Auditing is when an auditor examines and inspects various accounts books and makes sure that all departments are following the guidelines and there is no misconduct. It is usually used to check the accuracy and originality of the financial statement that was provided by the company. Those that are responsible for this position are called auditors, and they are majorly any individuals trained to review and verify accounting data and recognized as Chartered Accountants (CA) under the Chartered Accountant Act 1949. Their role is to look for unqualified opinions and present the financial statements fairly. How much is an auditor’s salary? What do I need to know about an auditor? Any questions relating to auditors will be discussed in this article. let us know more about that the Salaries For Auditor-Know More.
Salaries For Auditors
The average annual salary of auditors in the united states ranges between $52,653 and $70,000 per annum while that of their hourly pay ranges between $24.00 and $37.00. Entry-level with one year of experience receive an annual salary that ranges between $36,524 and $54,790. While Professional levels with more than four years of experience in the field receive an annual salary that ranges between $96,000 and $195,000. Aspiring auditors should understand that salary varies with level, certificates, and other factors. Some of those factors are the professional knowledge and skills of the auditor, the working condition required by the auditor, skepticism, standard compliance, and audit durations and quality control
Which of the Type of Auditors Receive The Highest Salary?
Generally, the various types of auditors have separate roles, but in some aspects, their roles may seem to intertwine thereby, allowing them to work closely together. These editors may vary from federal, forensic, external, and internal auditors. The internal and external auditors receive the highest salary due to their private functions, and it will be discussed below
Internal auditors
An internal auditor is a person employed by an entity to give assurance on the operation of internal control and help management manage risk facing the entity. To maintain the required independence which will help assure the operation of internal control, they need to report to the highest level of governance in the entity. The highest level of authority in the company is usually the body of directors therefore, the auditor needs to report to the board of directors, but if the company or an organization has got audit committee, the internal auditor would report to the audit committee.
In regards to the role of Internal auditors, Their primary function is to make sure procedures are being followed and to look for ways of improving those procedures. Auditors are mostly known to look for loopholes in different departments, from finance to quality. Surprisingly, internal auditors’ job does not look for embezzlement. If embezzlement is suspected, they may look into it, and during their activities, they may find it.
The average annual salary of an internal auditor is $82,935 while the ranges of their entry and professional level fall between $66,768 and $115,890 per annum.
External Auditors
External Audit is the inspection and examination of the financial records of the company. External auditors have the privilege to perform the duty of assessing the certainty of the financial documents of the organization. This is performed mainly to find out misinterpreted records which can lead to fraud, errors, or embezzlement from the company, and also report such records to the stakeholders of the company. External auditors will come from outside the company and inspect the company’s accounts and document evidence once a year when a company is required to audit.
In regards to the role of external auditors, The purpose of an external auditor is to determine the accuracy and reliability of the completed records of the company or accounting records or documents of the clients. They are also in charge of enlightening their client about accounting frameworks and records. Other roles of an external auditor are to report fraudulent activities in the company and express opinions on the financial statements.
The average annual salary of an external auditor is $80,697 while the range of their entry and professional level falls between $42,500 and $116,500 per year
What are the Factors That Increase an Auditor’s Salary?
As an aspiring or an auditor looking for a chance to increase their salary, you should know what you can do to increase your salary. If you don’t, the bullet point below lists some factors that can help you in the journey of boosting your income
Location
There is some location that pays a higher amount to the auditors, and most of these companies are tracked down to the city. Therefore, if you are living in a rural setting, it is expected of you to change your location for you to have an increase in your income
Experience and certification
Experience is the mastermind of being professional. Thus, if you want to make more money as an auditor, you must subdue yourself to gain knowledge. Employers will perceive you as a qualified candidate for their company and thereby, give you a shot in their company. You should know that the more experience you have, the more additional bonuses you are likely to gain. Having more certification in your field will make you qualified for a raise. Sometimes, it will make your work easier when looking for a better job
Conclusion
Auditors are people who ascertain the accuracy of the financial statements provided by the organization they work with. Auditors can come in many forms, but two of it has been deciphered. The annual salary of the different types of auditors with their roles and responsibilities has also been discussed
Frequently Asked Questions
- Is it a good idea to change your career from an external auditor to an internal auditor?
Sure, why not? You have the right to choose whichever profession you enjoy.
Both functions are similar in many ways. An external auditor works for a public audit firm which then executes external audits of other firms that engaged their services. On the other hand, an internal auditor only focuses their audit on the company that employed them.
