Description and Overview of Occupation - Research Paper Example

 Description and Overview of Occupation Auditing refers to the critical analysis of the books of accounts. Organizations are major procurement entities that purchase materials and other equipment on a daily basis. All the expense incurred must be considered in the books of accounts so that follow-up can be made. At the end of every financial year, the law requires financial institutions to come up with financial reports. The role of auditors entails making verifications on whether the financial reports give an accurate reflection of the financial position of a business enterprise (Gramling et al, 2012). Auditing is a professional work that is conducted by qualified auditors. The scope of their task covers numerous activities that revolve around a work setting. Once the books of accounts have been prepared, they critically examine the books to detect any forms of discrepancies and report them to the relevant authorities. In their reports, auditors give their recommendations so that similar mistakes cannot be repeated. In addition, they verify the physical assets and liabilities held by an organization (Whittington & Delaney, 2013). The role of auditors has evolved since the introduction of the profession in the corporate world. Interestingly, the principles used in auditing were introduced in the ancient days but the job started attracting attention in the recent years. In addition, technology has changed the face of auditing. Unlike, the previous where much paperwork was involved, technology has significantly improved the auditing profession. Technology has enhanced the performance of auditors and improved reliability of their recommendations (Gramling et al, 2012). A day in the life A typical day in auditing entails a number of activities. Auditors act as watchdogs that protect the interest of stakeholders. Auditors have to examine the books of account to detect any fraudulent recordings. The finance department is mandated with the responsibility of managing cash. Some finance may have malicious intentions of embezzling funds allocated for projects. They collude with accountants who have the expertise of altering books of accounts something that cannot be done at prima facie. Consequently, organizations must hire experts who can detect such fraudulent activities (Whittington & Delaney, 2013). Conversely, they also verify the assets and liabilities of an organization physically. While preparing the statements, accountants may overstate or understate the value of physical assets and liabilities in a bid ensure they reflect the actual financial position of the enterprise. It is the responsibility of auditors to visit the physical assets and liabilities held by the organization and confirm they exist. Furthermore, they should evaluate whether the value stated accurately reported. Moreover, they countercheck the arithmetic accuracy of the books of accounts. Once they detect any errors, they give suggestions on how the management can prevent the errors in their reports (Gramling et al, 2012). The number of hours auditors are required to carry out their tasks depends on the management running an organization. Although there is no standard number hours that auditors are required work, it has been suggested that auditors give optimal performance when they work for an average of five hours a week (Scientology, 2015). Salary range and career ladder In the US, auditors earn an average of $50,000 in a year. However, the pay also depends on the experience an individual. Furthermore, geographical factors also influence the net pay for auditors. Washington tops the list of states that offers competitive salary packages for auditors with San Francisco coming second. Seattle and Indianapolis are among the states that offer unattractive remuneration packages for their auditors. The pay scale for auditor’s ranges from $30,000-80,000 per year depending on the level of years and individual has been practicing (Whittington & Delaney, 2013). The sequence of auditing positions can be classified into four categories. The lowest level is the entry-level position for internal auditors. Entry level accounts only possess the basic skills of the profession. On average, entry level accountants earn about $40,000 per year. Lead internal auditors follow entry level managers in the corporate ladder. Lead auditors are conversant with auditing activities and provide solutions on how organizations can overcome some of the challenges they face. Lead auditors earn an average of about $70,000 a year. On the other hand, internal audit managers have the mandate of supervising and implementing internal control changes. They earn about $105,000 a year. The chief auditor is the most senior in the profession of auditing. They have the responsibility of formulating audit plans. They earn an average of $140,000 annually. In order for auditors to climb the corporate ladder, they must have prior experience in producing quality work and understand the industry standards (Whittington & Delaney, 2013). General Employment Outlook It has been suggested that the number of auditors in US is likely to grow with a margin of more than 13% by the year 2022.Economists also suggest that the growth will depend on economic growth. A robust economic growth will increase the number of firms in need of auditing services. In addition, business models are become more complex given that many organizations have entered the global market. Hence, the need for accountability has also created numerous job opportunities for auditors. In 2012, the number of registered auditors and accountants was 1,275,400.By the year 2022, the number of auditors is expected to be 1,442,200. Conversely, almost all types of organizations utilize the auditing career (United States Department of Labour, 2015). Education and Training In order for one to start practicing as an auditor, one must have either a master’s degree or a bachelor's degree. In addition to the degree and masters certificates, professional can acquire alternative professional such as the Certified Fraud Examiner or the Certified