11-08-2024
Are you ready to be at the forefront of financial integrity and corporate accountability? As businesses navigate increasingly complex regulations and evolving technologies, auditors play a critical role in ensuring transparency and compliance.
With over 130,800 projected job openings for auditors in the next decade, there's never been a better time to consider a career that combines financial expertise, investigative acumen and opportunities for professional growth.
Whether you're drawn to internal processes or external analysis, auditing offers a dynamic career path with the potential for leadership and specialization — all while enhancing your skill set with a CPA license.
So, should you become an auditor? Let’s explore if this high-demand, high-reward field is the right fit for you.
While accountants focus on managing and reporting finances, auditors take it one step further and look at accuracy. Trusted to examine financial records and systems, auditors ensure compliance with legal standards and Generally Accepted Accounting Principles (GAAP).
There are four common types of auditors — internal, external, compliance and forensic. Here we will focus on the first two types.
What is the difference between internal and external auditors? Their job roles and responsibilities vary.
The job duties of an internal auditor require attention to detail, integrity, analytical thinking, dependability and cooperation to complete an internal audit, which often focuses on improving the internal controls within an organization. According to Indeed.com, an internal audit job role includes:
External auditors are employed by independent accounting firms to conduct audits for external stakeholders. These roles highlight the difference between auditing vs. accounting, where auditors take on a more investigative approach compared to corporate accounting. According to Accounting.com, the job duties of an external auditor include:
Internal auditors commonly specialize in areas like information technology, compliance and operational auditing. The field offers growth and career flexibility. Auditors move into related fields such as risk management or consulting. Professionals who are more inclined to a scope of work that is focused on internal controls and operations of an organization can thrive with the support of this specialization. Internal audit is also the perfect choice for professionals who gravitate toward considering a long-term view and are actively seeking opportunities to apply that with process improvement.
On the other hand, external auditors typically specialize in industries like financial services, healthcare and manufacturing. Many external auditors delve further into the field becoming forensic auditors. A forensic audit uncovers fraud and financial discrepancies. A specialization in external auditing allows individuals who enjoy going beyond company operations and examining financial statements comprehensively to thrive. This field also creates avenues for professionals to bring their birds-eye analysis skills and ability to think on their feet to make sound decisions.
While internal and external auditors differ in focus, both career paths offer growth opportunities. External auditors often set up individual practices or transition into senior finance roles within existing organizations, while internal auditors focus on moving up within an organization to eventually become Chief Financial Officers (CFOs) or Chief Risk Officers (CROs).
The choice between internal and external auditing depends on what best fits one’s skillset. Regardless, both accounting career paths and salaries improve with accounting certifications, particularly the Certified Public Accountant (CPA) license. The Bureau of Labor Statistics (BLS) explains that professionals with CPAs earn about 10-15% more annually than professionals without.
An auditor's median income can vary significantly depending on their level of education. For those with a master's degree, the median annual income is above $90K, according to Indeed.com. In contrast, auditors with a bachelor's degree have a median annual income of about $79,880 annually, according to the BLS. The economic boost that holding a master’s degree provides establishes the value of higher education in a growing field like audit. Not only are earnings higher, but the pace at which professionals with a master’s degree reach a higher pay is also accelerated.
For external auditors, a certified public accountant (CPA) license is essential to advance beyond junior roles, particularly in signing off on audit reports or releasing statements on a company's finances. Big Four companies — Deloitte, PwC, EY, and KPMG — all strongly encourage auditors to earn their CPA certification and become licensed early in their careers to accelerate their professional growth.
For internal auditors, while being a CPA may not be required, it is beneficial, particularly for those aiming to move into financial reporting roles or considering a shift into external auditing later in their careers. The accounting certification, just part of the CPA license, ensures that internal auditors are capable and prepared to manage the evolving trends in auditing, like data analytics and cybersecurity reviews.
As part of earning your CPA license, you’ll need 150 credit hours. Since a bachelor’s degree typically requires 120 credit hours. A convenient and beneficial way to earn the remaining 30 hours is through a graduate program in accounting.
With an 88% first-time pass rate, Daniels School of Business Master of Accounting (MSA) grads are well-prepared for the CPA exam. The program also enhances their analytical skills, improving their written and oral communication, and developing their critical thinking and leadership abilities. In addition, the program specifically prepares students for the exam.
As the audit process becomes increasingly data-driven, with a greater emphasis on blockchain technology, AI and machine learning, this 30-credit hour program focuses on enhancing technical skills alongside CPA preparation to instill the skills that accounting employers seek today.
Whichever accounting path you pursue, internal or external auditing, the flexibility of the MSA program allows you to choose your area of focus and learn alongside your professional goals.
Learn more about the accounting industry.
Explore the MS Accounting program.
If you would like to receive more information about pursuing a business master’s at the Mitch Daniels School of Business, please fill out the form and a program specialist will be in touch!
