Auditors examine and verify financial statements and records to ensure accuracy, compliance with regulations, and proper internal controls. The profession spans two primary categories—external and internal auditing—with distinct responsibilities, reporting structures, and career paths.
Core Responsibilities
Auditors analyze financial data, test accounting systems, and evaluate organizational processes. External auditors provide independent assessments of financial statements, typically for public companies, private entities, or government agencies. Internal auditors work within organizations to assess risk management, governance, and operational efficiency.
Daily tasks include:
- Reviewing journal entries, financial statements, and accounting records
- Testing internal controls and compliance procedures
- Conducting interviews with management and staff
- Analyzing transaction data for discrepancies or fraud indicators
- Documenting findings and preparing audit reports
- Communicating results to stakeholders
External vs. Internal Auditing
External Auditors
External auditors work independently from the organizations they audit. Public accounting firms employ the majority of external auditors, who examine financial statements to determine whether they represent a fair and accurate view of financial position.
External auditors answer to shareholders, regulatory bodies, or the public rather than company management. Statutory requirements drive most external audit work, with defined reporting formats and legal obligations. Companies appoint external auditors through shareholder approval.
Internal Auditors
Internal auditors function as employees of the organizations they audit. They report to senior management or the board and focus on risk identification, governance evaluation, and process improvement.
Internal audit objectives come from the organization’s Audit Charter rather than statutory requirements. Management directs internal auditors toward specific areas requiring examination—operational efficiency, data security, regulatory compliance, or fraud prevention. Internal audit reports remain confidential unless management releases them.
The profession provides two types of services: assurance (independent evaluations of controls and processes) and consulting (recommendations for improvement and risk mitigation).
Work Settings
Auditors work across multiple sectors:
Public Accounting Firms
Big Four firms (Deloitte, EY, KPMG, PwC) and regional firms employ external auditors to serve clients across industries. These positions typically involve travel and exposure to diverse businesses.
Corporations
Large organizations employ internal auditors to evaluate operations, assess controls, and provide advisory services to management.
Government Agencies
Federal, state, and local governments hire auditors to examine public programs, ensure regulatory compliance, and prevent fraud in government operations.
Specialized Industries
Finance, healthcare, technology, and manufacturing sectors maintain dedicated audit functions to address industry-specific risks and regulations.
Education and Certification
A bachelor’s degree in accounting represents the minimum educational requirement for entry-level audit positions. Business, finance, and related degrees also qualify candidates for auditing roles.
Certifications
Multiple certifications enhance audit careers:
Certified Public Accountant (CPA)
State boards license CPAs, who can perform external audits and attest to financial statements. CPA licensure requires 150 credit hours of education, passing a four-part exam, and meeting experience requirements that vary by state.
Certified Internal Auditor (CIA)
The Institute of Internal Auditors awards the CIA designation—the only globally recognized internal audit certification. Requirements include a bachelor’s degree (or five years of internal audit experience), passing a three-part exam, and meeting experience thresholds that range from one year with a master’s degree to five years with an associate degree.
Active CPAs can obtain CIA certification through an accelerated one-part Challenge Exam that covers only content not addressed in the CPA examination.
Additional Certifications
Certified Information Systems Auditor (CISA) for IT audit specialists, Certified Fraud Examiner (CFE) for forensic work, and Certification in Risk Management Assurance (CRMA) for risk-focused auditors.
Required Skills
Technical Competencies
Auditors work with GAAP, IFRS, and industry-specific accounting standards. Strong mathematics skills support calculations for depreciation, tax estimates, and financial ratios. Technology proficiency covers accounting software, data analytics platforms, and audit management systems.
Analytical Abilities
Pattern recognition identifies anomalies in financial data. Auditors extrapolate findings to assess broader organizational risks and forecast potential issues based on current data trends.
Communication
Written reports communicate findings to management, boards, and stakeholders. Verbal presentations explain complex financial issues in accessible terms. Interview skills gather information from employees across organizational levels.
Professional Judgment
Auditors maintain objectivity while evaluating evidence. Critical thinking separates relevant information from background noise and assesses the reliability of source documents and management representations.
Compensation
Auditor salaries vary by experience level, geographic location, and employer type.
National Salary Data (2025)
Multiple sources report different averages based on methodology:
- PayScale: $67,382 average
- Glassdoor: $84,293 average
- Salary.com: $87,466 average
- Talent.com: $69,029 average
By Experience Level
- Entry-level auditors (less than 1 year): $60,000-$68,000
- Early career (1-4 years): $64,000-$70,000
- Mid-career (5-8 years): $69,000-$75,000
- Experienced (8+ years): $70,000-$85,000
Certified Internal Auditors earn approximately $76,185 according to 2025 data, with a range of $59,500 to $90,000 for most positions.
Geographic Variations
Top-paying states include:
- California: $96,475
- Massachusetts: $95,190
- New Jersey: $86,100
- Maryland: $80,000
- New York: $77,748
Major metropolitan areas—Washington DC, New York, and Jersey City—offer the highest compensation due to cost of living and demand for skilled professionals.
Industry Differences
Energy, mining, and utilities pay the highest average at $140,980. Pharmaceutical and biotechnology sectors average $105,869. Financial services pay $84,046 on average.
Career Outlook
The Bureau of Labor Statistics projects 5% employment growth for auditors from 2024-2034, tracking with overall economic growth. Finance and accounting positions maintain steady demand tied to business expansion and regulatory requirements.
Technology continues reshaping audit work. Automation handles routine tasks like data extraction and transaction testing, allowing auditors to focus on analysis, interpretation, and advisory services. AI tools support risk assessment and anomaly detection but require human oversight for context and judgment.
Seasonal Workload
Auditor schedules follow the financial calendar. Peak periods occur during:
- Spring (tax season and year-end audits)
- Quarter-end close periods
- Fiscal year-end (varies by organization)
Firms with July fiscal year-ends experience different busy seasons than calendar-year organizations.
Professional Development
Continuing education maintains certification status. CIAs complete 40 CPE hours annually (20 for non-practicing status). CPA CPE requirements vary by state, typically ranging from 40-80 hours per year.
Professional organizations provide networking and educational resources:
- Institute of Internal Auditors (IIA)
- American Institute of CPAs (AICPA)
- American Accounting Association