Auditors conduct financial audits to ensure that individuals and businesses are following financial accounting and tax reporting regulations. An undergraduate degree is typically required of auditors, though some have also completed advanced degree programs. Candidates for these positions should have bookkeeping or accounting training or experience, as well as knowledge of specific software programs. In many cases, audits are performed by certified accountants, who must hold an accounting license.
During an audit, tax returns, general ledgers, sales contracts, receipts, and invoices are among the documents that are typically examined. The person conducting the audit must make sure that all financial transactions are properly recorded and that no funds are missing. Auditor qualifications frequently include an undergraduate degree in mathematics, finance, accounting, or economics, due to the nature of the work. Some auditors enroll in forensic accounting postgraduate degree programs, which are designed to prepare accountants to piece together financial data during criminal investigations. During investigations into money laundering and other financial crimes, police departments frequently hire forensic accountants.
Many countries have laws requiring publicly traded companies to hire outside accountants to conduct annual audits. In the majority of cases, these accountants must have passed a government-sponsored licensing exam. Some accounting industry associations host a number of different accounting exam courses aimed at preparing accountants to conduct various types of audits. Successful completion of licensing exams is usually required of auditors, but certificates of completion from industry association-sponsored auditing courses may also be required.
While licensed accountants usually lead financial audits, much of the auditing process entails physically gathering files and making copies of documents. Typically, clerks who perform these tasks are not required to be licensed. A high school diploma and some prior bookkeeping or administrative experience are frequently required auditor qualifications for people employed in these junior positions. Some companies require junior clerks to have prior experience with specific types of software; those who do not have this experience may be able to get these jobs by taking short-term community college training courses.
Many accounting firms specialize in auditing companies that work in specific industries, such as banking and insurance. Some of these firms prefer to hire auditors with experience in the industry, so desired auditor qualifications listed on job postings may include prior experience as a lender, insurance agent, or investment banker. Furthermore, audits of multinational corporations frequently take place in foreign locations, necessitating the use of a second language by auditors.