Financial Auditor Responsibilities

Financial auditors play a key role in adding credibility and ensuring the transparency of all the financial transactions that may have occurred in the organization. This in turn helps in building a sense of confidence in the minds of the investors that will help in building and retaining a clear image for any business organization. This will further lead to more business opportunities, and guarantee more growth and profits for the organization. Thus, financial auditor responsibilities are of crucial importance and their effective handling helps in presenting a fair image of the organization in the corporate world.

Key Responsibilities of a Financial Auditor

Financial auditors ensure that the existing financial transactions are appropriately recorded, and he makes sure that they are complete and accurately entered. He verifies the information entered and ensures that it is properly classified and summarized. The financial details entered, that is, the account balances should exactly match with the master file and general ledger entries. The auditor must be able to obtain sufficient and relevant information that can be used as an evidence in support of the financial statements. To get a clear idea, let us study in detail the key responsibilities that need to be handled by a financial auditor:

1. To examine and conduct a thorough research of all the financial transactions, records, statements, and to verify the accuracy of the bank statements, ledger entries, expenditures, tax returns, etc.
2. To ensure compliance with the organization's rules and policies as well as with the accounting standards
3. To study in depth the financial records, derive accurate audit findings, and present it in the form of reports
4. To identify the discrepancies, resolve it, and make subsequent recommendations to improve the accounting practices
5. May need to lead a team of auditors, supervise them, and delegate the audit functions to them
6. To be responsible for finding out solutions to reduce the costs of the company, increase the profits, and help in earning more revenues for the organization

Thus, they play a key role in determining if there are any discrepancies in the financial records or help in identifying if any fraud has occurred. A negative audit report may affect the financial status of the organization. Thus, it is essential to ensure the transparency of the financial records and statements that will help in reflecting better image and good financial health of the organization. In short, they are responsible for gathering the relevant financial information, researching and analyzing it, checking for its accuracy, identifying the discrepancies, and reporting the findings to the management that will assist in giving the correct financial status of the organization.

Essential Skills

To excel as a financial auditor, one needs to have excellent analytical skills and should be able to interpret the information accurately. He should be good at maths that will enable him to make fast and accurate computations. Strong proficiency in computers is a must, as he will need to make reports. He should have a keen eye for details and should be able to identify the discrepancies in the financial transactions. He must be extremely well organized with excellent time management skills.

Educational Background

To qualify as a financial auditor, you should possess at least a bachelor's degree in auditing, finance, accounting, or any other relevant field. A certified public accountant or those with additional certification will definitely have more chances of getting the job. Additional experience or internship would prove to be of great advantage.

Work Hours

The financial auditors work in a normal office environment and generally are employed full time with their weekly routine adding up to forty hours per week. Some may be self employed and can even work from home. They may need to work extra during the peak tax season or during the closing year for the finance department.

Salary Details

The average salary earned by a financial auditor is $61,000 to $63,000. Depending on the experience, academic qualifications, and skills, the minimum salary for entry level candidates is close to $39,000, while the experienced candidates can get salary in the range of $101,000 to $107,000.

Career Prospects

Due to the ever changing economic conditions and increasing number of fraudulent cases, there is a huge demand and scope for the financial auditor. The employment rate is expected to grow by fifteen percent in the coming years. Business organizations have realized the importance of audits which reflect a sense of confidence and credibility leading to more revenues. Those with higher qualifications and experience will definitely have more lucrative career opportunities.

Thus, to become a complete professional, it is essential that you shoulder the financial auditor responsibilities effectively.