What is Auditing
If you have a very keen interest in accounting and are good with numbers and calculations, then auditing might be a very good career option for you. Auditing, in simple words, is the inspection of all financial statements and records of a company or an organisation. Auditing is a way of ensuring accountability, transparency and efficiency in carrying out fiscal activities. Today almost all big companies, many private institutions, and even government departments and organisations have to get their financial statements inspected. The person who carries out this inspection is an auditor. An auditor, in general, has to give a fair opinion about the financial position of a company and whether the financial report of the entity reflects the transactions undertaken by it.
In India, the auditing comes in various forms – tax audit, company audit, financial audit, compliance audit, management audit, and many others. The specifications to become an auditor can vary from one type to another. If you dream of becoming an auditor, this post will definitely try to give you a clearer picture of auditing in India.
Eligibility Criteria (UG & PG) of Auditing
Eligibility Criteria for Bachelor’s Degree in Accountancy:
Students applying for B.Com. in Accountancy must have completed their 10+2 examination from a recognised board in India.
Students may have to appear for entrance examinations if prescribed by respective colleges.
Eligibility Criteria for the Master’s Degree in Accountancy and Auditing:
Students applying for M. Com in Accountancy and Auditing must hold a bachelor’s degree in the related subject with at least 55 per cent from a recognised institute in India. Students may have to take PG Entrance exams as conducted by academic institutes.
Students applying for MBA (Accountancy) must hold a bachelor’s degree with at least 55 per cent aggregate marks from a recognised university in India. Students may also have to appear for entrance exams like CAT, XAT, MAT etc.
Eligibility for Chartered Accountancy:
Candidates appearing for CA Foundation Course must have passed class XII examination and successfully completed the Four Months Study Period.
Candidates appearing for CA intermediate Course must have either passed the foundation Course or can have a direct entry if they hold a Bachelor’s/ Master’s degree with not less than 55 percent marks in accountancy.
Candidates who successfully clear the intermediate level can now appear for the final CA examination.
Eligibility Criteria for Diploma Course:
Students must have passed 10+2 level examination from a recognised board in India.
There are several entrance exams that are conducted across the country that can help you in becoming an auditor for companies, government or any other organisation. There are even certification exams conducted by international and national organisations that recognise your excellence as an auditor and permit you to practice auditing at national as well as international level. Let us take a look at some of the most popular exams –
1. Chartered Accountancy Examination (CA): In India, CA is one of the most prestigious exams. CA is not only one of the highest paid jobs in the country, but is also recognised worldwide and receives huge respect. CA exam is conducted by the Institute of Chartered Accountant of India (ICAI) and is considered to be one of the toughest exams in India. On clearing CA exam, a candidate is enrolled in the CA course in order to become an accountant or an auditor.
2. The Institute of Cost and Works Accountants (ICWAI) Exam: ICWAI offers a foundation, immediate and final course on cost and management accountancy. In order to get into this course, candidates have to clear the ICWAI examination. This course helps in becoming a financial auditor for various entities.
3. Common Aptitude Test (CAT): Candidates can also pursue auditing after successfully completing an MBA in Accountancy. In order to get into top colleges offering MBA Accounting courses, CAT is an essential examination. CAT is one of the biggest national level exams that opens up the portal for top management institutions (IIMs) and business schools.
4. Management Aptitude Test (MAT): MAT is an all India exam conducted by the All India Management Association. Candidates who are willing to first get an MBA Accountancy degree and then move to audit, can appear for this entrance examination to get into top MBA colleges in the country.
5. Delhi University Post Graduate Entrance Examination: Candidates who want to become an auditor can also enroll themselves in M. Com (Accounting and Auditing) courses offered by various courses. Colleges like Shri Ram College of Commerce, Hindu College, Ramjas etc. are top institutes in India that offer M. Com in Accounting and Auditing. In order to get into these colleges, a candidate has to pass a PG Entrance Exam conducted by DU.
