The core job responsibility of a tax auditor is assessing the accuracy of every financial statement of a company and ensuring financial compliance. The main tasks and duties are listed below:
- Adding credibility to the claims made by a company concerning its financial status, position and performance.
- Scrutiny of a company's balance sheet with emphasis on income statements and cash flow of the organization over a period of time.
- Matching the statements made by the employees and managers with the financial records created by the company.
- A detailed examination of the company's adherence to laws and rules, reviewing tax and insurance documents and also the objectivity of the company in terms of fulfilling its goals.
- Addressing various issues that emerge through the audit process to company management and members participating in the audit.
- Thorough examination of the company's expenditures, profits and losses and also identifying fraud if any, thereby correcting any negative issues found.
- Risk assessment and management; strongly focusing on the possible risks that may arise in the company and developing risk management techniques.
- Publishing reports and auditor records on completion of audit highlighting the detailed findings and recommendations
- Unbiased and uninvolved attitude in the auditing process
- Farsightedness in terms of risk assessment and management
- Strong insight in the financial field
- Leadership skills; confidently interacting with people of all levels
- Strong communication as well as inter-personal skills
- Good mathematical skill and a sound mathematical mind
- A bachelor's degree is the minimum requirement.
- In addition to earning a Bachelor of Science (B.S.) in Accounting, an auditor should be a Certified Financial Auditor (CFA)
- The American Institute of Certified Accountants (AICPA) offers professional credentials for auditors.
- Although it is not mandatory, auditors who have graduated with a bachelor's degree can pursue a Master of Science (M.S.) degree in auditing too.
- It is advantageous to have work experience in the field. In order to be a certified auditor, completing the CIA examination is required.
With a bachelor's degree alone, an auditor can earn a median salary of $23,000 annually which escalates to approximately $43,000 if a master's degree is acquired. Work experience of less than two years can increase an auditor's salary to approximately $40,000 annually. Salary increases occur with an increase in experience. Working over four years can yield a salary of $50,000 to $60,000. With 20 or more years of experience, an auditor can earn more than $80,000 annually.
Financial audit of a company decides the fate of the company with its shareholders and investors. The financial status and integrity of a company reflects the company's prestige in the eyes of legal bodies and other organizations as well. Financial auditors continue to play a key role in restoring a company's good will and protecting it from all possible risks.