Trade guide
External auditor
An external auditor is a highly qualified professional in the field of finance. They are responsible for carrying out audits to help companies comply with regulatory requirements and improve their operations. Their main responsibility is to ensure that the financial statements accurately reflect a company’s financial position and operating results.
The business
What is an external auditor?
Its role
An external auditor is an independent third party who validates a company’s financial statements and accounting processes. External auditors are responsible for assessing an organisation’s risk management, control and audit functions to help it comply with standards and other relevant guidelines.
Its field of action
Accounting firms that specialise in auditing are known as external auditors. They audit accounting documents at the request of external companies. This means that an external auditor carries out audits on behalf of an organisation’s board of directors or shareholders, rather than directly for the company itself. These external auditors examine a company’s accounting practices and procedures to ensure that it complies with regulatory standards as well as its own internal policies and procedures. They are financial experts.
The functions
What are the tasks of an external auditor?
An external auditor plays an important role in any organisation. Their main responsibilities are to
provide an objective and independent opinion on the company’s financial statements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements;
Auditing is the regular assessment of internal controls and the proper functioning of a company or organisation. The task of an external auditor is to create a report that describes the processes, methods and products. The report must also include a risk analysis for the company;
The role of an external auditor is to provide an independent report to the company’s board. The company’s board of directors must accept the external auditor’s report and may take decisions based on the information contained therein. The external auditor will not be responsible for any actions taken as a result of the report.
The Board may also request that management actions be assessed by an external auditor. It may also commission an additional audit.
Qualifications
Qualities and skills needed to be a good external auditor
There are many qualities of a good external auditor. For a start, they must be able to facilitate and support the company’s progress. They must also be competent and have good communication skills. They must be able to interpret staff statements in context.
A good knowledge of laws, standards and regulations is essential. But they must also be able to evaluate management practices. They must therefore be able to make recommendations to the Board of Directors.
Auditors are expected to act independently of those who have engaged their services, so that their objectivity is not compromised by any personal or professional relationship with management. This often means that external auditors will only be engaged on an independent contractor asemployees of another firm, rather than as employees of the organisation being audited.
The benefits
What are the advantages of being an external auditor?
There are many benefits to being an auditor. It allows you to visit and explore new places and meet new people. It’s also an opportunity to work as part of a team with colleagues who have different experience and expertise to you.
An external auditor may work for several clients at the same time. In this case, the remuneration is significant.
Remuneration
External auditor: salary and career development
An external auditor’s salary depends on several factors. The first is the type of audit they perform. In general, auditors who do business audits are paid more than those who do financial audits, but experience and level are important when it comes to pay.
After three or four years’ experience, an external auditor can become a senior auditor and even a manager. The salary of an external auditor varies according to the sector of expertise. But in general, an external auditor earns between €2,600 and €4,000 a month.
Up to
4 000€
Monthly salary
Training courses
How do I become an external auditor?
Our training courses
Graduates in accounting, economics and management are the most likely to land a job as an external auditor. A 2nd cycle university degree is often required to gain access to the job. Sometimes, a postgraduate degree is required for certain companies. University studies in accounting, economics and management give students the tools they need to succeed in the external auditing profession. You can also study at a business school such as INSEEC:
Alternation
Would you like to become an external auditor? We offer a tailored sandwich course. You can alternate theoretical studies with practical experience.
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