Detailed Information About Importance Of An Auditor For An Organization

By Author: harleyreuben
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Who is an Auditor?
• Auditor is nothing but a type of accountant. Verifying the financial records of an organization is the major task performed by an auditor. Various sources are studied by the auditors for determining the true financial condition of the organization.
• They analyze the books and records of the company for checking accounting and bookkeeping methods followed by the company. Company books are compared with bank records, creditors, brokers and all the people who deal with the company. Additionally, they will also check the department books within an organization.
• In general, there are two types of auditors they are: internal auditors and external auditors. External auditors are the people who work for public accounting firms or they can also be self employed. Industries, government agencies, businesses make contract with auditors for verifying and certifying their financial statements of them.
• The companies which are running successfully will audit their records once in a year. After verifying the company records, auditors give the financial condition of that particular ...
... company to the creditors and shareholders.
• All the account transactions in the company are looked by the auditor. Some of the auditors will prepare the budget analysis for companies. The work done by both internal and external auditors will be same but internal auditors are paid salary by one company. They generate reports on the working of accounting policies and are submitted to the management.
Skills and interests
• Good analytical skills are mandatory.
• It is necessary to possess organizational skills.
• You must be ready to work under pressure for meeting the deadline.
• It is mandatory to have good communication skills.
• He must be a computer literate.
• He must work effectively with minimal supervision.
Duties and Responsibilities of an auditor
• Auditors report to the management on asset utilization and suggest changes in financial activities for increasing the profits of the company.
• He is responsible for preparing a detailed audit report.
• To evaluate taxpayers accounts and he also conduct on-site audits.
• In order to find tax liability, finances of the taxpayers are evaluated by him.
• In order to find violations in rules and regulations, he analyzes the information gathered.
How much does an auditor make?
The salaries paid to auditors with experience are very high. It is estimated that the career in this field is brighter. Experienced auditors can even run their own private firm after gaining sufficient experience. The median salary paid to an auditor is about $50,770 per year. The top ten percent of the auditors will earn up to $54,445 per annum. Additionally, they are also give bonuses ranging from $485o to $5184 per annum. Experience is considered as an integral factor for determining auditor salary. A fresher in this field is paid in between $36,946 and $54,893 where as a professional with 5 years of experience earnings fall in between $38,280 and $62,998 per annum. Pay package is also affected by geographical location as the demand and economical rate differ from state to state. In addition to traditional salaries, they also enjoy benefits such as sick leaves, paid vacations, etc.

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