For auditors, the scope is most often much larger, as they tend to consider the complete financial history and implications of finance use over a long period of time. This can involve more time reviewing individual financial statements and records than an accountant takes.
Compensation for audit and tax is comparable.
If you're trying to decide which field to enter solely for monetary purposes, both are consistent in terms of pay in either public or private accounting firms.
Accounting is required as soon as a business starts processing financial transactions. Every business owner needs accurate records of all financial information. Auditing ensures that every business presents a true and fair view of their financial position.
$500k/year as a self-employed accountant is theoretically possible, but it's rare. If it is done, it's usually done with a few whales for clients (and probably with a lot of expensive consulting tossed in), rather than a bunch of little clients.
A CPA's salary usually reaches the high five figures while senior CPAs in management can earn a six-figure salary.
The field of internal audit can be demanding and stressful. Auditors often face high-pressure situations, and the responsibility of ensuring financial integrity and compliance with regulations. In addition, their presence can be unwelcome, and their motivations are often misunderstood.
In addition to education, many job positions for audit professionals also require a CPA license. And to specialize even further in your auditing career, you could earn a Certified Internal Auditor (CIA) certification—giving you more auditing credibility, earning potential, and job opportunities.
Auditors receive an average salary of $83,000 per year.
However, as you progress in the accounting field, you have the potential to earn over six figures. How do you reach these higher pay grades? A master's degree in accounting is one way to help fast-track your career and increase your earning potential.
While it is true that auditors are generally not paid as well as some other accounting professionals, the salary difference can be influenced by several factors: Supply and Demand: The demand for auditors is typically higher than the supply of available positions.
Career path and progression
As an experienced external auditor, you could move into management and then become a partner or finance director. You could also set up your own accountancy practice.
The hierarchy of accounting positions begins with the chief financial officer (CFO) at the top and progresses down through vice president of finance, controller, accounting manager and assistant controller, senior accountant, accountant, staff accountant and accounting clerk, to payroll and bookkeeper.
Qualify as a Registered Auditor. Qualifying as a Registered Auditor requires you to first qualify as a Chartered Accountant (SA) and usually takes a minimum of 8 ½ years but can be done in 7 ½ years if you are able to qualify as a Chartered Accountant (SA) within 6 years.
The CIA certification is designed for internal audit professionals and covers risk management, governance, and business acumen. On the other hand, if you like accounting or finance subject areas, then CPA certification may be a better choice.
Accountants are responsible for preparing financial documents, monitoring day-to-day bookkeeping for a firm's operations, and/or preparing and filing tax forms. Auditors verify the accuracy of financial statements and tax filings and may search for clues as to why some figures don't quite add up.
The working environment for auditors
Working hours can be over 40 hours per week, as auditors have full-time schedules. These professionals also work for longer hours during important times of the year, like tax season or the end of the budget year.
Auditing is mostly a desk job
Because auditors attend frequent client meetings, they often travel to company sites all over the country (and sometimes the world). And because some auditing work can be done autonomously, auditors are also able to work remotely.
There are currently an estimated 1,538,400 auditors in the United States. The auditor job market is expected to grow by 4.4% between 2022 and 2032.
Only a small fraction of CPAs make $500k a year, but it is possible. And it is faster to achieve in your own firm than by working for a large public accounting firm or getting a corporate job in the industry. To make big money in a solo practice or a small firm, your strategy will differ greatly from the big firms.
The Big Four are the four largest professional services networks in the world: Deloitte, EY, KPMG, and PwC. They are the four largest global accounting networks as measured by revenue.
Accountants need to be proficient in basic arithmetic, algebra, and statistics to analyze financial data, prepare reports, and ensure accuracy in their work. They may also use mathematical principles to perform tasks such as budgeting, forecasting, and financial analysis.