This post provides detailed information on the financial auditor career. It highlights the educational requirements and certifications you need to have to become a financial auditor, the various career opportunities you can explore, and some valuable tips you can apply to be successful in your financial auditing career.
Please, read on:
Who is a Financial Auditor?
A financial auditor is a person who audits the financial statements of an organization, which is usually a business or government agency.
They are required to carry out the audit to ensure that the accounting information reported by the company is accurate and complete.
What Does a Financial Auditor Do?
Financial auditors perform a variety of tasks, including reviewing financial statements, preparing reports, performing internal control reviews, conducting research, and analyzing data.
- Reviewing financial statements
Financial auditors review various types of documents, such as balance sheets, income statements, cash flow statements, and other financial information.
This includes looking at whether or not companies are meeting their obligations and whether there is sufficient money available to pay employees and creditors.
2. Preparing reports
After completing the initial review, auditors prepare written reports summarizing their findings.
These reports may include recommendations for improving company operations.
It may also contain the auditor’s official opinion regarding the accuracy of the financial statements in the report.
3. Conducting internal control reviews
Internal control refers to procedures used to ensure that transactions are carried out correctly.
Auditors conduct internal control reviews to ensure that these procedures are being followed properly.
If they noticed anything unusual, then they may recommend additional controls.
4. Performing research
Auditors often need to perform extensive research to determine if companies are complying with regulations or not.
This may require the auditor to work with large amounts of data.
5. Analyzing data
Auditors must be able to understand and interpret complex data, and to identify trends within it. They may need to draw conclusions based on this analysis.
Why Choose Financial Auditor Career?
There are many reasons the financial auditor career choice is attractive. Here are a few:
- It’s a high-paying job with good prospects for advancement.
- There are lots of opportunities in the field.
- It offers flexibility in working hours and location.
- You can work part time while pursuing your other interests.
- It provides you with a wide variety of experiences.
- You can use it as a stepping stone to higher education.
- It allows you to travel.
- It gives you the opportunity to learn.
Financial Auditor Educational Requirements
To become a financial auditor, one must have at least a Bachelor’s degree in Accounting, Finance, Economics, or Business Administration, or in a related field.
In addition to that, you should possess strong analytical skills, excellent communication abilities, and be able to work well under pressure.
Financial Auditor Continuing Education
In order to maintain certification and continue to work as a financial auditor, you need to obtain continuing education units (CEUs) every two years.
These CEUs can be obtained through professional organizations, such as the American Institute of Certified Public Accountants (AICPA), the Association of Certified Fraud Examiners (ACFE), and the National Society of Security Analysts (NSSA).
Financial Auditor Certification/License
The CFA designation has been awarded since 1923. To be qualified for the award of the CFA, candidates must pass the Uniform CFA Examination.
Also, candidates for the CFA award must meet certain experience requirements before they can take the exam.
The CFA charter is issued only after a candidate has passed the Uniform CFA Exam. Once licensed, the individual may apply for state licenses in all 50 states.
Financial Auditor Career Opportunities
The career opportunities or job positions that someone with financial auditing background can access include:
- Audit Associate
The audit associate performs routine tasks, like reviewing documents, preparing reports, and analyzing data.
An audit associate typically earns about $40,000 per year.
2. Auditor
An auditor is charged with the responsibility of performing impartial audits on a company’s books and records. Auditors perform their duties on a full-time basis.
They receive compensation based on how much work they do. Most auditors make between $60,000 and $100,000 annually.
3. Management Accountant
Management accountants help companies manage their finances. They prepare budgets, analyze costs, and calculate profits and losses.
Management accountants generally earn more than auditors because they work on a regular schedule.
Their average annual income is approximately $80,000.
4. Tax Preparer
Tax preparers are professionals who assist individuals and businesses in preparing their tax returns.
They also provide advice regarding taxes.
Many people choose to become tax preparers because they enjoy helping others. This position has a median compensation of about $50,000.
5. Compliance Officer
Compliance officers are employed by corporations to ensure that they comply with regulations set forth by government agencies.
For example, compliance officers monitor whether banks are following anti-money laundering laws or not.
They are paid less than other professionals because they often work part time.
Other job titles that individuals who are trained in financial auditing can access and build a career include:
- Corporate Controller
- Chief Accounting Office Executive
- Internal Audit Manager
- Senior Financial Analyst
- Financial Risk Manager
- Financial Planner.
