An auditor’s salary can vary depending on a number of factors, including his level of education, many years of experience, and the size and industry of the company.
The environment in which the financial auditor works directly affects his annual salary. Smaller boutique companies that hire financial auditors do not pay as much as larger corporate organizations.
Financial auditors who work independently on the basis of advice or as sole proprietors can earn more than auditors who work for a company, as they are often not entitled to additional benefits.
What Does A Financial Auditor Do?
The financial auditor verifies that the company’s financial statements are in order and comply with generally accepted accounting principles (GAAP).
Financial auditors and accountants perform similar tasks in terms of reviewing financial data, but auditors are more focused on detecting fraud or error in corporate financial documents.
Financial Auditor Job Description
The financial auditor examines the company’s financial statements, documents, and data and accounting records. Financial auditors collect information from the company’s financial reporting systems, account balances, cash flow statements, income statements, balance sheets, tax returns and internal control systems.
The information is then reviewed and used to present all financial data relating to a particular organization in an accurate, fair manner, ensuring that there is no fraud or gross error in the company.
What Is The Average Auditor Salary?
The average annual salary of financial auditor in 2020 was 73,560 US dollars; however, this figure also includes information on the average salary for accountants.
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How To Become A Financial Auditor In USA
Get A Degree
Auditors must have a bachelor’s degree in accounting, finance, or a related field. Some employers prefer to hire auditors who have a master’s degree in accounting or business administration with a concentration in accounting. Relevant coursework includes financial accounting, auditing, taxation, and business law and business communication.
Get Training And Experience
Auditors receive on-the-job training in the form of internships or entry-level positions. During these periods, they study specific processes and procedures of the company. They also work closely with more experienced auditors to learn the basics.
Get Certifications And Licenses
Certificates can be an advantage for labor market auditors because they allow them to demonstrate their professional competence. There are several different certifications available to auditors that can help make them more competitive candidates for jobs or promotions.
Financial Auditor Career Prospects
The Bureau of Labor Statistics (BLS) predicts that the positions of auditors and accountants will increase by 10 percent by 2026, and the average salary of an accountant and auditor will be $ 69,350 per year.
As in other professions, many years of experience and valuable skills can significantly increase the earnings of the auditor. The highest earnings in this industry exceed $ 122,220 in annual wages. High-paid auditors typically work in the financial and insurance industries or take on leadership roles.
Auditors with skills in risk management, financial analysis and financial reporting can expect higher-than-average pay, according to Payscale. Auditors with 10 to 20 years of experience are often 25 percent more involved than beginners.
People who have math skills and like to solve intriguing problems may find that a well-paid, fast-growing field of auditing is the right place for them.
What Is Internal Auditor Salary?
The salaries of internal auditors vary greatly depending on location and experience. In coastal areas such as New York, Los Angeles, Seattle, Boston and Houston, average wages are much higher, while inland areas are usually lower.
The national average starting salary for entry-level auditors with zero to five years of experience is approximately $ 60,000 and is growing rapidly with experience.
As experience increases, so does the salary and the internal auditor is no exception. With one to three years of experience, the internal auditor earned between $51,000 and $69,000 in a medium-sized corporation and $55,000 to $73,500 in a large corporation in 2012.
At the top level, internal auditors earn an average of $65,000 to $84,250 per year in a medium size company and $94,000 a year in a large company. Audit managers earned even more, earning an average of $ 78,750 to $ 106,250 per year in a medium-sized company and $ 90,000 to $ 127,000 in a large company.
The career of an internal auditor provides professionals with profitable and enjoyable opportunities to verify financial documents. Organizations rely on experts in financial decision-making to help create a strong labor market that provides a high demand for audit professionals. In fact, the Bureau of Labor Statistics (BLS) predicts that this area will grow by 6% from 2018 to 2028.
What Does An Internal Auditor Do?
The role of the internal auditor is to impartially ensure that the company complies with laws and regulations, and to ensure that departments and employees follow proper procedures.
The internal auditor audits fiscal reports, expense reports, inventories, and almost anything that should be flawless in the case of an external audit by the Securities and Exchange Commission (SEC) or any other government regulator.
What Is IT Auditor Salary?
Most information technology auditors’ salaries currently range from $ 75,500 (25th percentile) to $ 105,000 (75th percentile), and the highest earnings (90th percentile) earn $ 128,500 annually in the United States.
The average salary range for an IT auditor varies widely (as much as $ 29,500), suggesting that there may be many opportunities to promote and increase pay depending on skill level, location, and years of experience.
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What Is Senior Auditor Salary?
A senior auditor can earn an average of $73,560 to over $128,000 a year, even if the actual amount depends on the type of organization you work for. Senior auditors also receive standard benefits, such as health, life and health insurance, paid annual leave, and Plan 401 (k). Some companies also provide additional benefits, such as cost accounting and the use of a company car.
For the position of senior auditor, employers prefer candidates with more than four years of experience in auditing. Moreover, the senior auditor is likely to work in local or public authorities, as well as in private and public audit and accounting firms.
The senior auditor mostly works in the office, but you can travel to several places if you work for a government agency, a government accounting firm, or a private firm with multiple locations.
What Is Certified Internal Auditor Salary?
CIA certification allows internal auditors to earn between $ 16,750 and $ 157,250 more than non-certified internal auditors per year, depending on their position and years of experience. Similarly, certified internal auditors in finance and accounting can earn $ 25,250-81,250 more per year than regular internal auditors.
Certification of Certified Internal Auditor (CIA) demonstrates commitment to internal audit and demonstrates trust in this area. The CIA may receive higher salaries and seek more open opportunities than non-certified accountants. Only 41% of test takers passed the exam in 2020, which confirmed the CIA’s sample results.
Auditor Salary FAQs
What Does A Senior Auditor Do?
companies, local, federal, and state governments, as well as individual clients. A senior auditor reviews the company’s activities to ensure that it complies with corporate and government policies. As a senior auditor, you will oversee fieldwork, planning, and reporting on audit engagements.
Who Is A Certified Internal Auditor?
A Certified Internal Auditor (CIA) is a person who meets the certification requirements established by the Institute of Internal Auditors (IIA). Requirements include education, experience and passing the exam. Achieving the certificate of certified internal auditor is tangible evidence of compliance with the professional qualifications established by the IIA.
What Does An IT Auditor Do?
An information technology (IT) auditor conducts in-depth analysis to oversee the implementation of management-assigned technology functions. They must use reliable methods to gather evidence for the audit. The IT auditor collects and analyzes data relevant to the function or area to form an objective opinion about the effectiveness, efficiency and adequacy of the internal control of the activities being evaluated.
