Advantages of Having a Financial Auditor
1. A financial auditor will make sure that all the financial records are kept as well as maintained according to general accounting ethics and principles
2. A financial auditor is considered to be the best budgeting as well as planning tool
3. A financial auditor will take care of all the financial aspects of an organization and helps in organizing and maintaining the financial stability of any organization
4. The financial statements can be used while evaluating the standing of any organization
Generally, the auditor is hired by the board of directors of any organization. Thus, one can say that the board of directors in any organization is responsible for the overall appointment of managers and key personnel. It is the duty of an auditor to report to the board of directors. The audit report is always addressed to the Board.
Functions and Duties of a financial auditor
It is the duty of the financial auditor to prepare a report which consists of a cover letter. This cover letter is also sometimes referred to as a management letter. This cover letter generally states the opinions of the auditor as well as the recommendations for the particular organization. The cover letter also contains financial statements as well as notes of the statements. The advantage of these statements is that these can be referred by any official when the need arises. These also show the information of the previous fiscal year. It the duty of the financial auditor to uncover as well as reveal any poor practices as well as irregularities. Thus, the weakness as far as finances are concerned is found out by these professionals. It is within the duty of the financial auditor to suggest different procedures to increase and improve the financial stability of any organization. Auditors also ensure that the funds are used properly. It is the duty of the financial auditor to solve and find out if the money of any organization is being used in a wrong way or is misused.
A financial auditor needs to obtain a degree in accounts, finance, economics, or any other related degree. He needs to be a certified professional accountant. Auditors learn how financial analysis is done, analyzing financial statements, reviewing balance sheets and cash flow statements. They also learn about value based approach, sources which help in data comparison and about the impact and effect of changes which happen in the working capital. They are also taught about the latest financial tools and use of trend analysis which are helpful in financial analysis.
Scope of a financial auditor
The scope of a financial auditor is immense, as in big or small organizations a financial auditor is a must. There are many new companies and organizations which require financial auditors for smooth functioning. If there is no auditor in the company, then it is hard to figure out the functioning of the organization financially. The company or organization may itself invite lot of trouble if it does not have a good financial auditor. Thus, this is an evergreen profession and there are many opportunities in this field. One will never be disappointed if one chooses this profession.
Other reports and engagements
There are various evaluations as well as audits which are performed by an external auditor. These are as below:
1. Due Diligence
2. Financial forecasts
3. Internal audit reports
4. Review of all financial statements
Salary of a Financial Auditor
The salary of the financial auditor is really good. Initially one may not get a high salary but it can increase with experience gained. If one has a good understanding of auditing, he shall get more salary. One can join as a trainer and obtain knowledge if one wishes to gain a good understanding and knowledge of finance. Senior auditors are paid around $80,000 per year. Junior auditors who have just joined draw around $36,000 per year.