Would you like to work as an auditor, do you know what they do in audits? In this article, we want to show you and guide you in what an audit job consists.
What is the audit?
Auditing is a highly demanded profession in Spanish territory and abroad. All companies (medium and large) must be audited by law, therefore they must have independent auditors to carry out this work.
Although there are numerous independent auditors, the most important, reputable, and best known are the so-called “Big Four” (PwC, KPMG, Deloitte and EY). We will focus on them to explain the Audit.
The most important business of the Big Four is its Audit departments, conducting annual audits of the main companies around the world. What characterizes the Big Four is that they can offer a comprehensive service to companies, this is because they have departments that provide legal, tax, consulting, IT, back office, audit, Due Diligence, etc. to companies of any sector and any country.
From a certain volume of sales, the Law obliges companies to carry out an audit of their accounts every year. The audit consists of verifying that the company’s accounts reflect a true and true image. To do this, they analyze each item of the annual accounts and issue a report showing the financial statements of the company and explain all the items they contain.
Therefore, an auditor will go to the client’s offices and, together with his financial team, will ask for explanations of all the items that make up his accounts. They will also analyze inventory samples, invoices, appraisals, etc. to confirm that what the company says is true.
The audit work is essential in a large number of fields: investors who want to know the company, shareholders of the company, Public Institutions that have to have information about the company, etc. Therefore, it is a job that demands great responsibility and must be carried out with great caution.
What career opportunities exist after 3/5 years?
Controller or CFO (depending on experience) of a client:
due to the great knowledge acquired of the company and its competitors, auditors are the best prepared to take charge of the business
- Other Big Four departments: it is common for an auditor to change departments and use the knowledge acquired to assess companies, do Due Diligence or in the Consulting department
There are also more exits for an auditor, it is not strange to see an auditor leap to an investment bank or a Private Equity due to the accounting knowledge they have acquired.
How do you get an auditor position?
Auditing requires large teams and that is why each year the Big Four tend to have many open positions for auditors. The bad news is that the number of candidates applying for these positions is also often high.
Typically, auditors look for financial profiles or engineers with high levels of English and accounting skills.
In general, they will value an analytical profile, with attention to detail and a great capacity for teamwork.
The interviews usually consist of a group dynamic in which an accounting and English test will be required.
How to prepare applications and interviews?
The technical interview varies according to the auditor. A common case will be one in which the candidate has to reconstruct a Profit and Loss account and a Balance from a Sums and Balances account. For students who have taken accounting classes, it shouldn’t be a big deal.
Interviews with Managers and Partners may include some accounting questions, but it is not usual for them to develop a very detailed case study as in the case of consulting.