An auditor helps ensure that a business is running in a way that is both efficient and compliant with regulations. Those who choose to pursue a career in this field will spend time collecting and examining information about the operation of a company, as well as finding ways to condense this information into a format that can be understood by internal business strategists as well as external businesses, clients, and governmental or accrediting agencies. Some auditors may be primarily focused on analysis, while others may be more heavily involved in strategizing.
Types of Auditors
There are many different types of auditors, and many related fields, but they can typically be divided into internal and external auditors. External auditors, also often known as public accountants, generally either own their own business or work for public accounting firms. They serve as consultants to their clients for accounting, taxation, and other financial services. They may specialize in a specific area. For example some external auditors may focus on ways to take advantage of tax laws, while others might offer advice about how to structure financial systems. Still others may focus on ensuring that financial and tax regulations are being met. Some external auditors may function more like a detective, investigating white collar crimes through the use of forensic accounting in order to determine if a company is violating antitrust laws and other business practices.
Internal auditors are employed by the companies that they are auditing. Their tasks are often quite comparable to those of external auditors, except they focus only on one company. They may look for ways to reduce waste, ensure compliance, and check for internal fraud.
Schooling and Licensing
Auditors will generally require a minimum of a bachelor's degree in accounting or something similar. Many employers prefer a masters degree or an MBA with an emphasis on accounting. Many universities are now offering specialized degrees in auditing. Regardless of education, most auditors will start under the supervision of an experienced professional.
Most auditors will be far more successful if they are licensed as a Certified Public Accountant (CPA), especially if they plan on working as an external auditor. Anybody who will file a report with the Securities and Exchange Commission is legally required to become a licensed CPA. To become a CPA, most states require a total of 150 semester hours of college level work, which is 30 hours more than a typical bachelor's degree.
Employment and Job Outlook
As of 2008, according to the Bureau of Labor and Statistics, 1.3 million people were employed as accountants and auditors. About a quarter of them were involved in payroll, tax preparation, bookkeeping, and accounting. Roughly eight percent were self employed.
In the near future, job growth in the field is expected to grow very rapidly, meaning that auditors can expect to be in high demand. Over the next ten years, the field can be expected to grow by about a fifth. Salaries are high, with half of professional auditors earning more than fifty nine thousand dollars a year.
Data provided by the Bureau of Labor Statistics
The salary range for Auditor begins around $36,720 and usually tops out around $102,380, with a mean in the neighborhood of $69,550. This is about 60% higher than the national average for annual salaries.
In order to qualify for most Auditor positions, you typically need to have a Bachelor's Degree or higher.
Data provided by the Bureau of Labor Statistics
The growth outlook for Auditor careers is estimated at about 22% while the estimated growth for all career fields over that same span is at about 10.12%. Over the next six years, Auditor jobs are expected to grow at a 117% higher rate than the national average for annual salaries.