What Does an Auditor Do? Job Description, Salary, and Career Path

Auditors examine financial records, internal processes, and compliance with laws and standards to provide independent assessments of organizational accuracy, integrity, and control effectiveness. The specific activities depend heavily on the type of audit and the auditor's employer setting.^[1]

External auditors at public accounting firms conduct financial statement audits — systematic examinations of financial records to express an opinion on whether the statements present fairly, in all material respects, the financial position of an organization in conformity with Generally Accepted Accounting Principles (GAAP).

Internal auditors evaluate an organization's risk management, internal controls, and governance processes from inside the organization itself.

IT auditors examine technology systems, data security, and information controls.

Government auditors conduct performance audits, program evaluations, and financial audits of government agencies and publicly funded entities. For a broader understanding of the accounting profession that encompasses audit, see our guide on what an accountant does.

Professional Skepticism in Auditing

External auditors typically:

• Plan audit engagements by assessing risk, understanding the client's business and industry, and developing audit programs
• Test transactions, account balances, and disclosures using statistical sampling and analytical procedures
• Evaluate internal controls over financial reporting (particularly required for public company audits under PCAOB standards)
• Communicate audit findings to management and audit committees
• Issue audit opinions expressing whether financial statements are free of material misstatement^[1]

Internal auditors typically:

• Assess the adequacy of internal controls over business processes (finance, operations, IT, compliance)
• Conduct operational audits evaluating efficiency and effectiveness of business processes
• Perform compliance audits verifying adherence to laws, regulations, and policies
• Report findings and recommendations to senior management and the audit committee of the board
• Follow up on prior audit findings to verify corrective actions were implemented

IT Auditing

Most auditor positions require a bachelor's degree in accounting, finance, or a related business field.

For external audit roles at public accounting firms — including the Big Four (Deloitte, PwC, EY, KPMG) and regional CPA firms — the CPA license is either required or strongly expected for advancement.

The 150 credit-hour educational requirement for CPA licensure means most new audit hires are completing a master's degree or will do so within their first few years.^[1]

Internal auditors seeking professional recognition may pursue the Certified Internal Auditor (CIA) credential, administered by the Institute of Internal Auditors (IIA).

The CIA requires passing a three-part examination covering internal audit essentials, internal audit practice, and business knowledge for internal auditors, plus 24 months of qualifying internal audit work experience.

The IRS also employs tax compliance specialists who perform auditing functions; these roles may require different credentials depending on the position.

Big Four vs. Government vs. Internal Audit

The BLS Occupational Outlook Handbook reports the median annual wage for accountants and auditors (combined category) at approximately $79,880 as of the most recently published data, with the top 10% earning more than $137,280.^[1] Audit-specific compensation varies by setting: Big Four firms typically offer starting salaries of $65,000–$80,000 for new associates in major markets, with advancement to manager ($100,000–$140,000) and partner ($300,000–$700,000+) over a 10–15 year career.

Internal audit directors typically earn $100,000–$160,000, while Chief Audit Executives at large corporations may earn $150,000–$300,000+.

For comparison, the accountant salary guide covers the full compensation spectrum across accounting and audit roles.

The 4% projected growth over the 2022–2032 decade reflects steady but not dramatic expansion in audit employment, driven by regulatory requirements (Sarbanes-Oxley public company requirements, FDIC bank examination, nonprofit audit requirements), fraud prevention needs, and the growing complexity of global business operations.

IRS Tax Audits and Compliance

The career path to professional auditor status typically involves:

:

1. Step 1: Complete a bachelor's degree in accounting from an accredited institution, with coursework covering financial accounting, auditing theory, managerial accounting, taxation, and business law.
   
   
2. Step 2: Meet the 150-hour requirement for CPA licensure (if pursuing external audit) through a master's program or additional coursework. Many audit-track candidates complete a Master of Accounting (MAcc) or combine additional undergraduate hours.
   
   
3. Step 3: Obtain an entry-level audit position. Big Four and regional CPA firm staff positions, government audit trainee programs, and corporate internal audit analyst roles provide foundational experience.
   
   
4. Step 4: Pass the CPA exam (for external audit) or CIA exam (for internal audit). Work through exam requirements while accumulating required work experience for licensure. Our companion guide on what a CPA does explains the professional scope the license unlocks.
   
   
5. Step 5: Advance through the audit career ladder — from staff to senior to manager to director/partner, developing specialization in an industry sector (banking, healthcare, technology) or audit type (IT, forensic, operational).

Auditing suits professionals who are analytical, detail-oriented, and possess strong ethical standards — the profession's core value of independence and objectivity requires practitioners to resist pressure from clients or employers to overlook problems or adjust findings.

The work involves intensive reading of documents, testing of data, and structured reporting — appealing to those who prefer methodical, evidence-based work over entrepreneurial uncertainty.

External audit in public accounting is one of the most respected entry points into the accounting profession, providing broad business exposure, strong technical training, and credentials that transfer well to corporate finance and executive roles.

Many CFOs, controllers, and audit committee members began their careers in public accounting audit.

The demanding busy-season hours are a known challenge of early public accounting careers.

Those comparing audit to adjacent careers should also explore what a financial analyst does — a path that offers similar analytical depth with different regulatory structure and, for investment banking roles, higher compensation potential at senior levels.