Top 10 Tax Auditor Certifications

Certifications for a tax auditor are important in the job market because they demonstrate that the tax auditor has met certain standards of knowledge and proficiency. Having a certification in tax auditing shows potential employers that the individual is competent, trustworthy, and knowledgeable in the field of taxation. Certification also gives employers confidence that their employees have received specialized training and can be relied upon to accurately complete all necessary tasks associated with auditing. Finally, certifications provide a benchmark for hiring decisions as employers can easily compare applicants based on their respective credentials.

This article reviews some of the leading certifications for Tax Auditors and outlines how they can help to further a tax auditor's career.

What are Tax Auditor Certifications?

Tax auditor certification is a professional designation that recognizes an individual’s competence and expertise in conducting tax audits. It is awarded by the American Institute of Certified Public Accountants (AICPA) or other recognized organizations. Tax auditors must meet certain academic and experience requirements to receive this certification, including a bachelor’s degree in accounting, two years of experience in public accounting, completion of at least 80 hours of continuing education, and passing an exam.

The purpose of this certification is to ensure that tax auditors have the necessary knowledge and skills to properly conduct their audits. A certified tax auditor will be able to identify any discrepancies or errors in a company’s financial statements and make sure that all applicable taxes are paid accurately and on time. This helps protect taxpayers from incurring unnecessary additional taxes or penalties due to incorrect filings. Having a certified tax auditor also provides assurance to companies that they are compliant with all applicable laws and regulations regarding taxation. Additionally, having a certified tax auditor can help reduce audit costs by ensuring that all relevant information is gathered correctly and efficiently.

Pro Tip: Make sure to research the various certifications available for tax auditors. Many certifications require ongoing education and training, so it's important to choose one that best suits your needs and provides the most up-to-date information on taxation laws, regulations, and procedures. Additionally, consider the cost of certification, as well as any additional fees or requirements associated with maintaining certification.

Related: What does a Tax Auditor do?

Top 10 Tax Auditor Certifications

Here’s our list of the best certifications available to Tax Auditors today.

1. Certified Public Accountant (CPA)

A Certified Public Accountant (CPA) is a professional designation given to individuals who have met certain educational, work experience, and examination requirements set by the state in which they are licensed. CPAs are certified to provide a variety of accounting services, including auditing financial statements, preparing taxes, and providing financial advice.

It typically takes four years of college education in accounting or related fields plus one year of work experience to become eligible for the CPA exam. Depending on the state, applicants may also need to complete continuing education credits each year to maintain their license.

To get a CPA license, applicants must first pass the Uniform CPA Exam administered by the American Institute of Certified Public Accountants (AICPA). The exam consists of four sections: Auditing & Attestation; Business Environment & Concepts; Financial Accounting & Reporting; and Regulation. Each section must be passed separately within an 18-month period.

The cost of becoming a CPA varies depending on the state in which you are applying for licensure. Generally speaking, it can cost anywhere from $100-$1,000 for application fees and additional costs such as background checks and fingerprinting fees. Additionally, there will be costs associated with taking the CPA exam such as registration fees ($200-$300) and study materials ($200-$400).

2. Certified Internal Auditor (CIA)

Certified Internal Auditor (CIA) is a professional certification offered by the Institute of Internal Auditors (IIA). It is one of the most prestigious certifications in the field of internal auditing and is recognized around the world. The CIA certification demonstrates an individual’s commitment to the highest standards of professional practice and their knowledge of internal auditing principles, techniques, and practices.

In order to obtain the CIA certification, candidates must complete a three-part exam that covers topics such as risk management, audit process and methods, financial accounting, information systems control, and other related areas. Candidates must also have at least two years of relevant work experience in internal auditing or related fields.

The cost for taking the exam varies depending on which country you are taking it in; however, it typically ranges from $400 - $600 USD per part. The total cost for all three parts is approximately $1,200 USD. Additionally, there may be additional fees associated with obtaining study materials or registering for review courses.

The time required to complete all three parts of the exam depends on how much time you devote to studying and preparing for each part. Generally speaking, it takes between six months to one year to complete all three parts if you are studying full-time or devoting significant amounts of time each week to studying.

3. Certified Tax Consultant (CTC)

A Certified Tax Consultant (CTC) is a professional who has completed specialized training and passed an examination in taxation. CTCs are knowledgeable in the laws and regulations that govern taxes, as well as tax planning and preparation. They are qualified to provide advice on complex tax matters, such as estate planning, business entity formation, and international taxation.

It typically takes two to three years of study to become a CTC. This includes completing courses in accounting, finance, economics, taxation, law, and other related topics. After completing the educational requirements for certification, applicants must pass a comprehensive exam administered by the American Institute of Certified Tax Consultants (AICTC).

