Auditors are a valuable asset to any organization, as the accuracy of their work in preparing financial records and ensuring taxes are paid on time, keeping the company operating efficiently. The earnings for auditors vary greatly, with a low end of $40,000 a year and the top ten percent earning a yearly minimum of $110,000. The average salary for auditors is $62,850.
Auditors of Multiple Industries
Auditors are found in every type of industry. Many begin their careers as forensic or corporate accountants, then open their own offices to serve the public once they have become Certified Public Accountants. While their job descriptions may vary, such as an internal auditor, retail loss prevention, information technology or field auditor, their basic functions are the same.
The role of the auditor is to organize and maintain all the company’s financial records. They examine their clients’ financial statements for accuracy and compliance with all federal tax laws and regulations. They compute the taxes owed and prepare the filing of related paperwork. They inspect the accounting books for efficient business practices. They suggest ways to decrease the costs of the business and for maximizing profits.
The industries that pay the highest mean income salaries to auditors and accountants are a little surprising. Dry cleaning and laundry services are at the top of the list, with a mean average of $91,260 a year. The federal executive branch of the U.S. Government comes in second place, with an average just under $90,000 a year. Independent artists, writers, and performers also hire auditors to do their paperwork, paying an average of $82,290 a year.
Regional Differences in Salary
How well an auditor is paid can also be influenced regionally. The District of Colombia pays the highest average for auditors at $86,000 a year, with New York coming into second place with an $85,000 a year average and New Jersey in third, with an average of $81,250.
Auditing is a full time employment, with approximately one fifth of all auditors averaging more than forty hours a week. Overtime work is usually seasonal, with the longest number of hours employed at the end of the budget year or during tax season.
Most employers prefer to hire an auditor with several years of experience in accounting or a related field, as well as a Bachelor’s degree. An auditor should be familiar with a variety of the field’s concepts, practices and procedures. Auditors are relied upon for good judgment in planning and accomplishing the organization’s goals. Most auditors work under general supervision and report to a supervisor or manager.
Auditors serve an important function if government organizations, in businesses and private practices. As crucial members of the financial world, their services are expected to grown by sixteen percent within the next ten years. As many companies branch out into overseas practices, they are also met by the development of stricter laws requiring the necessity of hiring an auditor to keep their business practices in compliance with federal law. Tighter lending standards are also expected to spur growth in the fields of accounting and auditing, especially in the area of trade.
A number of states are expected to increase the demand for auditors faster than the sixteen percent average as these states develop their business potential. Utah’s employment rate for auditors is projected to grow by 35% within the next few years. Other areas expected to see a higher increase of 25 – 26 percent are Maryland, Texas, Virginia and Idaho. Although the employment rate is increasing rapidly, accounting and auditing is a highly competitive field. The best chance of landing a solid auditing job is to obtain a master’s degree.