what is an auditor?

Auditors are specialists who inspect the financial accounts of public sector and commercial companies. The examination of records enables them to determine the legality and validity of financial records. As an auditor, you are qualified to assess, evaluate and ensure the accuracy of an organisation's financial accounts. You also guarantee tax compliance and validate the business actions of your employer to ensure the company is running smoothly. 

In an advisory role, you assist your employer in identifying cost-saving measures and risk aversion methods to improve business success. As a finance specialist, you assess the economic health of a company and provide recommendations to improve revenue and minimise expenses. 

what does an auditor do?

All companies require an internal or external auditor to assess their financial soundness and ensure compliance with industry regulations. Auditors also work for the government and public corporations to ascertain the proper handling of funds and uncover embezzlement or misappropriation of money. 

In the private sector, auditors also act as consultants who ensure that financial records are a true reflection of the financial state of an organisation. You provide unbiased evaluations and recommend ways to improve a company's current practices and processes. 

Your objective as an auditor is to assist companies in improving operational productivity, mitigating risk and ensuring compliance. As part of a company’s accounts department, you can work in diverse sectors, such as banking, finance, manufacturing and retail.

Would working as an auditor suit your analytical skills? Then read on to find out what competencies and qualifications you need to thrive in an auditor role. 


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average salary of an auditor

According to payscale, the median salary of an auditor in India is ₹5,05,000 per year. Salaries for auditors range from ₹3,90,000 to ₹9,90,000 annually, depending on your employer, geographical location, experience and educational qualifications. Aside from the basic salary, auditors may also enjoy various allowances, including transport, house allowance and healthcare.

factors that impact an auditor’s salary

Your salary varies based on your geographical location, due to the difference in the cost of living. In small towns, living costs are lower than in cities, so your compensation package reflects this. For instance, if you are an auditor in Mumbai, your employer adjusts your salary to accommodate the higher cost of living. 

The industry you work for also dictates your earning potential. For example, an auditor working in the public sector or for government entities earns a lower salary than someone working in the private sector. 

Multinationals require additional experience and qualifications and are willing to pay more for exceptional expertise. In auditing, your certifications and chartered status can increase your earning potential. Auditors are highly valued and always in demand, so you can focus on the opportunities that suit you best.

auditor roles
auditor roles

types of auditors

You can branch out into various specialisms in your auditing career. Some typical types of auditors include:

  • internal auditors: when you are an internal auditor, your specific responsibilities are dictated by your employer. Your role is to review the performance of employees and ensure financial records comply with the company's standards and accounting systems. You also conduct risk assessments and assist managers in making sound business decisions.
  • external auditors: as an external auditor, your job is to carry out mandatory financial audits to determine the accuracy of a company’s records. Your responsibility is to ensure the financial records paint an accurate picture of a company's current financial situation. The report you prepare provides unbiased evidence of the integrity of a company to its stakeholders.
  • forensic auditors: in forensic auditing, your job is to investigate illegal activities and fraud in a company. You also help organisations determine protection measures to prevent embezzlement and fraud.
  • tax auditors: your work as a tax auditor is to verify the integrity of a company's tax returns. You determine whether a company has estimated its tax obligations correctly.  

working as an auditor

Being an auditor is an exciting career with diverse responsibilities and work environments. Read on to find out how you spend your time as an auditor, and the duties and responsibilities of the role.


education and skills

You can pursue any of the following routes to become a professional auditor:

  • bachelor's degree: many professional auditors start their career with a bachelor's degree in finance, economics, business or accounting. An aptitude for mathematics, analysis and comparing and interpreting facts and figures is very helpful. When you complete the undergraduate programme, you undergo further training to become an auditor. 
  • certification: earning industry-related certifications enhances your job prospects. Consider a course in a computer accounting software like Tally. Aim to gain auditing accreditation from international auditing associations like the Institute of Internal Auditors (IIA) or the Information Systems Audit and Control Association (ISACA), which are globally recognised and accepted. 

skills and competencies

Can you combine your qualifications with transferable skills? Then you will thrive in your career as an auditor. Some important skills include:

  • analytical skills: your job is to identify issues in documentation and provide effective solutions. To review financial records and analyse company processes, exceptional analytical skills help you investigate and interpret the information.
  • organisation skills: in auditing, you work with a range of financial records, and sometimes you manage many documents from multiple clients. Strong organisational skills help you keep on top of documentation and paperwork to ensure accurate results.
  • communication skills: as an auditor, you work closely with clients and managers. Therefore, it is crucial to have good communication skills to understand your clients' needs and concerns and share solutions. Sometimes, you make presentations on your audit findings or write reports, which require verbal and written communication skills.
  • maths skills: as an auditor, you spend most of the day crunching numbers and analysing records to interpret facts and figures. You can combine your maths skills and proficiency in data analysis and accounting to advance your auditing career.
  • attention to detail: mistakes in auditing have severe consequences, including fines and legal actions. Your attention to details when examining accounting records helps your clients avoid penalties and liabilities.  

FAQs about working as an auditor

FAQs about working as an auditor:

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