The role and rewards of an auditor
Auditors are the guardians of financial integrity, ensuring that organisations’ financial statements are accurate and in compliance with regulations. Their work is crucial for keeping trust in financial markets and for enabling stakeholders to make informed decisions. Let us delve into what an auditor does, how to become one, and what kind of earnings you can expect in this profession.
What does an auditor do?
Auditors examine financial records and statements to ensure their accuracy and compliance with laws and regulations. They conduct internal and external audits:
Internal auditors: employed by the organisation they audit, they assess internal controls, risk management, and governance processes. They aim to improve efficiency and effectiveness and prevent fraud.
External auditors: usually work for a third party accounting firms and audit the financial statements of different organisations. They provide an independent assessment of the financial health of an organisation, which is crucial for investors, regulators, and other stakeholders.
Their tasks include:
- Reporting findings: auditors compile reports that detail their findings, including any discrepancies or areas of concern, and provide recommendations for improvements.
- Planning and conducting audits: auditors begin by understanding the business environment, setting audit goals, and designing audit procedures.
- Testing internal controls: they examine the effectiveness of internal controls to ensure they mitigate risks.
- Analysing financial statements: they review balance sheets, income statements, and other financial documents.
How to become an auditor
Becoming an auditor requires a combination of education, certification, and experience:
- Experience: gaining relevant work experience through internships or entry-level positions in accounting or auditing is essential. It provides practical knowledge and helps in fulfilling certification requirements.
- Education: a bachelor’s degree in accounting, finance, or a related field is normally needed. Coursework includes subjects like auditing, taxation, and financial reporting.
- Certifications: external auditors must be qualified accountants and a member of a professional body such as ACCA. After qualification, there is often a clear progression from junior through to senior roles
Earnings and career outlook
The earnings of an auditor can vary based on factors such as location, experience, and the type of auditing role. Here is a general overview:
- Entry-level auditors: typically earn between £25,000 and £35,000 per year in the UK. With experience, the salary can increase significantly.
- Mid-level auditors: with a few years of experience, auditors can expect to earn between £40,000 and £60,000 annually.
- Managers and Senior Managers: at this level, earnings can range from £60,000 to £98,000 or more.
- Top-level auditors and Partners: experienced auditors in senior positions, especially those working at large accounting firms, can earn £100,000 or more
Additionally, auditors often receive benefits such as bonuses. The demand for auditors stays strong due to the ongoing need for financial transparency and accountability.
How Brewer Morris can help you find your next audit opportunity
A career in auditing offers a blend of intellectual challenge, financial reward, and the opportunity to make a significant impact on the business world. If you have a keen eye for detail and a passion for financial accuracy, this could be the perfect path for you. If you are looking for a new auditing opportunity, check out our latest audit jobs.
Alternatively, if you are looking to hire an auditor, submit a brief and a member of our team will be in touch.