To become a CTC, you must first meet certain eligibility requirements set forth by the AICTC. These include having an undergraduate degree from an accredited college or university; at least two years of experience in accounting or tax-related work; and passing the CTC exam with a score of at least 75%. Once these requirements have been met, applicants can apply for certification through the AICTC website.

The cost of becoming a CTC varies depending on your educational background and experience level. Generally speaking, it will cost between $500-$2,000 to complete the necessary coursework and take the exam. Additionally, there may be fees associated with applying for certification through the AICTC website.

4. Certified Financial Planner (CFP)

Certified Financial Planner (CFP) is a professional designation given by the Certified Financial Planner Board of Standards, Inc. (CFP Board). The CFP designation is considered to be the highest standard of excellence in personal financial planning and is recognized as such throughout the world.

It typically takes three to five years to obtain the CFP designation. To become a CFP, individuals must meet certain educational, experience, and ethical requirements set forth by the CFP Board. These include completing a college-level course of study that includes topics such as investments, estate planning, insurance, retirement planning and tax planning; passing an exam administered by the CFP Board; having at least three years of full-time financial planning related experience; and agreeing to abide by the CFP Board’s Code of Ethics and Professional Responsibility.

The cost for obtaining the CFP designation varies depending on factors such as the type of education program you choose and whether you take advantage of any discounts or special offers. Generally speaking, it will cost between $2,000-$4,000 USD to become a CFP.

5. Chartered Tax Professional (CTP)

Chartered Tax Professional (CTP) is a professional designation awarded by the Canadian Institute of Chartered Accountants (CICA). The CTP designation is the highest level of tax expertise in Canada and recognizes individuals who have achieved a significant level of knowledge and expertise in taxation.

It takes approximately two years to obtain the CTP designation, depending on an individual’s prior experience and education. To become a CTP, individuals must first complete an approved program of study, such as the CICA’s Chartered Professional Accountant (CPA) program or another accredited tax program. After completing the educational requirements, candidates must pass the CICA's Comprehensive Tax Exam. Upon successful completion of the exam, candidates are eligible to apply for the CTP designation.

The cost to obtain the CTP designation varies depending on which educational program you choose to pursue. Generally speaking, tuition for a full-time undergraduate degree in accounting or taxation will range from $10,000-$20,000 CAD per year. The cost to take and pass the Comprehensive Tax Exam is approximately $1,500 CAD.

In addition to tuition costs, there may be other fees associated with obtaining your CTP designation such as application fees or membership dues with professional organizations like CICA.

6. Accredited Tax Advisor (ATA)

Accredited Tax Advisor (ATA) is a professional designation awarded by the National Association of Tax Professionals (NATP). The ATA credential recognizes individuals who have demonstrated a high level of expertise in tax preparation, tax planning, and other related areas.

It typically takes between six months to one year to complete the requirements for the ATA credential. To obtain the ATA credential, individuals must first pass an exam that covers topics such as individual taxation, business taxation, and ethics. They must also meet certain educational requirements and demonstrate a minimum of two years of experience in tax preparation or related fields.

The cost of obtaining the ATA credential varies depending on whether you are already an NATP member or not. For non-members, it costs $400 to take the exam plus $50 for each year that you need to renew your membership. For members, it costs $200 to take the exam plus $25 for each year that you need to renew your membership.

In addition to passing the exam and meeting educational requirements, applicants must also adhere to NATP’s Code of Ethics and Professional Responsibility and complete at least 24 hours of continuing education every two years in order to maintain their accreditation.

7. Enrolled Agent (EA)

Enrolled Agent (EA) is a federally authorized tax practitioner who has technical expertise in the field of taxation and is empowered by the U.S. Department of Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service (IRS). An Enrolled Agent must demonstrate to the IRS that they have met certain educational and ethical requirements, and they must pass a comprehensive three-part examination administered by the IRS.

It can take up to six months or longer to become an Enrolled Agent after you have completed all necessary steps. The process includes passing a three-part exam, completing 72 hours of continuing education every three years, and filing an application with the IRS.

To become an Enrolled Agent, you must first meet certain qualifications including having a valid Social Security number, passing a background check, and demonstrating competency in tax matters through either professional experience or passing an exam. After meeting these qualifications, you can register for the Special Enrollment Examination (SEE) which consists of three parts: Individual Taxation; Business Taxation; and Representation, Practice & Procedures. You will need to pass all three parts within two years before you can become an Enrolled Agent.

The cost for becoming an Enrolled Agent varies depending on what materials you use to study for the exam as well as any fees associated with taking it. Generally speaking, it can cost anywhere from $500-$2,000 depending on your individual circumstances.