6. Certified Internal Auditor (CIA) Examination: If you hold a bachelor’s/master’s/equivalent diploma or certificate in accountancy and auditing and have good experience as an internal auditor, then the CIA exam can help you in earning a global designation as an internal auditor that can help you in earning respect and great job opportunities nationally as well as internationally,
7. Certified Information Systems Auditor (CISA) Certification Examination: CISA is conducted by a global accounting and auditing organisation called the Information Systems Audit and Control Association (ISACA). In order to get the certificate, you have to clear this examination which will certify you globally as an Information Systems Auditor or an Information Technology Auditor.
Scope of Auditing in India and Abroad
Auditing is undertaken by almost every commercial and government entity. From auditing taxation to compliance of an entity, auditors have to deal with a lot of calculations and analysis. Auditing is not only a well-respected job, but it also is one of the highest-paid jobs in India. There are various types of auditing, and each one has its own requirement. If you get a CISA certification, you can become a certified IT auditor. Likewise, on getting a CIA certification, you are globally certified as an internal auditor. So, auditing has a very broad scope in terms of job choices. Auditing offers job positions from auditors, management analysts, financial analysts to chartered accountants for big companies. Auditing is recognised not just in India but also worldwide. So, if you can clear auditing examinations that certify globally, you can end up in big corporates internationally.
Course Fees Auditing
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In order to excel in auditing, candidates must possess great knowledge in the following subjects/topics -
Topics/ Subjects Included in the Auditing –
Cost and Management Auditing
Law and Ethics
Cost and Management Accounting
Strategic Performance Management
Multi-disciplinary Case Study
Customs and FTP
Advanced Auditing and Professional Ethics
Fundamentals of Mathematics and Statistics
Economics and Management
Administrative Procedure and ICDS
Company Accounts and Audit
Corporate Laws and Compliance
Strategic Cost Management
Corporate Financial Reporting
Tax Laws and Practice
Careers in Auditing
Auditing is a highly-demanding line of study and profession. It is well recognised globally and provides a wide range of career options. You can become an internal auditor for big companies, a government auditor, in fact, you can even land up becoming the Comptroller Auditor General of India (CAG). Budget Analysts, personal financial advisor, management analyst, financial manager, are some of the career options you can choose if planning to do auditing.
New accounting and auditing applications have emerged for auditors. These are being taught in various courses offered by accounting and auditing institutions. Many new certification programmes have also emerged which help auditors in getting designations as global and national auditors.
Job Profiles and Top Recruiters
As an internal auditor, you have to maintain the financial records of your company and make sure that all the internal business operations are being carried out in compliance with the law.
As a government auditor, you have to maintain all government records and examine it in accordance with the rules and regulations prescribed by law.
As an IT auditor, you are given the job of inspecting the technological infrastructure of an entity and checking the system’s efficiency and security.
Personal Financial Advisor
As a personal financial advisor, you work for companies, assess their financial conditions and advise them to ensure efficacy in order to achieve its business goal.
As a budget analyst, you have to review budgets of entities and add new entries or make suitable changes in fund allocations for maximising profit and minimising loss.
1. Government Institutions
2. Finance Companies
3. Insurance Companies
4. Accounting Companies
5. Financial Management Consultancies
Annual Salary (Approx.)
Rs. 2,00,000 – Rs. 15,00,000
Rs. 2,00,000 – Rs. 15,00,000
Rs. 1,00,000 – Rs. 10,00,000
Personal Financial Advisor
Rs. 1,50,000 – Rs. 12,50,000
Rs. 1,60,000 – Rs. 12,50,000
**The salary figures mentioned anywhere in this article is just for reference purposes. Please treat them as such. Actual salaries may vary depending on respective candidates, employer, job location and numerous other factors.
Required Skillset for Auditing
· Analytical Skills: Auditors have to analyse monetary as well as non-monetary conditions of an entity and to come to a rational conclusion, analytical skills are very important.
· Mathematical Aptitude: Auditing is a lot about handling financial transactions and keeping a check on all the financial accounts of an entity. This inspection requires a lot of mathematical calculations; therefore, it is very important for an auditor to have a mathematical aptitude.
· Business & Accounting Acumen: Auditors should have a business and accounting acumen which will help them in understanding the financial position of an entity and study various business operations and accounts whether established in compliance with rules and regulations as prescribed by the law or not.
