Have you considered how a well-defined auditor job description can significantly impact your hiring process? Hiring an auditor is crucial for businesses and organizations looking to ensure financial accuracy, regulatory compliance, and transparency.
With financial irregularities and compliance issues rising and 59% of financial compliance professionals braced for increased financial crime, a proficient auditor can be your organization’s guardian of financial integrity.
In this comprehensive guide, we will walk you through the process of hiring an auditor, from understanding their responsibilities and job description to practical tips for making the right choice.
Responsibilities & Role of an Auditor
Auditors play a role in ensuring an organization’s financial health and compliance. Comprehending the responsibilities of an auditor and how they can benefit your organization is important.
Let us look at some responsibilities:
- Financial Auditing: Your prospective auditor will review financial records, transactions, and reports to assess their accuracy and compliance with relevant laws and regulations.
- Risk Assessment: The person you hire for this role will evaluate potential financial risks that could affect your organization, such as fraud, mismanagement, or non-compliance, and develop strategies to mitigate these risks.
- Internal Controls and Compliance: The auditor will examine and enhance internal controls and processes to ensure efficiency and minimize the risk of financial errors or irregularities. They will ensure your organization adheres to industry-specific regulations, accounting standards, and legal requirements.
- Recommendations: Their forte will be providing actionable recommendations for improving financial processes, reducing risks, and enhancing financial performance.
How to Hire an Auditor
Now, let’s delve into the steps you should follow to hire the perfect auditor for your organization’s needs:
1. Identify Your Auditing Needs
Before initiating the hiring process, assess your organization’s auditing needs.
Consider factors like:
- The scope of the audit (financial, operational, compliance, etc.).
- Regulatory requirements specific to your industry.
- The size and complexity of your organization.
- Any recent audit issues or concerns.
This self-assessment will help you communicate your requirements clearly to potential auditors.
2. Search for Top Talent
Once you’ve defined your needs, it’s time to find potential candidates.
Here are some avenues to explore:
- Auditing Directories: Websites and directories like Accountfully, Drata, Colson Strategies, AICPA and CIMA can help you identify certified registered advisors.
- Professional Associations: Organizations like the American Institute of Certified Public Accountants (AICPA), the Institute of Internal Auditors (IIA), the Institute of Management Accountants, the International Federation of Accountants, and industry-specific associations can help you identify qualified auditors.
- Referrals: Seek recommendations from colleagues, industry peers, or your professional network who have had positive experiences with auditors.
- Online Platforms: Websites like LinkedIn and job search platforms like Indeed or Glassdoor, Toptal, Careers in Audit, and Guru can connect you with auditors specializing in your specific industry and auditing type.
3. Look for Professional Qualifications
As you review the resumes of potential candidates, ensure that auditors hold the necessary qualifications and certifications.
Look for educational qualifications and certifications such as:
- Bachelor’s degree in accounting, finance, mathematics or statistics.
- Master’s degree in business administration, finance, or a related field
- Certified Public Accountant (CPA): CPAs are often involved in tax planning and financial reporting. This certification is valuable for auditors who work on tax-related matters.
- Certified Internal Auditor (CIA): The Certified Internal Auditor (CIA) designation is a globally recognized certification awarded by the Institute of Internal Auditors (IIA). It is designed for professionals who specialize in internal auditing and want to demonstrate their expertise in the field.
- Certified Information Systems Auditor (CISA): The Certified Information Systems Auditor (CISA) certification is awarded by ISACA (Information Systems Audit and Control Association) and is specifically tailored for professionals involved in information systems auditing, control, and security.
4. Analyze Their Work Experience
Review the auditors’ work experience, particularly their track record in conducting audits in your industry or similar organizations. This will help you assess their qualifications, suitability, and competence for the specific auditing role you want.
Determine whether the auditor has experience in your specific industry or a closely related one. Industry-specific knowledge can be invaluable, allowing the auditor to better understand the nuances, risks, and regulations unique to your sector.
Examine the auditor’s specialization within the audit field. Auditors often specialize in areas such as financial audits, operational audits, compliance audits, or information systems audits. Ensure their specialization aligns with your organization’s needs.
Skills to look out for:
- Analytical Thinking
- Attention to Detail
- Time Management
- Ethical Judgment
Prioritize candidates with experience in audit methodologies, regulatory compliance, and industry-specific knowledge like TeamMate, ACL, GRC, AuditBoard, Tableau, QuickBooks, Xero, SAP, Microsoft Power BI, and IDEA.
List candidates with the experience, qualifications, certifications, and technical expertise you desire.
