reasons to become an auditor

Why Auditing Is a Great Career

  • Develop People Skills
  • Work Anywhere in the World
  • High Demand for Qualified Auditors
  • Ample Opportunities for Advancement
  • Much Higher Than Average Annual Salary

Companies make money, and they usually hire people to manage it, take care of it, and keep track of it. Sometimes, mistakes happen. Less commonly, nefarious things happen too. In these instances, an auditor is the accounting professional who investigates the problems and makes sure things stay in balance. As they say, the credits must equal the debits. Everything must stay above reproach. Auditors have the necessary skills to ensure everything is on the level. These five reasons to become an auditor could help a person decide on a career path. Auditing and accounting are closely related and often overlap. A person who loves numbers and finance should consider becoming an auditor.

Reasons to Become an Auditor

Because of the nature of their work, auditors become trusted members of both the staffs of the companies where they work and in society at large. The honesty and integrity that their work demands means that people can come to trust them. Companies need to be able to rely on trustworthy individuals to maintain not only their public image and brand integrity but also their reputation in the business world. This is equally true whether applied to major corporations or small businesses. Handshakes might not carry the same weight as they once did, but a business’s word is still its No. 1 advantage. Being the people upon whom businesses count for these things is a great way for auditors to build their credentials and move their careers forward.

1. Develop People Skills

Auditors learn how to work with people. That skill will serve a person well in a wide range of industries and occupations. Perhaps an auditor will get a chance to advance into a managerial position or move to a larger firm after working in a smaller firm for a few years. They learn how do well in a competitive, fast-paced, and high-pressure environment.

People skills also include communication. Auditors must not only be able to communicate with the rank and file of a company but also the various levels of management. They must be able to gather information professionally while remaining impartial, particularly when delivering reports.

When tensions arise, auditors often become mediators as well. So, it is crucial for them to have strong conflict-resolution skills and to have the ability to reach consensus compromise with all relevant parties. If there are problems, the news is seldom good. Auditors must remain above the fray.

2. Work Anywhere in the World

become an auditor

Auditors are in high demand across the United States and around the world. As corporations in other countries go global, they will open offices in the United States or engage in business with the United States. Those companies will have a need for auditors to handle their financial records in order to ensure accuracy, especially when it comes to tariffs, taxes, duties, import fees, and other costs of international business. As companies grow, they also need auditors in order to make sure that their books are within the law.

Auditors must also be able to go abroad to work. If they do, then they must seek the proper licensing for the country where they plan to work. Additionally, their companies must also acquire and process all of the requisite paperwork to allow their employees to work in other countries. In the information age, too, it’s possible for auditors to work from home in the United States and to service companies and other business entities in other countries. In many cases, the laws are different for telecommuting and for auditors who move to other countries.

At a minimum, auditors should become familiar with the language of the country where they will do business. In many cases, companies will provide professional translators. Still, making the effort to learn the language will, at the very least, be seen as a respectful gesture on the part of both the company and the auditors.

By the same token, auditors should also familiarize themselves with the laws of the country, or countries, in question even if there are legal professionals on board to handle any concerns. Knowing at least a little about a country’s laws will increase efficiency because the auditors won’t have to ask questions of the lawyers continuously. These are just some of the preparations auditors should make before heading out of the U.S. to work.

5 Reasons to Become an Auditor

3. High Demand for Qualified Auditors

There is a high demand for auditors on a global scale. Within the United States, the expected growth rate for jobs in auditing is six percent between May 2018 and May 2028. This is a little faster than the rate of growth for all occupations in the United States, which is four percent. The growth will come from international firms doing more business in the United States and from an increase in the complexity of doing taxes. An auditor who is a certified public accountant or who has other certifications will have the best chances at gaining employment with a prestigious firm. Many firms pay their employees to earn a master’s degree in accounting or business administration, making a career in auditing even more lucrative.

Within the United States, the expected growth rate for jobs in auditing is 4% between 2019 and 2029. This is average for all occupations in the United States. Despite a decline in U.S. auditing jobs, the growth will be maintained from international firms doing more business in the United States and from an increase in the complexity of doing taxes. An auditor who is a certified public accountant or who has other certifications will have the best chances at gaining employment. Such employment might be at a prestigious firm. Many firms cover the costs of their auditors earning master’s degrees in accounting or business administration. Some might even pay these students a salary at the same time. When the time comes to take certification tests, companies also usually cover those costs.

4. Ample Opportunities for Advancement

why be an auditor

Within the career of auditing, there are many opportunities for advancement. A person who begins as an entry-level auditor could advance to an auditor partner within a few years. A few years after that, a person could advance into a management position. Many people move from working as an auditor at a small firm to working in a large one where they have more responsibilities.

