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What is Auditing?

The audit provides users, such as lenders and investors, confidence in financial statements. An audit under ethical requirements enables the auditor to make a judgment. To make a judgment, the auditor collects evidence, observes, checks compares and confirms it until it has obtained reasonable assurance.

What do auditors do?

Most auditors create, analyze and review financial documents.

  • The auditor keeps records. They're working documents that form the basis and support of each of his statements. The audit report also states the audit specifications. The auditor is not responsible for activities that occur after the date of the audit report.

  • Auditors check the quality of financial books. He also checks that the company's funds are properly managed. 

  • They also make sure that the financial records, books and ledgers are in compliance with the rules and regulations.

How to become an auditor?

To become an auditor one must have at least a bachelor's degree in Accounting. You can also take auditing courses available by the certified agencies. Some employers may prefer those with a masters degree in accounting. MBA with specialization in finance can also be the right subject choice.

Top Colleges for auditing course

  • National Institute of Financial Management (NIFM)

  • Institute Of Forensic Accounting & Investigative Audit

  • The Institute Of Internal Auditors-Delhi Chapter

  • XLRI Xavier School of Management

  • Institute of Internal Auditors-India

Popular colleges offering auditing course

  • Brihan Maharashtra College of Commerce (BMCC)

  • Indian Institute of Finance and Accounts, Pune

  • EduPristine, Mumbai

  • Institute of Cost Accountants of India

What are the skills required?

  • Aptitude for mathematics

  • Critical thinking and analysis

  • Strong attention to details

What are the Job Prospects?

With the growth in the economy and the number of business concerns boosting day by day, demand for auditors is increasing to ensure the credibility of the financial accounting data and financial statements in the private sector as well as public sector companies. 

One should not pursue a career in auditing merely because it is a lucrative field, he/she must really love working with numbers and have an aptitude for mathematics. Companies registered under the Companies Act are required to get audited annually. This has also made auditing an evergreen career field.

Type of auditor:- 

  1. There are internal auditors employed by the company who audit financial statements. Internal auditors are a combination of accountants and auditors. They work on the financial information of their companies.

  2. The external auditor performs the same functions as the internal auditor. But, the external auditor is commissioned by a third party. This ensures that his evaluations are independent and impartial.

  3. Other tasks in this government include working as a Payday Officer for tax districts.

  4. The auditor is required to keep warranty books and accounting documents.

  5. The auditor participates in the preparation and management of the district budget.

How much does an Auditor make?

Salaries reported by Payscale (per annum)

  • Avg. Salary in India - Rs 482,023

  • Avg. Salary less than 1 year - Rs 346,289

  • Avg. Early Career Salary (1-4 years) - Rs 396,063

  • Mid Career Salary (5-9 years) - Rs 646,616

  • Experienced Salary (10-19 years) - Rs 1,000,000

Who are the major recruiters?

  • PricewaterhouseCoopers

  • Deloitte Touche Tohmatsu 

  • Ernst & Young

  • KPMG

  • Grant Thornton LLP

  • BDO

  • RSM Tenon Group

  • Baker Tilly

  • Smith & Williamson

  • PKF

  • Boston Consulting Group

  • Goldman Sachs

  • Google

  • RSM International

  • SS Kothari Mehta & Co.

  • Lodha & Co.

  • Luthra & Luthra

Beside joining these big firms, you can also start your private practice.

Interesting Facts

In the United Kingdom in 2011, it was reported that the four largest companies audited 99% of companies in the FTSE 100 index and 96% of companies in the FTSE 250 index, an index of leading listed companies with medium capitalization.