Audit and Assurance

A Guide to Audit Professionals

December 17, 2020 Comments Off on A Guide to Audit Professionals

A career as a financial auditor is an extremely lucrative option for young graduates. In the article below, we’ll cover what it means to be an auditor, career prospects, growth and a lot more.

Who Is An Auditor?

An auditor is more than an accountant who reviews financial records. Auditors work for private companies, governments, or public accounting firms. Public company auditing is the most popular type of auditing and focuses on reviewing financial records of companies across multiple industries.

What Does An Auditor Do?

An auditor works to analyse a company’s financials by checking its financial statements. Current & prospective investors, banks then use this information, and creditors to create necessary company strategies.

Working As An Auditor

An auditor has several opportunities to travel and study new companies and industries.

Clark is an auditor from London who frequently travels around the country to conduct audits for his company’s clients. Auditors also meet different people which helps to grow their professional connections with other authors and at the companies they audit. It helps them gain exposure to multiple industries. Another great perk is flexibility, as some conducting aspects of auditing require just a laptop and an internet connection. So, many auditors opt for remote work if needed.

A Typical Auditor’s Pay

Auditing is a stable field and a lucrative field. Graduate auditors earn around $50,000, while auditors with two or more years of experience earn more than $70,000. An audit partner in a medium to large public accounting firm makes almost $1 million a year.

Auditors have high projected growth and stability in the next few decades. Auditing Services is a lucrative career path for recent finance graduates who are interested in a rewarding profession with many opportunities.

Responsibilities Of An Auditor

Responsibilities of an auditor include but is not limited to:

  • Reviewing an organisation’s business operations
  • Researching and assessing business risks
  • Evaluating regulatory compliances
  • Ensure the company compliances with federal financial laws.
  • Creating and presenting final reports on a company
  • Assist in the management of internal control improvements and federal laws.
  • Evaluating company readiness to business interruptions
  • Analysing fraud or theft company assets
  • Promoting financial ethics and identifying misconduct.

Types of Auditors

Internal Auditors

Internal audit is the evaluation of a company’s financial risk management, corporate governance and internal control processes to ensure they are operating effectively. Internal auditors assess compliance with federal laws and regulations. Auditors also help identify and raise instances of fraud or errors to company management, allowing them to resolve any issues before an external financial audit by the government or a public accounting firm.

Internal auditors typically work for the company that is undergoing an audit but can also represent private auditors from private accounting firms. These auditors examine a company’s finances and create risk assessments for each department and evaluate risk management.

Internal auditors also analyse issues which go beyond financial statements such as the company’s reputation, growth and the way it treats its employees.

External Auditors

An external audit is an examination conducted by an independent accountant usually appointed by a governmental agency. This type of audit intends to certify the financial statements of a business.

The objectives of an external audit determine the accuracy of a client’s financial statements, its compliance applicable accounting frameworks; and Whether the client’s financial statements present financial position fairly.

Some types of external audits target specific issues concerning a client’s accounting records, like an investigation into company fraud.

Government auditors

Government auditors maintain and examine financial records of government agencies, private businesses and individuals. Auditors employed through the government ensure revenues are received and spent according to laws and regulations. They detect embezzlement and fraud, analyse agency accounting controls, and evaluate risk management.

Forensic Auditors

Forensic auditors specialise in financial crime and are used by law enforcement organisations to investigate white-collar crime.

Importance of Internal Auditors in a Company

Internal auditors provide an essential insight into company leadership and its operations. The internal auditor provides objective insight, improves the operation efficiency, risk evaluation and protects financial assets. Regular and comprehensive internal audits are vital to correct issues and maintain an excellent public reputation.

If you require professionals which will conduct the audit of your company then JAXA Chartered Accountants can help you in this matter. The experts at JAXA will analyse your company’s financial statements with 100% privacy and security. Contact us for more information about the various services JAXA provides.;