How to Become an Auditor in India

Becoming an auditor in India offers excellent career growth, especially for those interested in finance and accounting. To pursue this path, you typically start with a degree in accounting or finance and aim for certifications like Chartered Accountant (CA) or Certified Public Accountant (CPA). Gaining experience in audit and accounts, especially in organizations like the Comptroller and Auditor General (CAG) of India, is essential. Familiarity with the Companies Act and understanding performance audits, audit reports, and the role of the CAG of India is crucial for working in the Indian Audit and Accounts Department or with state governments and public sector enterprises. Continuous learning and skill development are key to excelling in this field, ensuring compliance and transparency in government audits.

Who is an auditor?

An auditor is a professional responsible for evaluating the accounts, financial statements, and internal control books of an organization through examination and systemization. The role involves verifying the accuracy, transparency, and compliance of financial documents with regulatory authorities like the Comptroller and Auditor General (CAG) of India. Auditors often work with the Indian Audit and Accounts Department, overseeing audits of state governments, union territories, and public sector enterprises. They also ensure adherence to the Companies Act and conduct performance audits to assess the financial health and operational efficiency of various entities. As part of their duties, auditors contribute to generating audit reports that are critical for maintaining accountability and transparency in the financial operations of the Government of India and other governmental bodies.

Eligibility Criteria to Become an Auditor in India

To become an auditor in India, the minimum qualification required is a Bachelor’s degree in accounting or other related fields. However, for better career growth in the profession in India, it's advisable to pursue a Master’s degree or specialized courses such as the US Certified Management Accountant (US CMA) and Association of Chartered Certified Accountants (ACCA). These qualifications improve job prospects and open doors to work with the Comptroller and Auditor-General of India, government companies, and public sector enterprises, or to engage in internal auditing, statutory audits, and preparing profit and loss accounts, books of accounts, and loss accounts and balance sheets.

As part of the accounts service, auditors may be assigned to audit public undertakings, local bodies, Indian companies, or departments such as the department of telecommunications, income tax department, and goods and services tax offices. The audit practices and audit of expenditure follow the guidelines under Article 148 of the Constitution of India. Auditors work to maintain transparency and accountability in the receipts and expenditure of the union and the states, and their reports contribute to the reports of the CAG, which are submitted to the Parliament of India, President of India, and reviewed by public accounts committees and legislative assemblies. This field offers a promising future if you follow the right educational path and gain the required qualifications

However, for better opportunities, you must consider pursuing a Master’s degree in a relevant field. Also, specialised programmes like US Certified Management Accountant (US CMA courses) and Association of Chartered Certified Accountants (ACCA courses) will help you have better job prospects for an auditor. 

Educational Pathway to Become an Auditor in India

Below is a simple educational pathway you can follow to become a certified auditor. 

1. Bachelor’s Degree

• Bachelor in Commerce (B.Com.) in Accounting

• Bachelor of Commerce in Taxation

• Bachelor of Business (BBA) in Accounting

• Bachelor of Commerce in Finance

• Bachelor of Commerce in Banking and Insurance

• Bachelor of Commerce –Chartered Accountancy

2. Master’s Degree

• Master of Commerce (M.Com.) in Accounting and Finance

• MBA in Finance and Accounting

• Master of Commerce in Accounting and Auditing

• M.Com in Accountancy and Taxation

3. Specialised Certification Courses

• Certified Internal Auditor by IIA

• Certified Public Accountant by AICPA

• Enrolled Agent Courses by IRS

Steps to Become an Auditor in India

You can easily become a successful auditor in India by following the right path. First, complete your 12th class and enrol in an undergraduate degree in accounting. After earning your Bachelor’s degree, you can pursue a relevant Master’s degree or the Certified Internal Auditor course by the Indian Institute of Internal Auditors. For those interested in working internationally, enrolling in courses like US CMA, ACCA, Enrolled Agent, or CPA US will help you enter the global job market. Upon obtaining the necessary certifications, apply for internships or jobs in both India and abroad, focusing on organizations that work with the Government of India, state governments, or public sector enterprises. These roles involve working with financial statements, preparing audit reports, conducting performance audits, and ensuring compliance with statutory audits and the Companies Act. Understanding the Constitution of India, particularly Article 148 on the Comptroller and Auditor General (CAG) of India, will also be important for your career.

