HOW TO BECOME AN AUDITOR?
Published on: December 12, 2024
WHO IS AN AUDITOR?
An auditor examines the financial statements prepared by an entity, expresses his opinion on it and conveys the same through his audit report. The investors, financial institutions or even the government rely their confidence on the business concern on the basis of the audit report.
HOW TO BECOME AN AUDITOR?
To become an auditor, one must :
· obtain an under-graduate degree in accounting, finance, taxation or any related fields.
· Following, a master’s degree in the related field can be an added advantage.
· Having a degree backed by a professional certification can make an auditor earn huge reputation, professional competence and skill
WHO IS A COMPANY AUDITOR?
An auditor who audits a company by following the Companies Act 2013 is called a Company Auditor. He primarily examines the financial statements of a company, ensures the compliance of laws and prepares a report on its financial health for the shareholders of that company.
According to the Companies Act 2013, an auditor appointed under the said act should be a Chartered Accountant who is a member of the Institute of Chartered Accountants of India (ICAI) holding a Certificate of Practice.
HOW TO BECOME AN AUDITOR WITHOUT A DEGREE
There are a wide variety of professional courses which a student can pursue after clearing 12th boards without a degree :
1. Chartered Accountant (CA)
There are three levels to become a Chartered Accountant – Foundation (6 months), Intermediate (8 months) and Final (after completing 2 years of articleship). The course has its core subjects as Accounting, Audit, Taxation, Finance and Law. CA itself has the worth of a post graduate degree which calls off the need to have a degree.
· Duration : 4.5 – 5 years
· Salary – Rs. 8 LPA which can rise upto Rs. 75 LPA depending on experience and knowledge
· High Initial Average Salary – Rs. 25 LPA
2. Cost and Management Accountant (CMA)
It is a professional course aimed at students pursuing their career in Costing, Finance, Accountancy, Audit and Taxation. It is offered by the Institute of Cost Accountants of India (ICMAI) and consists of three levels: Foundation, Intermediate, and Final. It is much similar to CA course but has its core subject in Costing.
· Duration : 3-4 years.
· Salary – Rs. 8 LPA which can rise upto Rs. 60 LPA depending on experience and knowledge
· High Initial Average Salary – Rs. 24 LPA
3. Association of Chartered Certified Accountants (ACCA)
The ACCA is an International Chartered Accountancy course which is recognised globally. The subject expertise of this course lies in Financial Reporting, Financial Management and International Taxation. Candidates must pass a total of 13 exams to qualify for ACCA membership. The initial 4 exams can be exempted if one holds a degree. The course also requires candidates to have practical experience of minimum 36 months and achieve specific performance objectives during that time.
· Duration : 2.5 to 4 years (depends upon the pace of clearing the exams and the paper exemptions on prior qualifications)
· Salary – Rs. 7 LPA which can rise upto Rs. 32 LPA depending on experience and knowledge
· High Initial Average Salary – Rs. 15 LPA
HOW TO BECOME AN AUDITOR AFTER 12th STANDARD
· Obtain a degree in the field of commerce
· Get a professional certification in any of the Indian or foreign courses mentioned above
HOW TO BECOME AN AUDITOR IN INDIA
One can become an auditor in India by qualifying any of the professional courses mentioned above soon after their 12th standard. They can also follow the same after their under-graduation or post graduation in the field of commerce.
TYPES OF AUDITORS
Some types of auditors are dicussed below:
1. Internal Auditors
They are actually the employees of an organisation who analyses the financial statements of an entity and reports their findings to the senior management.
2. External Auditors
They are appointed by the Board of Directors to examine the financial statements of an entity prepared by the management and give their report on the same which is used by stakeholders.
3. Government Auditors
They are the auditors of government bodies who ensures the compliance of rules and regulations in such bodies.
4. Forensic Auditors
The auditors who examine the financial records of an entity with an investigation objective and are chiefly concerned with fraud detection.
SALARY OF AN AUDITOR
The salary of an auditor mainly depends on his the educational background as well as his work experience. It can typically range from Rs. 6 lakhs to 9 lakhs. The starting salary may range between Rs. 2- 3 lakhs per annum.
The auditor’s salary in different cities is given below:
FAQs
1. What is the qualification for an auditor?
Ans : Having a degree in the commerce field or holding a professional certification
2. Can I become an auditor without CA?
Ans : Yes, one can become an auditor by having a degree in concerned field or by holding relevant professional certification other than CA.
3. How do I start career as an auditor?
· Get a degree or a professional certificate
· Gain practical experience for the same.