Public Accountants. Furthermore, for auditors to carry out their mandate, legally they must be affiliated to professional; bodies that regulate their operations. For instance, they are required to acquire licenses from the International Register of Certified Auditors. Copies of transcripts, a letter of recommendation from the University, and a letter from the evaluation service are some of the requirements for auditors (United States Department of Labour, 2015). Personal skills Attributes Attitudes Problem solving skills Patience Optimistic Analytical skills Imaginative Resiliency Excellent communication skills Attention to details Confidence Critical thinking Independent Aggresive Source: Auditing Past changes and anticipated changes for the occupation The field of auditing is rapidly changing especially with technological advancements. In the traditional audit, the auditors collected information and presented their findings to the managers and gave their recommendations on changes that needed to be made. However, a need to change the scope of work was necessitated due to the hectic paperwork that was involved (Whittington & Delaney, 2013). Significant changes were later on made that saw the introduction of automated auditing that replaced the traditional auditing style. The automated auditing style was met with serious challenges the major one being resistance from stakeholders. Change should be introduced in bits without getting rid of the traditional style using a one-off transition. However, the traditional auditing method is efficient because it has managed to cut the cost involved in carrying out audit work (Gramling et al, 2012). In the future, the field of auditing is expected to be more improved. Stakeholders in the industry have argued that organizations should adopt modern verification approaches instead of sticking to the traditional methods that are considered to be outdated. Stakeholders have raised concerns about the depth of data and methods used to automate the information collected (Gramling et al, 2012). Connection with values, interests and personality Auditing requires characters that are honest and demonstrate a high level of integrity. In addition, it requires a person who enjoys identifying and solving problems. A maximum level of honesty is required. Organizations can hire internal auditors or invite external auditors to verify the accuracy of their books. There are pros and cons of hiring internal auditors. The cost incurred in hiring the services of internal auditors is relatively lower than outsourcing the services of an external auditor. Furthermore, internal auditors can be easily influenced to alter the books of account so that they can favour the objectives of the senior managers. Professionals who are unable to uphold their values such as being honest. In such circumstances, auditors are expected to demonstrate the highest level of professionalism by being honest. In addition, personalities who enjoy identifying problems and resolving them are likely to find the auditing profession to be very enjoyable (Whittington & Delaney, 2013). The process of detecting problems requires a lot of working hours. Therefore, the auditor is supposed to be patient as sometimes they may be required to for extra hours. The integrity of auditors is assessed by evaluating the results given in their reports. They should be fair but firm while presenting their reports and avoid any form of external influences. Although, auditors face a threat of losing their jobs, it is imperative that they should demonstrate the highest level of professionalism and cooperate with all stakeholders. Their work is very sensitive to the stakeholders of an organization. Investors and other stakeholders apply information availed to make significant investment decisions. Consequently, auditors should use all means possible to safeguard the interests of the stakeholders. If auditors give misleading information, investors are likely to make erroneous decisions something that is unethical in the field of accounting (Whittington & Delaney, 2013). References Gramling, A., Rittenberg, L. & Johnstone, K. (2012). Auditing. Mason, Ohio: South- Western/Cengage Learning. Scientology, (2015).How Many Hours a Day can One Participate in Auditing? [29.4.2015]. < http://www.scientology.org/faq/scientology-and-dianetics-auditing/how-many- hours-a-day-can-one-participate-in-auditing.html>. Ucuzoglu, J. (2015, April 29). Informational Interview. [Personal interview]. United States Department of Labor, (2015).Bureau of Labor Statistics: Occupational Outlook Handbook. [29.4.2015]. < http://www.bls.gov/ooh/Business-and- Financial/Accountants-and-auditors.htm#tab-6> Whittington, R. & Delaney, P. (2013). Wiley CPA exam review 2013. Hoboken: Wiley. Appendix I: Interview Interviewer: Welcome for the interview. Interviewee: Thank you. Interviewer: I understand that you have been in the field of auditing for more than two decades. How has the experience been for you? Interviewee: My experience in this field has been overwhelming, although there have been some ups and downs. We have managed to restore organizations that were once reporting a lot of losses into profit making. Our field is primarily involved in identifying discrepancies in organizational processes. We then suggest strategies that can be implemented to eradicate the leakages. Interviewer: Sounds like a troubleshooting work. Interviewee: Absolutely. Interviewer: You had stated earlier on that there are a number of challenges that you face. Could you please discuss one of the impediments for auditors? Interviewee: We are sometimes short-changed. Sometimes managers try to bribe us so that were cannot disclose some information. Some of our colleagues end up being trapped in such circumstances. Interviewer: Could you suggest some of the ways professionals can avoid the trap? Interviewee: As auditors we need to abide by our code of ethics, maintain our integrity and stay loyal to our careers. Interviewer: Well said. Thank for participating in the interview. Interviewee: You are welcome. Source: (Ucuzoglu, personal communication, 2015). Read More