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What does an auditor do?

Oct 09, 2025 · 8 min read · AICPA & CIMA Insights Blog

Sara Lord didn’t know what she wanted her college major to be. But then a high school bookkeeping course sparked her interest in business. That led her to accounting and, eventually, to auditing.

“When I looked at careers, what I found is that accountants and auditors could do anything in the world of businesses, and that’s what really drew me into accounting,” said Lord, CPA. Based in the Minneapolis area, she is chief auditor at RSM US LLP. While attending the University of North Dakota as an accounting major, an internship opened her eyes to the variety that auditing work can entail.

“I had no idea what auditing was, but once I really tried it, it’s so different every day and that’s the part that was really exciting to me,” Lord explained. “It’s never boring. You’re never doing the same thing over and over.”

Auditors are like accounting detectives. They check a company’s records, policies, and practices to make sure everything adds up and follows the rules. These audits are essential for businesses and the public alike.

If you’re exploring career options, considering a degree in accounting, or looking for new opportunities in finance, read on for definitions, comparisons, insights, and resources to help you understand what auditing is, what auditors do, and how an auditing career can grow and evolve.

“Every day is different … you’re going out and you’re looking at your client’s books and records, internal controls, and they’re never the same,” explained Lord. “Even if you work on the same company year over year, they’re going to do different financial transactions. They’re going to have different people. They’re going to implement new software.”

What is auditing?

Ever wonder who checks whether companies are telling the truth about their finances? Enter the auditor.

“So, the company goes to an auditor, and the auditor goes in and gets evidence that the financial statements are free from material misstatement,” said Ahava Goldman, associate director — Audit & Attest Standards, at the AICPA. “That doesn’t mean they guarantee it’s right. But [the auditor] says it’s right enough that it won’t make a difference in your decision about whether to lend them money.”

The purpose of an audit is to provide an independent check on the accuracy of an organization’s financial records and of its operational policies, procedures, and practices — known as internal controls. Auditors help keep companies honest, legal, and running smoothly.

But audits aren’t just for finances. A company might need to report its greenhouse gas emissions to comply with state law; a practitioner would check those numbers. (For nonfinancial statements, the professional is called a practitioner, not an auditor.) Audits could also include data and cybersecurity practices, human resources, or how well a company uses a resource.

Government agencies can perform audits, too, and these happen at local-, state-, and federal-level agencies. Many cities and states have their own auditors, and different government agencies, like the Department of Labor or the IRS, employ auditors to conduct various financial and performance audits.

“We’re making sure you’re getting accurate information on which to base your judgements,” said Goldman.

“I’ve worked with companies that manage movie stars. I’ve worked with companies that were banks and companies that made carpet glue. I’ve worked with companies that are employee pension funds that invest in real estate, and I’ve worked on real estate investments,” said Jeremy Dillard, CPA, CGMA, and technical standards partner at the Los Angeles headquarters of SingerLewak. “You see all these different aspects of the economy that you get exposed to and learn a little bit about as you perform these engagements.”

There are many kinds of audits. Let’s break them down …

Financial audits

Auditors analyze different financial statements and records of a company to check for accuracy. They follow criteria like generally accepted accounting principles and create reports that are used by investors, community members, and other stakeholders.

Internal audits

An internal audit helps a company improve from the inside. The auditor evaluates risks, tests controls, and provides assurance that these policies and procedures are working as intended.

External audits

External auditors perform much the same job functions as internal auditors, but they are not employees of the company they’re auditing. External auditors examine financial statements and internal controls both to look for instances of fraud and to make sure laws are followed.

Operational audits

Operational audits are a specific type of internal audit that focuses only on an organization’s own policies and procedures — think human resources or management practices. The goal isn’t to simply identify errors but to also identify bottlenecks and redundancies that, when targeted and corrected, can improve overall production and operations.

Compliance audits

Like operational audits, compliance audits have a narrower area of focus than internal audits. A compliance audit might examine a company’s data privacy or cybersecurity practices, for example, and confirm whether an organization is staying on the right side of the law.

