What Does an Auditor Do?

Introduction

When investors buy a company's stock, they trust that its financial statements are accurate. Auditors are the professionals who check those numbers and make sure companies are telling the truth.

What Auditors Do

External auditors work for accounting firms and review companies' financial statements to confirm they are accurate and follow accounting rules. They test transactions, examine records, and evaluate internal controls. At the end, they issue an audit opinion. Internal auditors work inside companies, checking processes and helping prevent fraud and errors.

Why Audits Matter

Public companies in the United States must have their financial statements audited every year. Audits protect investors, lenders, and employees. Major accounting scandals, like Enron in 2001, showed what can happen when audits fail. These scandals led to stronger laws, like the Sarbanes-Oxley Act, which increased oversight of auditors.

Building a Career

Most auditors have degrees in accounting and many become Certified Public Accountants. The Big Four accounting firms, Deloitte, PwC, EY, and KPMG, hire thousands of new auditors each year. Audit experience opens doors to many careers, including controller, CFO, and forensic accounting.

Conclusion

Auditors are the guardians of trust in the business world. If you like accuracy, investigation, and accounting, this could be a strong foundation for your career!