8. Chartered Global Management Accountant (CGMA)

Chartered Global Management Accountant (CGMA) is a professional designation that recognizes the skills and knowledge of management accountants. It is jointly awarded by the American Institute of Certified Public Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA). The CGMA designation provides assurance to employers, investors, and other stakeholders that holders of the credential have met rigorous standards for technical proficiency and business acumen.

It typically takes three years to become a CGMA. To be eligible for this designation, you must have an undergraduate degree in accounting or a related field; pass all four parts of the CPA exam; complete two years of professional experience; and pass the CGMA Exam.

The cost to take the CGMA Exam varies depending on which country you are taking it in. Generally, it costs around $1,000 USD to take the exam.

9. Accredited Tax Preparer (ATP)

Accredited Tax Preparer (ATP) is a professional designation awarded by the National Association of Tax Professionals (NATP). The ATP designation is designed to recognize tax professionals who have demonstrated an advanced level of knowledge and proficiency in preparing individual and small business income tax returns.

It typically takes around 4-6 months to complete the coursework and obtain the ATP designation. To get the ATP designation, you must first become a member of NATP and then complete the Accredited Tax Preparer course. This course consists of four modules that cover topics such as federal tax law, ethics, filing requirements, deductions, credits, and more. After completing all four modules, you must pass a comprehensive exam before receiving your ATP certification.

The cost for the ATP course varies depending on whether you are an existing NATP member or not. For existing members, the cost is $349; for non-members, it is $399. Additionally, there may be additional fees associated with taking the exam or renewing your membership each year.

10. Certified Fraud Examiner (CFE)

Certified Fraud Examiner (CFE) is a professional certification awarded by the Association of Certified Fraud Examiners (ACFE). The CFE credential is designed to recognize individuals who have achieved a high level of expertise in the prevention, detection and investigation of fraud.

It typically takes around 6 months to complete the CFE program. To become a CFE, you must first meet certain eligibility requirements such as having a bachelor’s degree or higher, at least two years of anti-fraud experience, and passing an examination. After meeting these requirements, you must then complete four courses: Introduction to Fraud Examination; Financial Transaction Analysis; Law for the Fraud Examiner; and Report Writing & Case Presentation. Once all four courses are completed, you will be eligible to take the CFE Exam.

The cost for becoming a CFE varies depending on your country of residence and other factors. Generally speaking, it will cost around $1,000 USD to become a CFE. This includes the cost of course materials, exam fees and any additional fees associated with becoming certified.

Do You Really Need a Tax Auditor Certificate?

The answer to this question depends on your unique situation. There are certain circumstances in which a Tax Auditor Certificate may be required or recommended, such as when an individual is filing their taxes for the first time, if they have recently changed jobs or opened a business, or if they are involved in a dispute with the IRS.

In general, most people do not need to obtain a Tax Auditor Certificate. However, there are some situations in which it may be beneficial to have one. For example, having a Tax Auditor Certificate can help you understand and resolve any issues with the IRS more quickly. It can also provide assurance that your tax returns have been correctly prepared and filed correctly.

If you’re unsure whether or not you need a Tax Auditor Certificate, it is best to consult with an experienced tax professional who can assess your individual situation and advise you accordingly. They will be able to evaluate the potential benefits of obtaining such certification and advise you on how best to proceed.

Related: Tax Auditor Resume Examples

FAQs About Tax Auditor Certifications

Q1: What is a Tax Auditor Certification?

A1: A Tax Auditor Certification is a professional certificate that certifies an individual’s knowledge and skill in auditing tax returns and financial statements. It helps to ensure that a tax auditor has the necessary qualifications to accurately identify any potential issues with a taxpayer’s return or financial statement.

Q2: How do I become certified as a Tax Auditor?

A2: To become certified as a Tax Auditor, you must pass an exam administered by the American Institute of Certified Public Accountants (AICPA). The exam covers topics such as financial statement analysis, tax law and regulations, auditing standards, and ethical considerations.

Q3: What are the benefits of being a certified Tax Auditor?

A3: Being certified as a Tax Auditor allows an individual to provide high-quality services to their clients. It also demonstrates expertise in the field and can lead to higher pay rates and more job opportunities. Additionally, it gives employers assurance that they are hiring someone who is knowledgeable in the area of taxation.

Q4: How long does it take to complete the certification process?

A4: The certification process typically takes between six months and one year depending on how quickly you study for the exam. You will also need to meet continuing education requirements every two years in order to maintain your certification status.

Q5: Is there any way to prepare for the exam without taking classes?

A5: Yes! There are many online resources available that can help you prepare for the exam without enrolling in classes or attending seminars. You can find practice exams, study guides, and other materials online that can help you master the material necessary for passing the exam.