In the USA, audits must be performed by independent, licensed professionals to ensure financial accuracy and compliance. Certified Public Accountants (CPAs) are the primary, authorized individuals for external financial, statutory, and tax audits. For public companies, auditors must be registered with the PCAOB.
A bachelor's degree in accounting or a related field is typically required to become an accountant or auditor. Completing certification in a specific field of accounting, such as becoming a licensed Certified Public Accountant (CPA), may improve job prospects.
(1) A person shall be eligible for appointment as an auditor of a company only if he is a chartered accountant in practice. (2) Where a firm is appointed as an auditor of a company, only the partners who are Chartered Accountants in practice shall be authorised by the firm to act and sign on behalf of the firm.
Auditors must be enrolled in and comply with the requirements of an approved peer review program and must have undergone a satisfactory peer review of their accounting and audit practice. The peer review must be in effect at the date of the audit report opinion.
The powers of the CAG, regarding audits, are provided for in the Comptroller and Auditor General of India (Duties, Powers and Conditions of Service) Act, 1971. According to this act, the CAG can audit: All receipts and expenditure from the Consolidated Fund of India and of the states and union territories.
Only CPAs have the legal authority to prepare and certify audited financial statements with the SEC.
Professional and industry bodies
To be an external auditor, you'll need to be a qualified chartered accountant and a member of one of the following professional bodies: Association of Chartered Certified Accountants (ACCA)
You can work on an audit without being a CPA. Many firms outsource and/or hire interns to do parts of the audit. These guys don't always have a CPA. The audit report needs to be signed by a CPA (or CPA firm, which should require that partners are CPAs).
The four common types of auditors are Internal Auditors (evaluate company operations for management), External Auditors (independent review of financial statements for outside parties), Government Auditors (ensure compliance with laws for public agencies like the IRS), and Forensic Auditors (investigate financial fraud for legal proceedings). These roles focus on different areas, from internal controls and risk management to financial reporting accuracy and fraud detection.
No, not anyone can perform financial audits. A financial audit needs to be conducted by external firms that are CPA or CIA certified.
If the person to be appointed or his partner holds even a single share (or other securities) of a company, he is not eligible to be appointed as an auditor. However, if a relative of such person holds securities of face value not exceeding Rs.
Become an auditor without a degree by gaining relevant work experience in accounting or finance, earning certifications like the Certified Internal Auditor (CIA), and developing strong analytical and organizational skills.
Both CA and CFA are challenging yet rewarding credentials that offer great career progress. Being an elite accounting qualification, CA is a better option for students wanting to build a career in accounting and taxation. For students interested in finance, CFA is a better choice.
Can I become an auditor without doing CA? Yes, absolutely! You can become an auditor through other professional qualifications like ACCA or CMA USA. These are globally recognized and also open doors to internal and external audit roles, both in India and abroad.
The pass rates hover between 40-50% meaning on average, more candidates fail the exam than pass. Since a career as a CIA requires a sophisticated and technical skill set, this exam is intentionally difficult. Don't let that discourage you! If you do fail any portion of the test, not all hope is lost.
ACCA is the most globally recognized, accepted in more than 180 countries. CPA is well-recognized in the U.S. and its subsidiaries, while CA holds recognition predominantly within India.
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.
CIA vs.
While Chartered Accountancy (CA) focuses broadly on finance, tax, and audit, CIA specializes in internal audit, risk control, and governance—skills increasingly sought after in India's corporate sector.
To act as an auditor, a person should be certified by the regulatory authority of accounting and auditing or possess certain specified qualifications. Generally, to act as an external auditor of the company, a person should have a certificate of practice from the regulatory authority.
The CIA exam costs about $740-1,515 depending on your IIA membership status. The CIA exam is offered around the world via Pearson VUE testing centers. A CIA exam review course can help you earn a passing score. Candidates have a maximum of three years to pass the exam and meet all exit requirements.
It's illegal to audit if you're not a registered auditor and you could be prosecuted. Your accountancy body may impose penalties or remove your licence if you do not carry out audit work to their standards.
If any person is holding a certificate authorizing him to act as an auditor, even though he is not a chartered accountant, he may be appointed as auditor. Such Certificates are not being issued since November 1, 1956. An officer or employee of the company is not qualified to be appointed as auditors of a company.
While both accountants and CPAs handle basic accounting tasks, like helping clients prepare tax returns and analyze financial statements, some examples of tasks typically restricted to licensed CPAs include: Representing clients in IRS proceedings (such as a tax audit).
Career Goals: If you want a wide range of finance and accounting roles, ACCA is the better choice. If your passion is internal auditing and risk management, CIA is more suitable. Time Commitment: Choose ACCA if you're ready for a longer study period (3-4 years).