Auditors can carry out either internal audits or external statutory audits. External audits are independent assessments of a company's financial position, and are required by law. External auditors do a series of tests on a company's financial records to show a 'true and fair view' of the profit and loss for that year.

Their duties include:

• examining company accounts
• collecting and interpreting data
• assessing the financial risks to a business
• assessing the company's financial control systems
• establishing productive working relationships with clients
• discussing the findings and any recommendations for improvement with the client.

In the public sector, central and local government departments are also audited to check how public money is being spent and to see if any savings can be made.

Internal audits are in-house reviews of a company's performance, profitability, stock control or costs. They are carried out in-house by the organisation's own employees. Internal audits can be done for various reasons, for example during wage reviews, or as part of a regular cycle to check that policies and procedures are being followed correctly.

Hours and Environment

Auditors normally work 35 to 40 hours per week, Monday to Friday. However, to meet deadlines they sometimes have to work longer hours including evenings and weekends. Some travelling is involved in this job and auditors may have to spend nights away from home. It may be possible to work part-time.

The work could be carried out either on the auditor’s or the client's premises. The work is mainly office-based, but sometimes auditors may have to check a company's stock or equipment and so might have to visit other workplaces such as warehouses, factories and building sites.

Skills and Interests

To be an auditor you should:

• be able to interpret data and evidence
• have good IT skills
• have good spoken and written communication skills
• enjoy solving problems
• be able to manage a busy workload under pressure
• pay great attention to detail
• be comfortable working both as part of a team and supervising others
• have a good understanding of business
• be discreet and honest as some information may be sensitive.

Entry

To carry out a statutory audit of a company, you must be a qualified chartered accountant and a member of one of the following professional bodies:

• the Association of Chartered Certified Accountants (ACCA)
• the Institute of Chartered Accountants in England & Wales (ICAEW), Institute of Chartered Accountants of Scotland (ICAS) or Institute of Chartered Accountants in Ireland (ICAI), or
• the Association of International Accountants (AIA).

In the public sector, audits can also be done by members of the Chartered Institute of Public Finance and Accountancy (CIPFA).

To begin training as an accountant with any of the above organisations, you will need:

• at least three GCSEs (A-C)/S grades (1-3) including English and maths, plus
• two A levels/three Highers, or equivalent qualifications acceptable for entry to a degree.

Contact the professional bodies to find out about acceptable equivalent qualifications.

In practice, many trainee accountants are graduates, with a good degree in any subject. Mature entrant schemes may also be available if you have relevant work experience but do not have the standard academic entry requirements. See Accountant: Private Practice or Accountant: Public Sector profiles for more information.

Internal financial audits may be done by members of any of the above professional bodies, by members of the Chartered Institute of Management Accounting (CIMA), or by part-qualified trainee accountants. (CIMA-qualified accountants cannot conduct statutory external audits – see Accountant: Industry and Commerce).

See professional body websites for details of employers offering graduate training schemes.

Some employers refer to CCAB qualifications in their entry requirements. The CCAB is the Consultative Committee of Accountancy Bodies, an advisory organisation made up six of the main professional accountancy bodies: ACCA, ICAEW, ICAS, ICAI, CIMA (internal audit only) and CIPFA. There is no single CCAB qualification - employers in this case will accept an accountancy qualification from any of these professional bodies. For more information on CCAB, see contacts below.

Training

To train as an accountant, you must register with one of the professional accountancy bodies and pass a series of examinations. For full membership of the professional body, you must also complete three years’ supervised work experience while studying or after passing the exams. See websites for full details about qualifying with each organisation.

To be an authorised auditor, you must:

• have been a qualified chartered accountant for at least two years, and
• hold a practising certificate and audit qualification from your professional body.

To achieve the practising certificate you must submit a record of your professional experience since qualifying. To also gain the audit qualification, at least one third of your post-qualifying experience must come from an auditing role. If you are a member of ACCA, you must have taken the Audit and Assurance exam option from Part 3 of your training, and later must pass an Audit Orientation Course and Test before being awarded the Audit Qualification. If you qualified with ICAEW, ICAS, ICAI or AIA, you do not need to pass a further audit test, but will achieve your audit qualification just by assessment of your professional training record.

CIPFA offers the Diploma in Public Audit (DPA), an intermediate qualification that covers internal and external auditing in the public sector. The DPA takes eighteen months and you can study by day-release at CIPFA regional training centres. You will need two A levels/Highers plus three GCSEs (A-C)/S grades (1-3), or at least two years’ experience of public sector finance work. The DPA can be a stand-alone qualification, or you could include it as part of your training if you later chose to progress to the full CIPFA Professional Accountancy Qualification (see Accountant: Public Sector).

Opportunities

External auditors can work for:

• firms of chartered or certified accountants
• the National Audit Office (which audits central government departments)
• the Audit Commission (or Accounts Commission in Scotland) which audits local authorities, the NHS and other public bodies.

Internal auditors work for commercial companies or public sector organisations, or may be self-employed. There are opportunities to specialise in areas such as taxation or insolvency, or to work overseas with large international accountancy firms and with private companies.

Annual Income

Figures are intended as a guideline only.

A graduate starting accountancy training would earn between £16,000 and £23,000 a year.
A recently qualified auditor would earn between £25,000 and £35,000.
A senior audit manager or audit partner could earn between £50,000 and £120,000.

Starting salaries for trainees vary depending on the size of the firm and the qualifications of the trainee. Salaries can be 10-20% higher in London than in the rest of the country.

Further information

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