How to Become an Auditor
Becoming a successful auditor will depend upon how well you focus on and perform in three main areas: educational achievements, related experience and effective networking.
Education Requirements for Auditors
In order to become an auditor, you will need to earn a bachelor’s degree from an accredited institution of higher learning. If you do not already have a bachelor’s degree, you will need to begin today to find a college which will fit your budget, geographics and goal of becoming an auditor. The best way to conduct a college search is to have a notebook in which you can record or journal your research and findings. Use one or more pages for each college which you investigate. Chronicle the date of your queries, the strength or weakness of the relevant departments, conversations with admissions counselors, financial considerations, etc.
Make sure to scrutinize all colleges and universities carefully in ascertaining their reputations and note your findings in your journal. Read reviews as to their suitability for your goals. Investigate thoroughly, and make sure they are an accredited institution of higher learning. Accreditation means the college or university has maintained rigorous academic standards and has received at least one endorsement from the following: the Northwest Commission on Colleges and Universities (NWCCU), the Western Association of Schools and Colleges (WASC) the New England Association of Schools and Colleges (NEASC), the Middle States Commission on Higher Education (MSCHE), or the Southern Association of Colleges and Schools (SACS).
Accreditation will also enable you to receive federal financial aid. In other words, certain grants and loans will not be available to you if you choose to attend a non-accredited school. Online programs are available from some of the most respected colleges and universities, and of course, there are traditional on-campus options.
An option available to you if you cannot financially afford to attend a four-year program initially, is attending a junior or community college to satisfy your general education requirements. One important thing to remember—make sure your credits from the junior or community college will transfer to the 4-year college you are interested in eventually attending.
Also, many colleges offer fast-track programs where you can earn a bachelor’s degree and a master’s degree concurrently. These programs are well worth your consideration. A master’s degree will bump you to the front of the line when competing within the job market for auditors.
Here are some examples of the bachelor’s degrees which will open doors for you once you complete the programs:
- Bachelor of Accountancy
- Bachelor of Science in Accounting
- Bachelor of Business Administration with a Concentration in Accounting or Auditing
- Bachelor of Science in Finance
The BA in Accountancy is specifically tailored to prepare students for careers in accounting. It covers topics such as financial accounting, managerial accounting, auditing, taxation, and accounting information systems.
The BS in Accounting is similar to the BA in Accountancy, and a college may offer one of the programs and not the other. The BS focuses on accounting principles, financial reporting, taxation, auditing, and other core areas of accounting.
Many universities offer BBA programs with concentrations or specializations in accounting or auditing. These programs provide a broad business foundation along with specialized coursework in accounting.
While less common for auditors, a degree in finance can still provide a solid foundation for a career in auditing, especially for roles that involve financial statement analysis or internal auditing.
Gaining Experience Through Networking
Two facets of the three-pronged approach to becoming an auditor can be achieved simultaneously. The way to waltz into experience (versus clawing your way through the competition), is to join a professional trade organization or association. Membership in these organizations will introduce you to the various mentoring programs, job boards and opportunities for internships. Internships are vital to your career and are available for aspiring auditors who are in the process of earning their bachelor’s degree or have just completed their bachelor’s and graduated.
An internship is a means of access to otherwise closed systems. Although they typically only last between 6-10 weeks, two things will happen. First, you will be able to show the employer/internship host, how capable you are, and how well you perform in the world of auditing. Second, you may actually bypass the experience requirement and be offered an entry-level position for one very important reason: the whole purpose behind companies having internships is to have first choice and knowledge of future candidates for their upcoming positions. Here is an example of one professional organization which can provide both the benefits of networking, and leads to internships, and a description of the association in their own words:
The Institute of Internal Auditors (IIA) https://www.theiia.org/en/
“Established in 1941, The Institute of Internal Auditors (IIA) is an international professional association with global headquarters in Lake Mary, Florida, USA. The IIA is the internal audit profession’s leader in standards, certification, education, research, and technical guidance throughout the world. Generally, members work in internal auditing, risk management, governance, internal control, information technology audit, education, and security.
Globally, The IIA has more than 245,000 members. The IIA in North America comprises nearly 150 chapters serving more than 70,000 members in the United States, Canada, the Caribbean (Bahamas, Barbados, Cayman Islands, Curacao, Jamaica, and Puerto Rico), Bermuda, and Trinidad & Tobago. Members enjoy benefits offered by the North American Service Center, including local, national, and global professional networking; world-class training; certification; standards and guidance; research; executive development; career opportunities; and more. IIA members throughout North America enjoy free members-only webinars and member savings on national conferences such as the General Audit Management (GAM) and Ignite Conferences.”
Here are the categories of companies and entities who have established reputations for their internship programs.
- Public Accounting Firms
- Corporate Internal Audit Departments
- Government Agencies
- Non-Profit Organizations
- Financial Institutions
Large accounting firms like the Big Four (PricewaterhouseCoopers, Deloitte, Ernst & Young, and KPMG) as well as mid-size and regional firms have prestigious auditing internships which provide hands-on experience in conducting financial statement audits, internal audits, and other assurance services for clients across various industries.
Many corporations have internal audit departments responsible for assessing internal controls, risk management, and compliance with policies and regulations. These departments have internships for students interested in gaining experience in internal auditing. Some of the companies known for their programs include: General Electric, Procter & Gamble, Johnson & Johnson, Microsoft, Walmart, PepsiCo, Boeing, IBM, Coca-Cola, and Amazon.
Government agencies at all levels–federal, state, and local, have auditing internships, particularly in areas such as government accountability, financial management, and performance auditing.
Non-profit organizations, particularly those with complex financial operations, sponsor auditing internships to students interested in gaining experience in nonprofit accounting and auditing.
Banks, investment firms, and other financial institutions advertise auditing internships focused on internal controls, risk assessment, and compliance with regulatory requirements.
Job Outlook for Auditors
According to the U.S. Bureau of Labor Statistics (https://www.bls.gov/), Auditors have promising opportunities for the time period spanning 2022-2032. The field is growing by 4% per year, which is the average growth rate. Government experts predict that each year over 126,500 openings will become available (between 2022-2032), due to replacing current auditors who will leave the profession, leave the work force and/or retire. Over the ten-year time span (2022-2032) it is projected that a total of 67,400 new positions will be created. In 2022 there were 1,538,400 individuals working as auditors. The median pay per year was $78,000, while the median hourly wage was $37.50. (As a reminder, the “median” amount is not an average, it is the middle value of a dataset. For the U.S. BLS definition go to: https://www.bls.gov/cps/definitions.htm#medianearnings) .
By pursuing your education, participating in an internship program and exploring networking opportunities, you will be on your way to a successful and rewarding career as an auditor.