5. Conduct Interviews
Once you’ve identified potential auditors, conduct interviews to assess their compatibility with your organization’s auditing needs. Use these interview questions as a template and tailor yours to match your specific job roles.
During the interview, ask questions to gauge their:
- Audit methodology and approach.
- Familiarity with your industry’s specific challenges and regulations.
- Communication skills and ability to work with your team.
- Problem-solving and analytical skills.
- Experience with audit software and technology.
Ensure that your interview questions and decisions comply with applicable laws to avoid discrimination based on factors like age, race, gender, religion, or disability.
Ask about their personal values, how they work, and their ability to collaborate with teams to see if it matches your organization. Request work samples to assess if they are an ideal fit.
6. Check References and Regulatory Records
Ask for references from previous clients to gain insight into the auditor’s professionalism, communication style, and overall performance.
Consider asking questions about their ability to identify and address audit issues, maintain compliance, and work effectively with your team.
Ask these specific questions:
- How would you describe the candidate’s work performance?
- Was the candidate effective in identifying and addressing audit issues or deficiencies?
- How did the candidate handle challenging audit situations or complex projects?
- Were there any areas where the candidate needed improvement or further development as an auditor?
Check regulatory websites for any disciplinary actions or complaints against the auditor.
Auditor Job Description
A well-crafted auditor job description is essential to attract the right candidates.
Here’s a template that highlights the role’s importance and benefits:
Job Title: Auditor
Company: [Your Organization Name]
Job Type: [Full Time / Part Time / Contract]
Salary: [Competitive Salary / Hourly Rate / DOE]
[Provide a brief overview of your organization’s mission, values, and industry.]
As an Auditor at [Your Organization Name], you will play a critical role in ensuring our organization’s financial integrity and compliance. Here’s what you can expect:
- Diverse and Challenging Audits: Work on various audits, including financial, operational, and compliance, providing valuable insights to enhance our processes.
- Professional Growth: Access ongoing training and development opportunities to stay at the forefront of auditing best practices.
- Cutting-Edge Tools: Utilize advanced methodologies and technology to streamline audit processes and deliver exceptional results.
What You’ll Do:
- Develop comprehensive audit plans, including risk assessments, audit objectives, and audit scope.
- Gather and analyze financial or IT data, documents, and records.
- Conduct on-site or remote audit fieldwork.
- Identify potential risks and control weaknesses within financial processes, internal controls, or information systems.
- Execute audit tests, such as substantive testing, analytical procedures, and compliance testing.
- Maintain organized and detailed audit documentation, including workpapers, findings, and recommendations.
- Prepare clear and concise audit reports communicating audit findings, control deficiencies, and recommendations.
- Ensure the organization adheres to industry-specific regulations, accounting standards, and internal policies.
- Provide actionable recommendations to enhance internal controls, minimize risks, and improve operational efficiency.
- Adhere to audit methodologies and quality assurance standards.
- Maintain open and effective communication with clients, stakeholders, and audit teams throughout the audit process.
- Stay up-to-date with auditing standards, industry regulations, and emerging trends in auditing and technology.
- Monitor the implementation of audit recommendations.
What You’ll Bring:
To excel in this role, you should possess:
- A Bachelor’s or Master’s degree in accounting, finance, or a related field.
- Professional certifications such as Certified Public Accountant (CPA), Certified Internal Auditor (CIA), or Certified Information Systems Auditor (CISA).
- [Specify Years] years of experience in auditing, with a proven track record of delivering high-quality audit results.
- Strong analytical skills and proficiency in audit software and tools.
- Excellent communication and interpersonal skills to work effectively with cross-functional teams.
- Proficiency in audit methodologies and best practices.
- Familiarity with audit software and tools used for data analysis and reporting.
- Ability to work effectively within a team, collaborate on audits, and share insights.
- Capability to identify issues, propose solutions, and address complex audit challenges.
- Keen attention to detail for identifying discrepancies and ensuring audit accuracy.
- Adherence to high ethical standards, integrity, and objectivity in auditing processes.
- Proficiency in information technology concepts and systems for IT auditing roles.
- Understanding of specific industry regulations and compliance requirements.
- Knowledge of audit-related regulations and compliance standards.
- Ability to create comprehensive audit reports with findings and recommendations.
- Effective time management and organization skills to handle multiple audits simultaneously.
- Flexibility to adapt to changing audit environments and evolving audit requirements.
- Client-centric mindset for building relationships, understanding client needs, and delivering value through audits.
Benefits and Perks:
- Competitive salary or hourly rate.
