Basically, two types of auditors are present, namely internal and external. An independent or external auditor is employed in public accounting organizations or is sometimes self employed. Government agencies, industries, and business make contracts with them to certify and verify all their bank statements. Well developed firms, more often than not, have their own records audited one time in a year. An external audit provides creditors and shareholders an expert, outside outlook regarding the financial condition of the company.
The job profile of internal auditors resembles that of independent auditors. However, they are employed and get specific earnings from one firm. These types of auditors evaluate and examine the whole financial system of that company in order to make certain that it is strong economically and is being operated efficiently. Internal auditors assess all monetary records including inventory and equipment records, payroll records, and accounting books. They generate reports to the administration on how well all accounting strategies are functioning and where the need of making any change is.
To improve the chances of becoming an auditor in some esteemed firm, one should have a bachelor's degree, preferably in accounting. The courses in humanities, computers, communications, and economics can also prove helpful. Most external auditors also pursue advanced degrees like an MBA (master's degree in business administration) and law degree.
There are a number of public accounting organizations requiring external auditors to go by the 'State's Certification Examination', and a CPA (certified public accountant) designation. All states offer a 4 part CPA examination introduced by the AICPA (American Institute of Certified Public Accountant). This examination lasts for around 2 days and has a passing rate of 25%. Before individuals can opt for taking this examination, many States need to have 150 hours or university stage course works that is like an undergraduate degree or master's degree.
Beginning auditors can find jobs in some public accounting organizations. After one has earned huge experience in the field of general accounting, he/she can opt for getting specialized in auditing. The applicants can also find jobs from internet job sites, classified ads in local newspapers, and accounting firms. Private and State employment offices can also introduce job openings.
The more experience and training the auditor has, the greater the prospects are for advancements. The auditors having enough industry experience more often go into their own business. As per the United States Bureau of Labor Statistics, jobs for auditors were estimated to boost up at a faster rate than average of almost all occupations through 2014.
Auditors often have to travel during their working hours and spend most of their time in the branch offices of their customers and in various financial institutions. They often interact with individuals. Auditors work for around 35 to 40 hours during a 5 day week. They may also sometimes be asked to work for more hours devoid of any additional payments.
Auditors and accountants generally obtain a mean annual salary of around $50,770 during the year 2004 as per the United States Bureau of Labor Statistics. It has been estimated that internet auditors at mid levels earned mean annual wages of around $54,445 dollars during the year 2006. In the year 2005, a salary survey was conducted by Robert Half International (a recruitment service company), according to which the auditors and accountants with experience of one year made wages between $28,250 and $45,000 per year. Accountants often receive paid vacations and holidays, pension plans, and life and health insurance. Some companies also introduce some profit sharing schemes. There are also a number of self employed accountants for auditors who arrange for own benefits.
To conclude, one can find that for enjoying a high paying occupation as internal or external auditor, one should have passed all certification exams apart from having the necessary academic qualifications.