How to Advance your Financial Auditing Career
There are many ways to advance your financial auditing career and get to the top of your industry. Here are some tips you can apply:
- Attend conferences and seminars
Attend industry conferences and seminars where you can learn new skills and gain valuable knowledge about the financial auditing industry.
You will find out what it takes to succeed in the field and network with potential employers.
2. Get certified
Having a certification is one way that you can distinguish yourself from the competition. Being certified in your field is a proof to clients that you have mastered specific areas of expertise in your job.
There are several certifications available that you can take, including the Chartered Financial Analyst (CFA) designation.
3. Take online courses
Online learning allows you to study at your own pace without having to leave home. There are courses relating to financial auditing that are offered online through reputable institutions.
4. Join professional associations
Joining a professional association lets you interact with other members of your profession.
This helps you stay up to date on trends and developments within the financial services industry.
5. Build relationships
Networking is another great way to advance your career. Find local groups related to finance and attend events hosted by these organizations.
How to Find a Good School for Financial Auditing Education
Finding a good school or program to enroll in to pursue a career in accounting or finance is important for success in the career.
Here are some things to help you make the best decision when selecting a program for financial auditing training:
- Location
Location plays a big role in deciding which schools are best for you. If you want to live near family and friends, then look into programs located close to home.
2. Program length
The length of time required to complete a degree varies, depending on the type of program.
Some programs take two years while others may require four years to complete. Consider how much time you need to devote to studying before making a decision.
3. Accreditation
Accredited programs meet certain standards set by educational institutions. Programs accredited by the Association to Advance Collegiate Schools of Business (AACSB International) are considered to be among the top programs worldwide.
4. Tuition cost
Tuition costs vary greatly between schools. Make sure to compare costs before enrolling so that you do not end up paying more than necessary.
5. Job placement rate
Job placement rates also vary widely between different schools. Check with the school’s admissions office to see how well their graduates fare after graduation.
How to be Successful in your Financial Auditing Career
There are many factors that may contribute to someone’s success in any career. Here are some tips to help you achieve success in your career as a financial auditor:
- Be proactive
Proactive people tend to make better decisions because they think about problems before they occur.
They also tend to avoid mistakes because they anticipate issues before they happen.
2. Learn from past experiences
Take advantage of previous experience and use it to improve your performance.
For example, if you made a mistake during an audit, don’t let this discourage you.
Instead, learn from the experience and apply what you learned to future audits.
3. Seek out opportunities
Take advantage of new opportunities that arise throughout your career. Don’t limit yourself to just one job. Expand your horizons and explore all avenues that could lead to greater growth.
4. Stay current
Keep abreast of changes in technology and business practices. You never know when something will change and you will have to adapt quickly.
5. Network
It is important to network with people who are also in the financial auditing industry. Ask them questions and find out their opinion about certain issues in your industry. You can also ask them for advice on certain aspects of your job you need help on.
Qualities of a Good Financial Auditor
A good financial auditor has the following qualities:
- A positive attitude
An optimistic outlook helps auditors maintain a positive attitude while working, even if they are having some challenges.
With a positive attitude, financial auditors become more willing to take risks and try new things, which can result in significant success.
2. Strong communication skills
Good auditors communicate well with others. They listen carefully and respond appropriately to what they hear.
3. Strong analytical skills
Good auditors are able to think critically and logically. With analytical skills, financial auditors are able to make better and more effective decisions, which are based on facts and not on emotions.
4. Flexibility
Flexibility is important because different situations require different solutions.
For example, while one audit might involve comparing two years of data, another one may only involve examining a single transaction.
5. Self-awareness
Self-awareness allows auditors to recognize their own strengths and weaknesses. It helps them to understand the areas they easily excel in and where they need to improve upon.
Financial Auditor Job Outlook
According to the Bureau of Labor Statistics, employment of accountants and auditors is expected to expand at the rate of 7% between 2020 and 2030, which is approximately the same as the national average for all occupations.
On average, 135,000 accountant and auditor job opportunities are expected per year during the next decade.
Conclusion
Accounting is an important part of any business. A good financial auditor should understand accounting principles and keep up-to-date with industry developments.
This guide is helpful to individuals interested in getting into the financial auditor career.
It has boosted their knowledge about the financial auditing profession to decide if that is what they want to do.
It has also provided tips on how to advance your financial auditor career and be successful in your industry, which individuals already in the financial auditing field will find really beneficial.
