How to Become an Auditor? – An Ultimate Guide

Shape Image One
How to Become an Auditor? – An Ultimate Guide

Introduction

If you’ve always been interested in finance and the internal dynamics of a business, becoming an auditor is the appropriate path for you. The preparation and inspection of the financial records of various businesses, workplaces, etc., is the responsibility of auditors. Companies in many sectors use auditors to safeguard not just the company but also shareholders and employees. 

In addition to having a practical understanding of statistics, mathematics, finance, and accounting, auditors also have significant experience in tax law and financial regulation. People who desire to work in the diverse field of accounting and finance as auditors might want to get an advanced degree in accountancy to assist them in developing essential abilities.

Who is an Auditor?

The experts who are in charge of organizing and reviewing the financial records of various businesses, workplaces, etc., are called auditors. They ensure that the business they work for pays timely taxes and that its financial records are accurately maintained. Finding fraud, suggesting changes to accounting controls, and assisting organizations in adhering to financial and banking regulations while guaranteeing effective and efficient financial management are all duties of an auditor. For financial transactions, they collect proof. The objective is to eliminate any potential fraud and misstatements. Furthermore, rigorous audits deter fraud by deterring it from happening in the first place. The auditor must adhere to auditing standards and present an accurate and fair assessment of the company’s financial statements.

Types of Auditors

Based on their position & length of service, the following categories of auditors can be characterized:

Internal Auditors – The auditors in the company’s internal staff carry out internal audits. They are in charge of creating effective internal control structures and coming up with solutions to fraudulent and compliance problems. They also audit all of the systems, procedures, and internal controls. Internal auditors are directly accountable to senior management.

External Auditors – Professionals in external auditing do not work for a specific company. Instead, they are unbiased, external, independent bodies that give the shareholders an audit report. They have to abide by the auditing guidelines established by the International Auditing and Assurance Standards Board and the IFAC committee. When conducting a department-focused audit, an external auditor may also need to cooperate with other departments, such as technology or operations.

Government Auditor – Government auditors, check the financial standing of both public and commercial organizations that engage in operations related to laws, taxes, foreign exchange, etc. They also assist the government with cost research and budgeting. To maintain compliance, they monitor government revenue and spending. Most government auditors work for auditing companies that solely work with the public sector. They carry out an excellent audit that makes their clients responsible for using public resources following the law & regulations.

Forensic Auditors – They are among the most expertly trained auditors. In terms of their duties, forensic auditors are similar to external auditors, but the focus of their audit is far more focused. Law enforcement authorities want forensic auditors to thoroughly examine financial data that may include evidence of fraud. A party may be accused of theft, fraud, or any other type of criminal action by the forensic auditor conducting the audit.

How to become an auditor after B.Com?

Following these helpful guidelines can help you learn how to become an auditor:

Get an Advanced Degree – For an auditor job, having a finance or accounting degree is crucial because many firms mention it as one of their basic criteria. It might be useful to be adept with spreadsheets and databases to become an auditor. A master’s degree in business administration or accounting earned online might make an aspirant auditor stand out from the competition. These degree programs give students extensive training in accounting principles and data analysis. To pursue a bachelor’s degree in finance or accounting, many colleges require that you complete your math A-levels.

Obtain industry experience – Anyone who wants to learn how to become an auditor should seize every chance to get hands-on experience. They could work in various junior-level accounting and auditing jobs as they pursue their professional goals. As they gain experience, they develop vital abilities that can get them ready for the following stages of their profession as auditors.

Keep increasing your Knowledge & Expertise – Auditors need both formal education and practical experience to succeed in their careers. Following recent business and financial news might help them increase their knowledge and abilities. Joining organizations like the Institute of Internal Auditors (IIA) and the American Institute of CPAs (AICPA) may assist auditors in remaining up to date with standards and offer networking and professional development opportunities.

Get Your Certification & License – The standards for certification of auditors differ depending on the state where they will be employed. Getting a CPA before acquiring a state license is necessary to work for a publicly listed corporation. Getting your CPA license is often a wise professional step, and many companies will pay for the Uniform CPA Examination. For internal auditors with more than two years of experience, IIA also provides training in several professional and auditing disciplines. Internal auditors may benefit from these courses by gaining new abilities and information that will help them compete more successfully for employment prospects.

