Auditing

Introduction:

If you are meticulous and have a flair for numbers, auditing could be a right career choice for you. Auditing, one of the main career options in the field of accounting has a vital role to play in each and every organisation, be it public or private sector. Auditing could be termed as the bread and butter work of accounting which involves checking ledgers and financial statements within an organisation.

Auditing is a systematic process of objectively obtaining and evaluating the accounts or financial records of a government undertaking, department, private business, or other entity based on an established criteria. In other words, Auditing involves the review, analysis and evaluation of processes, products, services, systems, organizations and employees. It is a specialized form of accounting for an organization's financial information, which includes systems, policies and records. While auditing focuses largely on financial information, the process also may involve examination of non financial documents that reveal information about a business's conduct.

Traditionally, audits were mainly associated with gaining information about financial systems and the financial records of a company or a business. According of ICAI Institute of Chartered Accountants of India - 'Auditing is the independent examination of financial information of any entity, whether profit oriented or not, and irrespective of its size or legal form, when such an examination is conducted with a view to expressing an opinion thereon. Auditing is done to know the true and fair view of an organisations financial position'.

Eligibility:

Ø To become an auditor one must have at least a bachelors degree in Accounting. Some employers may prefer those with masters degree in accounting. MBA with specialization in finance can also be a right subject choice.

Ø Courses in economics, business studies and humanities are also helpful. Some universities conduct specialized courses in auditing. Along with subject specialization, computer literacy is also essential. One must take a course in computer accounting software's such as Tally or some other related diplomas.

Ø One can further take up more advanced courses like ICWA, CA, Company Secretary ship or CPA (certified public accountant in the USA)etc.

Ø  There are certain auditor certifications provided by international audit associations such as Institute of Internal auditors (IIA), Information Systems Audit and Control Association (ISACA) etc which are globally accepted. The Institute of Internal auditors gives Certified Internal Auditor (CIA) designation and ISACA provides Certified Information Systems Auditor (CISA) certification, respectively. CISA qualified Auditors have been recognized as qualified to conduct Systems Audit by Reserve Bank of India (RBI), Ministry of Information Technology (MIT), National Stock Exchange, Comptroller and Auditor General of India (C&AG).

Job Prospects & Career Options:

With the growth in the economy and the number of business concerns boosting day by day, demand for auditors are increasing to ensure the credibility of the financial accounting data and financial statements in the private sector as well as public sector companies. One should not pursue a career in auditing merely because it is a lucrative filed, he/she must really love working with numbers and have an aptitude for mathematics. Companies registered under Companies Act are required to get audited annually. This has also made auditing an evergreen career field.

Types of auditors

Ø Internal auditors

Ø External auditors

Ø Government auditors

Ø Forensic auditors

Remuneration:

At entry level an auditor can expect a salary range between Rs.6,000 to Rs.15,000. Once you are established in the field and gained good experience, salary may not be a constraint. External auditors can earn more compared to internal auditors, as external auditors handle more than one organisation. In the case of internal and government auditors salary is fixed to certain extent.

Courses:

» B.Com
» B.Com Taxation
» M.Com
» M.Com. Cost accounting
» M.Com Computer Application
» M.Com. Taxation
» M.Phil Commerce
» Ph.D Commerce
» Certificate in Financial Accounting

» Certified Advance Business Accountant (C.A.B.A)
» Certified Public Accountant (C.P.A)
» Certified Management Accountant (C.M.A)
» Diploma in Financial Accounting

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