- Health insurance benefits.
- Retirement plans (e.g., 401(k)).
- Paid time off (PTO).
- Professional development opportunities.
- Performance-based bonuses.
- Flexible work arrangements.
- Wellness programs.
- Gym memberships.
- Employee discounts.
- Team-building events.
- Employee recognition programs.
- Rewarding work environment.
- Continuing education.
- Professional growth.
- Travel opportunities.
- Stock options or equity.
- Company-provided technology and tools.
- Commuter benefits (e.g., transportation subsidies).
- On-site amenities (e.g., cafeteria, fitness center).
How to Apply:
If you’re ready to make a meaningful impact on our organization’s financial integrity and grow in your auditing career, please send your resume, a cover letter detailing your qualifications, and any other supporting documents to [email address] with the subject line “Application for Auditor Position – [Your Name].”
[Your Organization Name] values diversity and is an equal-opportunity employer. Discrimination based on race, color, religion, gender, sexual orientation, gender identity, national origin, or protected veteran status will not be tolerated.
Closing Date: [Insert closing date for applications]
Kindly note that we will only reach out to candidates who have been shortlisted for further consideration. We appreciate your keen interest in [Your Organization Name].
Note: Please note that this is a template, and you are advised to adjust it to meet your organization’s specific requirements and the particular auditing role you are looking to fill.
How Much Does it Cost to Hire an Auditor?
Hiring an auditor comes with associated expenses that are important to consider in your budgeting. Understanding these costs will help you make informed decisions and find the best auditor for your organization’s needs.
Here are some potential hiring expenses:
This includes expenses related to advertising the job opening, utilizing recruitment agencies, and conducting background checks or pre-employment assessments. Costs may vary depending on the recruitment channels chosen and the complexity of the hiring process.
- Accountfully: All finance and advisory services are billed at $225 per hour.
- Drata: Drata Pro costs $20 per user per month, while the Drata Enterprise costs $30 per user per month.
- AICPA and CIMA: There are various plans on this association’s job board – the Simple plan is $545 for the 30-day listing and $985 for the 60-day listing; the Ambitious plan costs $655 for the 30-day listing and $1,095 for the 60-day listing, and the Challenging plan costs $765 for the 30-day listing and $1,205 for the 60-day listing
- Institute of Internal Auditors (IIA): Reach thousands of prospective candidates at $399 for members and $529 for non-members via the job flash package. The premium job flash package costs $499 and $699 for members and non-members, respectively. The ultimate recruitment package costs $699 and $899 for members and non-members. You can also try the 30-day job posting package at $299 for members and $399 for non-members.
- Institute of Management Accountants: Post your job listing at $399 for members and $549 for non-members via the job flash package. The premium job flash package costs $549 and $699 for members and non-members, respectively. The ultimate recruitment package costs $749 and $899 for members and non-members. You can also try the 30-day job posting package at $299 for members and $399 for non-members.
Membership in professional auditing associations, such as the Institute of Internal Auditors (IIA) or the American Institute of Certified Public Accountants (AICPA), may have associated membership fees.
Auditor’s Fees or Salary
The primary cost when hiring an auditor is their fees. Auditors typically charge clients in several ways, but the average salary range for an auditor is between $48,000 and $78,000, according to Glassdoor. According to Indeed, auditors earn hourly from $11.60 to $44.75 and an average of $83,830 annually.
Technology and Software Costs
Some auditors use specialized audit software and technology to streamline their audit processes. These costs may be passed on to clients as part of the audit fees.
- For individual users, the Tableau Creator offering includes various services at $75 per month, while for teams and organizations, Tableau Explorer costs $42 per month, and Tableau Viewer costs $15 per month.
- Power BI in Microsoft Fabric free account is free, Power BI Pro costs $10 per user per month, Power BI Premium costs $20 per user/month, Power BI Premium per capacity (includes Microsoft Fabric) costs $4,995 per capacity/month, and Power BI Premium per capacity (includes Microsoft Fabric) costs $262.80 per capacity/month.
- Quicken also has different plans – Premier, Home & Business, Simplifi, and Deluxe. You can pay from as low as $3.99 to as high as $9.99.
- Xero has 3 different plans – Early, Growing, and Established. They range from $11 to $62.
Training and Certification Costs
Auditors who hold advanced certifications or require ongoing training may pass on the costs of obtaining and maintaining these certifications to clients. So, be open to paying the costs of getting relevant certifications like Certified Public Accountant (CPA), Certified Internal Auditor (CIA), or Certified Information Systems Auditor (CISA).