What does an External Auditor do?
Published 3 min read
An external auditor is an independent professional who examines an organization's financial statements and other financial information to determine if they are accurate and in compliance with applicable laws and regulations. The external auditor also provides an opinion on the organization's overall financial health.
External Auditor job duties include:
- Planning and performing audits
- Evaluating internal controls
- Documenting and testing audit procedures
- Identifying risk areas
- Analyzing financial statements
- Communicating audit findings
- Preparing audit reports
- Supervising staff
- Managing projects
External Auditor Job Requirements
Most external auditors have a bachelor's degree in accounting, although some have a master's degree in business administration with a concentration in accounting. Many external auditors also are certified public accountants (CPAs). Some firms require their external auditors to have a CPA license; others do not. However, CPAs generally have an advantage in obtaining jobs with accounting firms. In addition to passing the CPA exam, CPAs must meet continuing education requirements and adhere to a code of professional ethics. External auditors also must have good communication, analytical, and research skills.
External Auditor Skills
- Analytical skills
- Proactive
- Auditing
- Flexible
- Communication skills
- Organizational skills
- Problem-solving skills
- Detail oriented
- Interpersonal skills
- Time management
- Research skills
Related: Top External Auditor Skills: Definition and Examples
How to become an External Auditor
External auditors are in high demand due to the current Sarbanes-Oxley compliance environment. Many organizations are looking for qualified individuals to help them ensure their financial statements are accurate and free from fraud. If you’re interested in becoming an external auditor, there are a few things you need to do.
First, you need to earn a bachelor’s degree in accounting or a related field. This will give you the basic foundation you need to understand financial statements and auditing procedures. You should also consider getting certified as a Certified Public Accountant (CPA). This designation will make you more attractive to potential employers.
Once you have your education and experience, you’ll need to find a job with an accounting firm that offers auditing services. Start by applying for entry-level positions such as audit associate or staff accountant. Once you have a few years of experience under your belt, you can apply for senior-level positions such as audit manager or partner.
As an external auditor, your job will be to review an organization’s financial statements and ensure they are accurate and free from fraud. You’ll also develop audit plans, supervise junior staff, and report your findings to clients. To be successful in this role, you need to have strong analytical and communication skills. You must also be able to work independently and meet deadlines.
Related: External Auditor Resume Example
Related: External Auditor Interview Questions (With Example Answers)