How to become an auditor after the 12th?

After completing class 10, students can enroll in courses that would help them become auditors in India, such as those in accountancy, mathematics, finance, and economics. The procedure for becoming an auditor after class 12 is covered in detail in the section that follows:

  • You can enroll in any stream in your 11th and 12th standards, including science, commerce, or another option.
  • One will need to pass the admission test and finish any degree program relevant to accounting, finance, and economics after completing class 10+2.
  • Accounts, Finance, Mathematics, and Economics, must be taken in class 12 with a minimum grade of 50% on the class 12 exams.
  • The graduates will complete a year-long internship upon graduation, after which they can continue their studies to learn more about the profession of auditing.
  • After graduating, students can pursue various courses, including an M.Com in Accounting and Taxation and an M.Com in Accounting and Auditing.

Roles & Responsibilities of an Auditor

Prepare an audit report – The primary responsibility of an auditor is to compile a report on the accounts and financial statements he has reviewed and to submit it to the company’s shareholders. The credibility of the financial statements is increased by such an opinion of the auditor. It is due to the fact that it gives the auditor a reasonable level of assurance that the financial statements accurately reflect the company’s financial situation.

Make a Thorough Inquiry – Every auditor has a responsibility to request access to the company’s books of accounts, vouchers, and other information and justification. Additionally, an auditor can find out if the loans and advances made by the business using security have been adequately secured.

Support Branch Audit – A branch office’s accounts may be audited by: 

  • A company’s auditor
  • In the event of a foreign branch, the company’s auditor, or any other qualified individual designated in accordance with the laws of that nation.

As a result, a branch auditor must write a report on the branch’s finances that he has studied and submit this to the company’s auditor. 

Fraud Reporting – A company auditor may run into fraudulent scenarios while conducting his job. The auditor must notify the central government of these circumstances within 60 days of becoming aware of them.

Assist in an Investigation – Investigation is the methodical, critical examination of a set of business records. Such an investigation is carried out after a firm defect has already occurred, and its goal is to identify the cause of the problem and the responsible party. An auditor’s responsibility is to support the cops conducting this inquiry.

Adhere to the Auditing Principles – Confidentiality is one of the fundamental rules governing an audit. As a result, the auditor must keep the information he has collected in the strictest confidence while carrying out his duties. Without his previous consent, he should not reveal the client’s information.

Salaries of an Auditor’s

The average yearly salary for auditors in the US is $63524, according to Indeed’s research of 2022. Professionals with less than a year’s experience make, on average, $59015 annually. The average yearly salary for those with ten or more years of experience is $77092. While USAA pays up to $173867 annually for components, DISYS pays up to $219706 annually for talent. The US Air Force pays audit specialists $114770 a year.

The range of an auditor’s compensation in India is INR 3,00,000/- to 8,00,000/-. The range changes depending on the type of position an auditor has. Most students choose to audit because it generally pays more than any other career does altogether.

How to become an Auditor in India?

A job as an auditor may be the best fit for you if you have a passion for finances and accounting and enjoy challenges. How to become an auditor in India is as follows:

  • After finishing your Higher Secondary schooling or 12th, enroll in an appropriate program of study. B.Com, Accountancy, BBA, Finance, Economics, or any other comparable stream, for instance.
  • You can enroll in the Certified Internal Auditor (CIA) program or take the CA test offered by the Institute of Chartered Accountants after earning a Bachelor’s degree in one of the aforementioned subjects. You can enroll in the top ACCA course, often known as the worldwide Chartered Accountant course, if you wish to practice internationally.
  • To prepare for these courses, students can join a training institute (one like Northstar Academy) and pass the exams in one go.
  • While you are a student, sign up for relevant internships with reputable companies. This will guarantee that you receive a well-rounded education prior to certification.

