Should I Be a Financial Auditor?
A financial auditor reviews an organization's financial statements and internal accounting to determine whether it is healthy and operating successfully. Job duties include
- The organization and maintenance of financial records
- The preparation of taxes each year for the company and its employees
- The periodic inspection of accounting books and practices
- The development of ideas to decrease financial waste
Most financial auditors work on a full-time basis, although overtime is common, especially during tax season. They work in office settings and sometimes traveling to clients' locations. Few physical demands and little personal risk is associated with working as a financial auditor, but they must be able to stay focused on paperwork and numbers for hours at a time.
|Degree Level||Bachelor's degree required; master's degree may be preferred|
|Licensure and/or Certification||Typically voluntary; many auditors are also CPAs|
|Key Skills||Math and organizational skills; attention to detail|
|Median Annual Salary (May 2018)||$70,500 (for Auditors and Accountants)|
Sources: U.S. Bureau of Labor Statistics, Florida Tech Online
Steps to Become A Financial Auditor
Step 1: Earn a Bachelor's Degree
Most accounting firms require a bachelor's degree in accounting, finance, or a related field. Financial auditors must show great competency with numbers, so it is a good idea to take as many math courses as possible. The Bachelor of Science (B.S.) in Accounting and the B.S. in Business Administration (BSBA) with a major in accounting are two common degrees for auditors. Some BSBA programs offer a variety of accounting concentrations within the major; these concentrations often include topics relevant to individuals planning careers as auditors such as taxation, auditing, financial accounting, or governmental accounting. While both the B.S. and BSBA programs include courses in accounting, taxation, and auditing, a BSBA program may include additional coursework in management, marketing, and finance.
Aspiring auditors with a graduate degree in accounting, business, or finance will stand out from the competition, and some colleges and universities now offer master's degree programs specifically in auditing. While a master's degree is not necessarily required, most states expect 30 hours of coursework beyond a bachelor's degree, and many schools offer a 5-year program for a combined bachelor's and master's degree to meet this requirement. Master's degree programs in accounting include courses such as auditing, taxation, operations, and finance. Even if one does not earn a master's degree, many states require a certain number of college credits beyond a bachelor's degree to be eligible for certified public accountant (CPA) certification.
Step 2: Earn Certification
One certification available for aspiring financial auditors is a CPA certification, which is offered by the American Institute of Certified Public Accountants (AICPA). A CPA is earned by passing an intensive exam and meeting additional state requirements. The CPA examination is the only uniform requirement. Education and experience vary and differ by candidate and jurisdiction.
Step 3: Work With a Mentor and Earn Continuing Education Credits
All newly-hired auditors must be supervised by a professional with experience and the proper credentials. Accounting and auditing firms place new hires with a seasoned employee for a training period. Before a license can be renewed, most states require accountants and auditors to complete a certain number of continuing education hours. Many professional organizations offer continuing education lectures, courses, and seminars.
Step 4: Seek Additional Certifications
Once an auditor earns CPA certification, he or she can attain many other certifications through the Institute of Internal Auditors (IIA). For example, candidates may choose to earn certification as a Certified Financial Services Auditor (CFSA) or a Certified Internal Auditor (CIA), allowing them to compete for more specialized positions. The IIA offers a total of five professional certifications.
Aspiring auditors need at least a bachelor's degree in finance, accounting, or business, and many auditors obtain the certified public accountant credential.