Forensic audits

Forensic audits are a highly specialized type of financial audit. The auditor dives deep into the money to potentially uncover financial wrongdoing or fraud, gather evidence for legal proceedings, and prevent future misconduct. Forensic auditors can have active roles in court proceedings — they might even be called on to testify before a judge and jury.

How to become an auditor

To become an auditor, you need a bachelor’s degree in accounting or a related field.

You don’t have to become a certified public accountant (CPA), which means earning a CPA license from your state’s professional society. That said, having CPA licensure could accelerate your career goals.

Goldman pointed out that no one else in America can issue assurance reports — only auditors can do that. “But,” he noted, “you can’t sign those reports without your CPA license.”

The CPA license is issued by the state’s Board of Accountancy and indicates your deep knowledge of accounting principles, ethics, tax laws, auditing procedures, and financial management. Here’s an explanation of the CPA and why licensure is the gold standard.

The license helps unlock career potential. Leadership and upper-management positions like partner or engagement partner (the person who signs and issues the reports) aren’t attainable without that CPA license. To become a CPA, you must meet specific education and experience requirements and pass the Uniform CPA Examination® (CPA Exam), which includes Core and specialized sections.

The CPA license is a big achievement, and your road map to the CPA Exam and becoming a CPA will kickstart your career journey. “People know the skill set auditors usually have. They know the rigor that it takes to pass the CPA Exam, and therefore, people like to hire CPAs, even if it’s for jobs that don’t require a license,” said Goldman.

Auditors have a wide range of skill sets.

They need analytical thinking, keen communication, an understanding of ethics, data fluency, and objectivity. What sets auditors apart from other accounting roles is that they also need to exercise professional skepticism. “If you’re the type of person that somebody says something and you think, ‘That doesn’t sound quite right,’ and you pay attention to your gut, then you have the trait to be a good auditor,” said Goldman.

What to expect in an auditing role

When Dillard started his career in public accounting, he rotated between performing audits and filing tax returns, but auditing felt like a better long-term fit.

“At the time, and it still holds, I love to travel,” explained Dillard. “If you were in tax, you were going to spend most of your time at the office. I would go crazy if I was in the same cubicle every day.”

Regardless of the career track, the core responsibilities of an auditor remain much the same:

  • Reviewing financial statements and transactions for accuracy

  • Assessing internal controls and processes

  • Ensuring regulatory compliance and identifying risk

  • Reporting findings and offering recommendations

An audit begins with the auditor, or practitioner, evaluating their client, understanding the organization’s operations, identifying risks, and developing a plan. Fieldwork is a big aspect of an audit. Done on site, the auditor may assess internal controls, interview employees, and gather necessary data and financial statements. The auditor tests to verify the transactions and data and then issues their report.

Auditors use various kinds of software to run their tests and use different checklists and frameworks to check for compliance.

Like tax accountants, auditors have a busy season, too. “If you’re working on public companies, you have to make sure that their financial statements are audited in time for the [Security and Exchange Commission’s] filing deadlines,” said Goldman.

How long does an audit take?

Audits typically last several weeks or months. The length of an audit is determined by the size and complexity of the company, the scope and goals of the audit, and how organized and prepared a company is beforehand.

Audits are also very collaborative. Whether internal or external, auditors speak to various leaders, teams, and employees at every level to learn more about operations, governance, and overall compliance.

“We’re pulling all sorts of different expertise into the audit,” said Lord. “In any given audit, you’re working with people who specialize in controls, technology, evaluation, and different things. No one person can bring all that together.”

A successful audit requires collaboration, networking, and learning the basics about what an organization does.

From entry-level auditor to expert advisor

A career in auditing offers flexibility, variety, and chances for growth. For most, the career starts by earning a bachelor’s degree in accounting and then an entry-level audit position. While you work full time, you can pursue the CPA Exam.

Currently, as chief auditor, Lord no longer performs audits, but she looks back at those memories fondly. After completing her degree and sitting for the CPA Exam, Lord got right to work as an auditor at one of the largest firms.