How to become an Auditor globally 

  • You can start with a Humanities, Commerce, or Science program in 10+2 if you want to become an auditor. However, enrolling in the commerce stream is recommended as it provides you with a fundamental understanding of commerce and the company setting in which an auditing job would take place.
  • A bachelor’s degree in any subject is typically all that is needed for the majority of professional pathways leading to an auditing position. You would, however, get a greater grasp of the industry you plan to work in if you pursued a BCom degree.
  • You can sit for the Institute of Internal Auditors Certified Internal Auditor (CIA) test upon graduation. It is an online test that may be taken at several locations in India. Within four years of registering for the test, you must pass each of its three parts.
  • After earning a CA, CWA, or CS certificate, you may also apply for the CIA.

Conclusion

If you’ve already made up your mind to become an auditor, selecting the ideal coaching institute will enable you to prepare for the exam comprehensively. For thorough & all-inclusive preparation, NorthStar Academy (NSA) gives much-needed support in their top accounting and finance ACCA course, enabling you to pass the ACCA certification exam on your first try. Numerous students have benefitted from the advice of top subject matter experts at NSA, including M. Irfat sir, in securing their desired jobs in the field of auditing.

No matter where in the globe you reside, you may sign up for the NorthStar Academy online classes. Call us at +91 8147470707 if you have any more queries, and speak with our counselors.

FAQs (Frequently Asked Questions)

  1. Can I become an auditor without CA?

Ans. A chartered accountant, a cost accountant, or another professional, as the Board may determine, will only be chosen to serve as the auditor.

2. How long does it take to become an auditor?

Ans. You must have a degree in accounting or a closely related discipline with a major in accounting in order to become an auditor or work as one. Complete a bachelor’s degree in a recognized field, such as accounting or business administration. Three years of full-time study are typically needed for this.

3. Is auditing a good career?

Ans. The field of auditing is stable and rewarding. The industry’s typical starting pay for entry-level positions ranges from acceptable to excellent.

4. What is the salary of an auditor in a bank?

Ans. With less than one year of experience to five years, the average banking compensation for an auditor in India is 2.1 Lakhs. The compensation range for concurrent auditors at a bank in India is between 1.0 to 3.2 lakhs.

5. What is an auditor’s job salary?

Ans. The average yearly compensation for auditors in India is 3.0 Lakhs, with salaries ranging from 1.0 LPA to 9.0 LPA.

6. What credentials do I require to become an auditor?

Ans. If you want to become an auditor, you can choose from a number of courses in accounting, finance, economics, business, and other relevant fields. One can study accounting for a bachelor’s degree or certification and become an auditor. They can also seek an MBA in accounting.

7. How many years does it take to become an auditor?

Ans. If you possess a non-accredited degree, a national diploma in internal auditing, cost, and management accounting, or taxation, or a national higher diploma in internal auditing, cost, and management accounting, you have four years to complete the requirements if you possess a matriculation certificate or its equivalent, five years.

8. Name the type of Jobs available for an Auditor.

Ans. An auditor examines financial accounts to confirm that organizations and businesses adhere to legal requirements. To operate as an auditor, you’ll need to have a degree in accounting, finance, economics, or a comparable subject. You might also need to be specially certified.

Leave a Reply

Your email address will not be published. Required fields are marked *

    Let us know about your basic qualification

    Set your Professional Goals with us

    Everything is right here! Just fill this form.

      Let us know about your basic qualification

      CMA USA Online Classes: What are the benefits of studying online classes? Best Courses After 12th – Choose Your Career Options in India Top Differences between US CPA and US CMA Is CMA USA a Good Career Course in 2023? How to get an IMA-CMA Scholarship: A step by step Guide CMA USA vs CA Which is Course Better for Career? Choose Now! 12 Ultimate CA Tips for Success Exam How Much a Financial Manager Earns in India? Which Study Material is best for CMA USA Exam? Best MBA colleges in India in finance : Career options after B.Com? Professional Courses after B.Com Best Course After CMA USA : Is PG Required After CMA US? CMA Preparation in 2023:Why You Should Start in College-CMA Study Guide Best MNC CMA Jobs in India and CMA USA Opportunities in MNC How to become a company secretary in 2023 What is CMA USA Job Opportunities in India & Salary of CMA MBA Finance vs 5 Best Global Certifications in 2023 : Course Guide 13 Best Career Options After Bcom . What are the Best CMA USA Job Opportunities in Dubai and Salary? Best Institute for ACCA in India : How to Choose in 2023