Popular Certifications for Auditors

You must pursue a suitable certification course to achieve the skills necessary to become an auditor. Below are some short-term courses that will help you gain these skills and pursue a career in auditing. 

CIA

To become an excellent internal auditor, you must enroll in the Certified Internal Auditor course. This advanced short-term course by IIA allows you to gain skills and knowledge in the internal audit field. 

ACCA

Students usually ask can ACCA become auditor. You must know that the Association of Chartered Certified Accountants certification course is quite useful if you wish to become an auditor. It equips you with advanced concepts of the field.

US CPA

The US Certified Public Accountant course by AICPA is another option for you to become an auditor. This widely accepted certification covers all the advanced topics that you need to understand to enter the auditing world. 

US CMA

The Certified Management Accountant course by the Institute of Management Accountants is also suitable for gaining analytical skills to become an auditor. 

Enrolled Agent 

You can also opt for the Enrolled Agent certification by the IRS to gain the necessary skills for becoming an auditor. This course is especially suitable for students aspiring to become external auditors. 

Career Opportunities for Auditors in India

Auditors in India have several career opportunities. Some of the most common ones are as follows.

• Internal Auditor

• External Auditor

• Forensic Auditor

• Tax Auditor

• Government Auditor

• Risk Auditor

• Environmental Auditor

• Auditor in public Sector Enterprises

• Auditor Manager

• Consultant Auditor

Skills Required for Auditors

Auditing is much more than just verifying financial records. It needs you to work with a team and interact with employees and the authority of the company as well. 

Therefore, you must have the following skills to become a practicing auditor:

• Communication skills

• Financial skills

• Attention to detail

• Analytical skills

• Deadline adherence

• Business acumen

• Initiative driven

• Collaboration

• Critical thinking

• Organisation

Salary Insights for Auditors in India

Auditors in India earn high salary packages, though the compensation depends on factors such as experience, city, organisation, and job position. The average annual salary for auditors in India typically starts from INR 4 lakhs and can go up to INR 10 lakhs. Professionals with certifications like US CPA, ACCA, or a Chartered Accountant qualification, which is recognized by the Institute of Chartered Accountants of India, often earn higher salaries.

Auditors working with government companies, public sector enterprises, or central government departments may also receive competitive pay, especially if they are involved with high-level audits such as the statutory audit of the Consolidated Fund of India or the CAG report. Moreover, auditors who work internationally, particularly in countries like the USA, UK, Singapore, or the UAE, can expect even more lucrative offers. Their roles may include auditing the accounts of the government, preparing audit reports, conducting performance audits, or working with public accounts committees and ensuring transparency and accountability within government-owned corporations.

Conclusion

Auditing is a vast field with various career opportunities in India. If you are interested in becoming an auditor, following the right career path is essential. As an auditor, you may work with government companies, public sector enterprises, or central government departments, auditing everything from the Consolidated Fund of India to public accounts and profit and loss accounts. The Comptroller and Auditor-General of India (CAG) plays a crucial role in conducting audits, and you may be involved in statutory audits, performance audits, and ensuring transparency and accountability in government expenditures. With certifications like US CPA, US CMA, and ACCA, you can also access lucrative opportunities both in India and abroad.

To prepare for these prestigious certifications, you can explore the preparation courses provided by NorthStar Academy, where expert instructors like M Irfat Sir will guide you through the process. Becoming a certified Chartered Accountant or passing other international certifications will open doors for working in roles that deal with internal auditing, statutory auditors, and audit reports for entities such as government-owned corporations, state governments, and Indian companies. Following the right educational and professional path will help you build a successful career in accounting and auditing.