“I actually had the opportunity to kind of see everything, which was really neat because I had no idea what types of industries I liked. I probably would have defaulted to understanding a manufacturing company, but I found financial services really interesting. I had mortgage banks. I had nonprofits,” said Lord. “Over the course of my career, I touched on a little bit of everything and that was really interesting because you’d get to see the different pressures of different entities, like what they’re focused on, what’s important to them, and how they innovate.”

You can start as an entry-level auditor and grow into a manager, partner, or even a policy influencer, and a CPA license can help get you there. There are also opportunities to coach, mentor, and volunteer.

The most satisfying aspect of her job, Lord said, is the people. “There is nothing more satisfying than watching someone that you helped coach and learn succeed in their career,” said Lord. “Particularly in auditing, you really can’t just hide behind your computer. You’re interacting with your team members, you’re coaching, you’re teaching, you’re interacting with your clients.”

Regardless of the type of auditing you choose to practice, it’s important to chart your future and understand career goals for aspiring accountants.

And auditing offers many ways for someone to get involved with the profession.

Dillard really appreciated all the ways he could volunteer. “I’ve been an advisor to the [Financial Accounting Standards Board] that sets the accounting rules,” he said. “I’ve been on boards that set the auditing rules and the rules for other areas of the profession. For the last 13 years, I’ve been doing a lot of volunteering, speaking at conferences, and it’s really been rewarding.”

Finding purpose through curiosity and connection

A powerful moment in Lord’s career happened in her first few years while she was auditing a client. Lord felt like a burden on the CFO, distracting her from their own tasks and creating more work for her and her team. But the CFO’s response gave Lord a new appreciation for her job, “She said, ‘I love it when you’re here. There’s nobody else that actually cares that much about what I do. You want to talk about all these things that I want to talk about.’”

Paired with their professional skepticism is often a genuine interest in what business leaders are doing. An auditor may not have the technical background to understand niche businesses, but they have curiosity and a collaborative spirit.

“It’s not only the accounting areas and controls we get to geek out on,” said Lord. “But [clients] are so excited to tell me what they’re doing. Getting to have those experiences and letting people brag about what they love to do makes [this job] really fun. It’s really rewarding.”

Tools and resources are available to support you in making an informed decision about your future.

This Way to CPA — A hub for students planning their accounting careers.

Webinars for aspiring CPAs — Virtual events that offer Q&As and “A day in the life of a CPA” webinars.

Everything you need to know about the CPA Exam — From eligibility to scoring details and Exam blueprints.

AICPA career development — News and resources about the profession.

State Boards of Accountancy — Licensing information by state.

NASBA CPA Exam Portal — Official site to apply and check requirements.

Next Stop: CPA podcast — Expert insights, Q&As with CPAs, and much more.

A career in auditing FAQs

A career in auditing is dynamic, fulfilling, and challenging, but making a career choice is not a small decision.

To help you on your career journey, explore these common auditor-related questions to learn how the profession aligns with your career goals.

What’s the difference between internal and external auditors?

An internal auditor can evaluate risks, test controls, and provide assurance that the policies and procedures within their company or organization are working as intended. External auditors travel to an outside organization or company to examine both its financial statements and its internal controls, with the goal of providing assurance on their accuracy and compliance.

Is auditing only about finance?

No, finance is just one type of audit. Other types include internal, operational, compliance, and forensic.

Do auditors travel for work?

Yes, auditors travel all over the globe to work directly with their clients. Auditors can also use drones to survey property.

What software does an auditor use?

Auditors use many data analytics software tools to help them identify trends and irregularities. They also use various platforms to help with planning audits or automating the workflow.

How do I start a career in auditing?

The easiest way to start a career in auditing is to graduate with a bachelor’s degree in accounting (or a similar field) and apply for entry-level auditing jobs. Attaining the CPA license will accelerate your career and enable you to sign assurance reports — something that no other professional can do.

How much do auditors make?

Salaries for auditors vary based on location, experience, and specialization. Entry-level auditors typically earn around $75,000 annually to start; higher-level auditors can earn six-figure incomes later in their careers.

Jamie Roessner, M.A.

Jamie Roessner is a senior content writer at AICPA & CIMA, together as the Association of International Certified Professional Accountants.

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