· Evaluating Mind: An excellent assessing mind can assist in fair inspection and judgement of the fiscal state of an individual. An auditor 's views should come from his or her expertise and experience and not from prejudice.
· Technical Skills: An auditor has to work on various accounting software and has to handle financial records on computers. In order to be able to handle that, an auditor should know how a computer or such applications function.
Popular Auditing Colleges in India VIEW ALL
Frequently Asked Questions (FAQs)
Question: What is the eligibility criteria for Institute of Cost and Works Accountants (ICWAI) Foundation Course?
A student who has completed his/ her higher senior secondary examination or equivalent from a recognised board in India and is not less than 17 years in age is eligible for registering in the ICWAI Foundation Course.
Question: What is the eligibility criteria for CIA in India?
Candidates must hold a bachelor’s/ master’s/ associate’s degree with 24/ 12 / 60 months of internal auditing experience respectively.
Question: What is the minimum age limit for the CA exam?
The minimum age limit for appearing in the foundation CA exam is 17 years.
Question: What is the work of the Comptroller and Auditor General of India?
The work of the Comptroller and Auditor General of India is to audit all the financial statements of the government and to inspect the financial reports of all government bodies.
Question: When will the CAT 2021 exam be held?
The dates for CAT 2021 exams have not been announced yet, but the date for registering for the exam has started.
Questions related to Auditing
which has more scope and salary between bcom accountancy and finance or bcom accounting, auditing and taxation
There is nothing much of a difference seen by people in job market among the both.
Some basic points of difference in both the courses are:
Bcom is related to accounting and finance + other areas of business and trade.
B.A.F. is related to accounting and finance.
BCom: since the course is general in nature. However, have a wider choice in higher studies that would get a good start to your career.
B.A.F.:since the course is general in nature, you need to do a specialisation in accounting/finance higher studies to get a good start to your career.
Bcom: The choices are wider and students gets basic idea of other areas of commerce and trade, viz., HR, export-import, economics etc., However, since there is no specialisation to choose, it lacks focus in any one area of study, though accounting is a major subject in the bcom(honours) gives students a choice of specialisation in its last year
B.A.F. :Students are given all the basic training in accounting and finance. However, it neglects other areas of commerce and trade viz., HR, export-import etc.,
Bcom: It is for studdents who want to get a graduation degree and who are basically good in accounting, but are also open / would like to have a wider choice of subjects for higher studies later viz., Economics, Industrial Psychology, HR, Export-Import etc.,
B.A.F.: BAF is for students who are determined to make a career in accounting & finance field.
Hope this helps you
All the best for your future
which degree is best for ca bcom accountancy and finance or bcom auditing taxation and accounting is best
B. Com accountancy and finance is the best option for student who want to make career in commerce, accounting, finance, banking and insurance.
B. Com accountancy and finance is also ideal for those who want to pursue chartered accountancy, cost accounting and company secretaryship.
Hope this information will help you
do greit have auditorium ? can anyone
Yes Gokaraju Rangaraju Institute of Engineering and Technology, Hyderabad provides auditorium facility. The facilities provided by Gokaraju Rangaraju Institute of Engineering and Technology, Hyderabad are Boys hostel, Girls hostel, Gym, Library, Sports, Cafeteria, Hospital, IT infrastructure, Transport, Laboratories and Bank facilities. Gokaraju Rangaraju Institute of Engineering and Technology, Hyderabad was established in the year 1997. GRIET is a self-financed institute and is permanently affiliated to and autonomous under JNTUH, Hyderabad and is approved by AICTE.
what is internal and external auditing ?
- Internal auditors are independent, objective assurance and consulting activity designed to improve organisation.
- External auditors should with specific with laws and rules for financial statements of organisations.
- Internal auditors examine issues related to company business practices and Risk's.
- External auditors examine the financial records and issues/opinions regarding financial statements.
- Internal Audits are conducted throughout the year
- external Audits are conducted a single annual audit
- internal audits are company employees
- External Audits work for outside Audits
- Internal auditors are hired by company
- external Audits are hired by share holders
In simple internal auditors are working for building company reputations and external auditors work to maintain a company reputation without having any external problems of financial issues.
hope I was relevant and cleared your question.