Auditor

Also known as:

Accountant (Audit)

Introduction

Auditors carry out checks on the accounts of companies and public bodies. They ensure that organisations' finances are sound and that all legal and financial reporting standards are being met.

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Work Activities

Auditors are professionally qualified accountants who specialise in audits. Auditing involves examining organisations' accounts to ensure that they are accurate and that finances are well controlled.

There are two types of auditor - internal and external.

Internal auditors review an organisation's finances to give advice on how well it is managed financially, and how it can improve efficiency and financial control. Internal auditors can be employees of the organisation or specialists brought in from outside.

External auditors must be legally registered to carry out an independent assessment of an organisation's annual accounts to make sure they provide accurate information and give a fair view of the financial position. Limited companies must, by law, have their accounts audited externally by a registered external auditor. The auditor examines the accounts to check they have been accurately prepared in accordance with the Companies Act.

Government departments and other public bodies are audited by specialist public finance accountants.

External auditors do some of their work on the organisation's premises. They must gain a thorough knowledge of the client's business and gather evidence until they are certain that there are no significant errors in the accounts.

They carry out audit tests and examine samples of documents and records to check that all transactions, assets and liabilities have been properly recorded. They might inspect assets. They might seek further details from within and outside the organisation. They may compare current accounts with the previous year, or with a comparable organisation's accounts.

Auditors then prepare a report for presentation to the organisation's management, shareholders or governing body.

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Personal Qualities and Skills

To be an auditor you need to be highly numerate, and able to analyse and interpret figures and complicated accounts. You must be able to understand and handle a wide range of other complex information. As accounting systems are now computerised, you would spend a lot of your time using sophisticated computer software.

You should have an enquiring mind, good problem-solving skills, a good eye for detail and be accurate and methodical in your work. You must be able to work under pressure and meet deadlines.

You need good communication skills to explain results clearly and concisely and to write reports.

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Pay and Opportunities

A registered external auditor must first qualify as an accountant with one of the professional accountancy bodies which are recognised as a qualifying bodies under the Companies Act.

Salaries for accountants vary, depending on location and sector.

The pay rates given below are approximate.

Starting salaries for trainees are from around £11,000 a year (AAT trainee), graduate trainees from £15,000. - £24,000 a year. Qualified accountants can earn in the range of £30,000 - £45,000 a year, and senior accountants can earn £46,000 - £60,000. Directors can earn around £46,000 -£75,000 and partners can make around £76,000 - £91,000 a year.

Higher salaries are available depending on the employer, role and branch of accountancy.

Auditors usually work 35-40 hours Monday to Friday. However, they may need to work late or at weekends at peak times - at the end of the financial year, for example.

Jobs exist throughout the UK, particularly in cities and larger towns. Employers in the private sector are accountancy practices (sometimes now known as public practice).

Auditors in the public sector in Scotland work for Audit Scotland which supports the Auditor General and the Accounts Commission. There are similar structures in England, Northern Ireland and Wales.

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Adult Opportunities

It is illegal for any organisation to set age limits for entry to employment, education or training, unless they can show there is a real need to have these limits.

The Institute of Internal Auditors (IIA) will consider applications from those who do not have the minimum qualifications, provided their employer confirms their ability to cope with the demands of the programme.

The IIA offers distance learning with some face-to-face induction/revision attended sessions.

If you don't have the qualifications needed to enter your chosen degree course, a college or university Access course (eg, Access to Business) could be the way in. These courses are designed for people who have not followed the usual routes into higher education. No formal qualifications are usually needed, but you should check this with individual colleges.

You could follow this with accountancy training.

If you are a qualified and fully experienced accounting technician, you can go on to study for auditing qualifications.

Sponsorships from some of the larger accounting or professional services firms, and from public sector organisations such as the National Audit Office (NAO) can be available for those on degree-level study.

Audit Scotland, the office of the Auditor General for Scotland, offers traineeships for graduates leading to professional qualifications.

• 8% of people who work in occupations such as auditor work part-time.
• 13% have flexible hours.
• 1% of employees work on a temporary basis.

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