what is an auditor?
As an auditor, you are accredited to assess, evaluate and ensure the accuracy of an organisation's financial accounts. You also guarantee tax compliance and validate the business actions of your employer to ensure the company is running smoothly.
In an advisory role, you assist your employer in identifying cost-saving measures and risk-aversion methods that improve business success. As an economic specialist, you assess a company's financial health and provide recommendations to improve revenue and minimise expenses.
All companies require an internal or external auditor to assess financial soundness and ensure compliance with industry regulations. Auditors also work for the government and public corporations to ascertain the proper handling of funds and uncover embezzlement or misappropriation schemes.
In the private sector, auditors act as consultants who ensure financial records mirror the state of an organisation. You also provide unbiased evaluations and recommend methods of improving a company's current practices and processes.
Generally, your objective as an auditor is to assist companies in improving operational productivity, mitigating risk and ensuring compliance. As part of a company's accounts department, you can work in the banking and finance sectors or in industries as diverse as manufacturing, mining or production.view jobs
average auditor salary
The average earnings of an auditor in Australia is $83,000 per year. The remuneration package of auditors varies based on various factors. The lowest salary of an auditor is $75,000 per year due to minimal experience and educational qualifications. The highest-paid auditors take home over $90,000 annually due to experience and expertise.
how to increase your earnings as an auditor
Your earnings as an auditor fluctuate based on various factors. As a junior auditor, you start with a lower salary since you have minimal experience. Employers pay a higher salary to auditors with a few years of experience. Having additional qualifications and being a member of a professional body highlights your credentials, and you can negotiate a higher salary.
The company you work for also determines your remuneration prospects. Working for a large company increases your earning potential due to the unlimited resources available. In large organisations, you have complex auditing responsibilities and work with a large team to handle the company's finances. In a small company, you earn a lower salary due to the limited resources available to small organisations. You also handle fewer tasks due to the minimal financial transactions.
Want to know what you will earn as an auditor? Check out what you are worth with our salary checker.
types of auditors
Auditors branch out into various specialisms in their auditing career. For instance, you can become an internal auditor. When you are an internal auditor, your responsibilities are dictated by the employer. Your role is to review the performance of employees and ensure financial records comply with the company's standards and accounting systems. You also conduct risk assessments and assist managers in making sound business decisions.
As an external auditor, you carry out mandatory statutory or financial audits to determine the accuracy of records. Your responsibility is to ensure the financial records accurately represent a company's financial situation. The report you prepare provides unbiased evidence of the integrity of a company to its stakeholders.
In forensic auditing, you investigate illegal activities and fraud in a company. You help organisations determine protection measures to prevent embezzlement and fraud. Some auditors also become tax auditors, who verify the integrity of a company's tax returns. You determine whether a company correctly estimated its tax obligations.
working as an auditor
Becoming an auditor is an exciting career with diverse responsibilities and work environments. Read on to find out how you spend your time as an auditor and whether the role might be something you enjoy.
education and skills
As an auditor, you require educational qualifications to excel in your role. Pursue a bachelor's degree in business (accounting) or a bachelor of accounting. The accredited degree courses take three years and prepare you for your role. You can enhance your employability with a postgraduate degree like a master of professional accounting.
Aside from education, you need relevant work experience and certifications. Join internships and work in accounting roles to gain relevant knowledge and improve your skills. To work as an auditor in Australia, you are required to complete certifications from the Institute of Chartered Accountants Australia or Certified Practising Accountants Australia. Obtaining a membership with the Australian Securities and Investments Commission (ASIC) is also mandatory. Internal auditors can get certifications, such as the Certified Internal Auditor (CIA) from the Institute of Internal Auditors of Australia.
auditor skills and competencies
Can you combine your qualifications with hard and soft skills? Then you are likely to thrive in your career as an auditor. Some of the important skills include:
- analytical skills: your job is to identify issues in documentation and provide effective solutions. To review the financial records and analyse company processes, you need exceptional analytical skills to investigate and interpret the information at hand.
- organisation skills: in auditing, you work with a range of financial records, and sometimes you maintain documents from multiple clients. Strong organisational skills help you sort documentation and keep paperwork to provide accurate results.
- communication skills: as an auditor, you work closely with clients and the upper management. Therefore, it is crucial to have good communication skills. You should understand your client's needs and concerns to provide solutions. Sometimes, you present your audit findings or write reports, which require proper communication skills.
- maths skills: in auditing, you will spend most of the day crunching numbers and analysing records to interpret facts and figures. If you combine maths skills, proficiency in data analysis and accounting skills, you can succeed in your auditing career.
- attention to detail: mistakes in auditing have severe consequences, including fines and legal actions. You should be attentive to details when examining accounting records to help your clients avoid penalties and liabilities.
FAQs about working as an auditor
Here, you will find the answers to the most frequently asked questions about the profession of an auditor.