Any organisation, big or small, needs an Auditor to ensure its funds have been rightly accounted for. Auditing experts review and verify financial statements and records to ensure businesses comply with tax laws, accounting standards, internal control systems, and other government and industry regulations.
An Auditor has a crucial role in monitoring an organisation’s accounting process. Given the criticality of the functions these personnel have, it is worth understanding what their job entails and the responsibilities they carry.
Who is an Auditor?
An Auditor’s prime responsibility is to acquaint clients with the legalities of financial policies and steer them towards correct financial decisions. They help businesses maintain financial accountability, ensuring that organisations run smoothly. In addition, they serve as consultants, assisting corporations in identifying ways to improve operational efficiency.
What are the types of Auditors?
- External Auditors: An External Auditor conducts an audit in accordance with regulatory standards. They are usually not a permanent employee in an organisation. External Auditors must provide objective judgment and an independent report on the company’s financial transactions.
- Internal Auditors: Internal Auditors are in charge of developing effective internal control systems and devising strategies for avoiding fraud and compliance difficulties. They create efficient risk management strategies for their company and detect discrepancies in reports before conducting an external audit.
- Forensic Auditors: Forensic Auditors are involved in detecting fraud or criminal activities. They thoroughly review accounts and devise new mechanisms to avoid further fraud relating to the company’s finances.
- Government Auditors: Government Auditors are specialists who review the financial records of government bodies and private companies to ensure revenue earning and spending are done according to government laws and regulations.
Job roles and responsibilities of an Auditor
An Auditor is entrusted with several challenging responsibilities. They have to perform various analytical tasks relating to a firm’s financial health. Here’s a list of the roles they carry out:
- An Auditor is responsible for verifying the efficiency and effectiveness of corporate internal controls implemented to accomplish business goals. For example, Auditors detect and investigate internal frauds that are apparently trivial.
- An Auditor’s job role involves the computation of taxes. They also assess the tax liability from time to time and file tax returns.
- Unlawful lending and loan operations can lead to penalties and licence cancellation. An Auditor, in such cases, checks to see if the companies have appropriately documented and collateralised their loans. They also check if all the borrowing and lending transactions adhere to legal norms.
- Auditors are in charge of creating an independent audit report considering the company’s financial accounts. The audited books of accounts must adhere to all the laws as applicable.
- An Auditor examines the substance of the financial statements, including disclosures, and whether the financial statements accurately depict the organisation’s core activities.
Salary of an Auditor
Auditors are necessary for all organisations as they perform crucial tasks related to inspecting financial records. Hence, the career path can be challenging as well as rewarding. The salary of an Auditor in India ranges between 1-9 LPA, depending upon experience. Senior Auditors earn up to 17.5 LPA, with 9.5 LPA being the average.
How to become an Auditor in India?
If you have a knack for finance and accountancy and like taking up challenges, a career as an Auditor might be the correct choice for you. Here is how to become an Auditor in India:
- Enrol in a relevant stream of study after completing your Higher Secondary education. For example, B.Com, Accountancy, BBA, Finance, Economics or any other related stream.
- After pursuing a Bachelor’s degree in any of the fields mentioned, you can take the Certified Internal Auditor (CIA) course or take the CA exam from the Institute of Chartered Accountants. If you want to practice globally, you can sign up for the ACCA course, also known as the global Chartered Accountant course.
- Take up relevant internships from reputed firms during your course of study. This will ensure you have a holistic learning experience before becoming certified.
The importance and need for qualified Auditors will never diminish since auditing is mandatory for all organisations. If you find finance and accounting interesting, the career path of an Auditor will appeal to you. Qualified Auditors are in demand, not only in India but worldwide.
Check out the ACCA course by Zell Education to earn a globally-recognised credential that lets you practice accounting in India and abroad. This course will help you tread this career path in as many as 180 countries. Enrol today and make the most of 100% placement support from Zell Education.
What qualifications do I need to be an Auditor?
You need to have a Bachelor’s degree in accounting or any related field with a major in accounting. After completing your Bachelor’s, enrol in any certification course like ACCA or CA.
How many years does it take to become an Auditor?
After pursuing a Bachelor’s degree for three years, if you enrol in the ACCA course, you’ll need approximately two years more to become a certified Auditor.
Is auditing a good career?
Auditors are a need worldwide. Organisations of all sizes need Auditors at all points of time to detect fraud and adhere to compliance standards and legal obligations. Hence, auditing is undoubtedly a good career option.
Are CA and Auditor are same?
CA or Chartered Account is a course that can help you become an Auditor. You can only become an Auditor in India if you are a qualified Chartered Accountant.