In addition to climbing the “auditor ladder,” there are opportunities for auditors to expand their CVs by becoming certified public accountants, forensic accountants, or even chief financial officers. Of course, the auditors would need to earn degrees, certifications, or both to pursue these higher positions.

One thing to realize, too, is that auditors can be CPAs at the same time as they’re doing their auditing jobs. In fact, people with both skill sets are highly prized because they can often do both jobs at the same time with a minimum of additional work. Both the companies for which they work and they themselves can be incredibly efficient, which is greatly desirable in the business world.

The same holds true if an auditor wants to branch out after achieving CPA certification. The skills, honesty, and integrity that are the hallmarks of the auditor’s job are also integral to jobs like forensic accountant. These accountants must track down financial shenanigans in the same manner as auditors. The job is larger scale, but the basic tenets are the same. If an auditor wants to “think big,” then government accountant jobs beckon. These jobs are different because they involve laws that are more complex than those that apply to nongovernment jobs.

Other auditors might want to go into tax accounting, investment accounting, or fiduciary accounting for private individuals. All of these jobs require the same basic skills and knowledge with extra items necessary for each discipline.

5. Much Higher Than Average Annual Salary

Although money should not be the most important factor in what makes a job great, the reality is that most people are quite concerned or interested in how much a particular career is likely to pay. According to the Bureau of Labor Statistics, auditors earned a median annual salary of $70,500 as of May 2018. This is much higher than the median salary for all occupations combined, which is $38,640 per year as of May 2018. Auditors who work in the finance industry have the highest median annual pay at more than $74,000 per year.

Money is never the most important consideration in job quality. The reality, however, is that most people just want the companies to “show them the money.” According to the Bureau of Labor Statistics, auditors earned a median annual salary of $73,560 as of 2019. This is higher than the median salary for all occupations combined, which is $61,937 per year as of 2020. The lowest 10% of the workforce makes just $45,220 while the highest 10% earns $128.680.

How to Become an Auditor

Usually, auditors require a bachelor’s degree to be considered for a position. The degree should be in a related field, such as accounting, business administration, or even social science. The top four schools in the United States, according to U.S. News and World Report, are the University of Texas at Austin, Brigham Young University, the University of Illinois at Urbana- Champaign, and the University of Pennsylvania.

The University of Texas at Austin is the No. 42 university overall in the United States, as well, so it is both a rigorous and prestigious place to study. Accounting students will be able to delve into the techniques of financial analysis, tax preparation, and financial records examination. These will be the core courses that will form the basis of the student’s eventual choice of specialization.

Accounting majors, even those planning to become auditors of one variety or another, will receive a thorough grounding in both mathematics and economics. The university groups its classes into categories and requires certain numbers of courses in each category. These categories include:

  • Quantitative reasoning
  • Ethics and leadership
  • Cultural diversity in the United States
  • Writing
  • Independent inquiry
  • Global cultures

Classes in accounting and probability and statistics would be good examples of those in the quantitative reasoning category. History classes, both American and World, would be in either of the cultural diversity categories. In the category of ethics and leadership, classes like Organizational Behavior fit the bill. Any English or composition classes would fit into the writing category. All of these will give students the skills they need to be successful auditors, reinforcing concepts like communication, critical thinking, and leadership.

Other important classes in the curriculum include Business Law, marketing, and science and technology. In the 21st century, technology is becoming more important daily. Gone are the days of “a pencil behind the ear and an eraser in the off hand.” For this reason, students studying accounting might well consider computer courses as their electives or, possibly, even a minor. Having such computer skills would be a nice addition to a resume after graduation.

Beyond the 120 credits that an undergraduate will amass, there are also graduate programs and doctoral programs available for students who want the additional qualifications. Some employers will require a graduate degree for certain jobs. Most often, these will be management positions.

Doctoral programs are usually for those students who wish to teach others and share their love of the subject. Doctoral programs usually take between two and four years to complete, counting the dissertation. For those who wish to go back out into the business world instead of academia will also be well-served by having a Ph.D. in the field. Most of the prestigious accounting schools offer specific auditing doctoral programs too.

Master’s degrees in Accounting take one to two years to complete. Generally, they require either a capstone project or a thesis. It depends on the program in question which is required. Sometimes, students do both. Those interested should check with the school they plan to attend to find out its requirements.

In some cases, undergraduate students can complete the master’s degree at the same time as their undergraduate degree. This usually extends the student’s university time to five years instead of the usual four. Whichever path students decide to take, the reasons to become an auditor are exciting, growing, and rewarding.

Auditors examine financial statements, verify facts, and ensure that all information is complete. These professionals provide critical expertise to all types of businesses. Each of these five reasons to become an auditor should be considered when a person is thinking about which college major to choose or what career path to take.

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