for auditors, is being able to hear. Certain financial professionals use the term “80/20 principle,” named for the optimal ratio of time devoted to listening and not talking. Active listening, which aims to be able to comprehend and understand can be beneficial in audit teams as well as within the business.

• Attention to Details

As an auditor, your role is to examine and verify that everything is as it ought to be. This means paying close attention to the smallest of details. You should pay attention to the smallest details to ensure that you do not miss important details that could cost your company money.

 

How to Become an Auditor

• Education

To become an auditor you must have at the minimum an undergraduate accounting degree. Knowing how to make use of spreadsheets and databases could be beneficial. People who are interested in this field need to have excellent communications skills as well as a thorough understanding of finance and economics. A master’s degree in business administration or accounting and other related courses will also assist those who are interested in becoming auditors make a mark in the field. These degree programs offer students an excellent level of instruction in the accounting process. In addition to these, a master’s degree in accounting may prepare students for the CPA test, preparing them for tough and competitive job opportunities in auditing.

• Work Experience

People who are interested in the path to becoming an auditor must take advantage of every opportunity to gain experience in the real world. While pursuing their career goals, they could perform various auditing and accounting positions at a junior level. At the beginning of their career, their primary responsibilities could be providing support to several clients. As they progress in their career and acquire the necessary abilities that allow them to prepare for the next stages of their career as an auditor. With around five years ‘ experience, auditors can advance to higher-level positions like auditor and budget director. A decade of experience and an advanced diploma can assist auditors in aspiring roles to distinguish themselves for the leadership positions they hold.

• Expand Knowledge and Skills

The academics at colleges and the practical experience are essential to help auditors achieve their goals in their careers. Auditors are also required to be aware of current trends in the industry. They can improve their skills and knowledge by staying up-to-date with the most recent financial and business information. Participating in professional associations like those of the Institute of Internal Auditors (IIA) and the American Institute of CPAs (AICPA) can assist auditors to keep up-to-date with the latest standards and give opportunities to network and professional growth.

 

• Certification and Licensing

Auditors need to be licensed by the state where they will work, and requirements differ. A job with an organization that is publicly traded requires being  CPA and then getting an official state license. After being certified as an CPan auditors are often required to undergo additional training to enhance their skills for prospective employers. For instance, the IIA offers courses in a variety of areas of auditing and professional practice for internal auditors who have at least two years of experience. These courses allow internal auditors to acquire new skills and understanding to help them pursue better career options.

 

Where to Work as an Auditor

• Government agencies (federal and state, as well as local)
• Publicly-traded corporations
• Non-profit organizations
• Accounting companies
• Consulting companies

 

Auditor Salary Scale

An individual who works as an auditor in Nigeria typically earns 157,000 NGN per month. Salary ranges from 157,000 NGN to 307,000 NGN.

The median Auditor’s salary in the United State area is $62,044 per annum. However, the range of salaries typically falls between $56,381 to $68,239 per annum.

Business and Finance

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