What Does an Audit Intern Do?

An Audit Intern steps into the dynamic world of financial examination with the aim of supporting the audit team in evaluating the accuracy of a company’s financial statements and ensuring compliance with regulatory standards. This role offers a unique opportunity for individuals to immerse themselves in the practical aspects of auditing, from understanding the intricacies of financial reporting to developing a keen eye for detail in reviewing financial documents. By assisting in various stages of the audit process, the intern not only contributes to the efficiency of the team but also gains invaluable insights and hands-on experience in the field of accounting and finance. This position serves as a foundational step for those aspiring to carve out a career in auditing, providing a platform to learn, observe, and apply theoretical knowledge in real-world scenarios.

Audit Intern Job Duties

• Assist in the examination of financial statements to ensure accuracy and compliance with applicable standards and regulations.
• Participate in inventory counts to verify asset existence and condition, documenting findings for audit evidence.
• Prepare detailed reports on audit findings, highlighting discrepancies, risks, and recommendations for improvement.
• Review internal controls and processes, evaluating their effectiveness and efficiency in mitigating risks.
• Analyze financial data using audit software to identify trends, anomalies, or deviations from expected results.
• Support the audit team in interviewing staff to gain insights into procedures and validate the accuracy of financial records.
• Assist in testing IT systems and controls to ensure the integrity and security of financial data.
• Compile and organize supporting documentation and work papers that form the basis of audit conclusions and findings.

Audit Intern Salary & Outlook

An Audit Intern’s salary is influenced by the size and industry of the employing firm, the intern’s educational background, particularly in accounting or finance, and the complexity of the audit tasks assigned. Prior relevant internship experience and proficiency in audit software can also significantly impact compensation.

• Median Annual Salary: $55,125 ($26.5/hour)
• Top 10% Annual Salary: $115,000 ($55.29/hour)

The employment of audit interns is expected to grow at an average rate over the next decade.

This growth is driven by increasing regulatory complexities, financial transparency demands, and the need for companies to ensure compliance with accounting standards. Audit interns provide essential support in navigating these challenges, making their role increasingly crucial in the evolving financial landscape.

Audit Intern Job Requirements

Education: Audit Intern positions typically require candidates to be pursuing or have completed a Bachelor’s Degree in Accounting, Finance, or a related field, with a strong preference for coursework in auditing, financial accounting, and tax laws. A Master’s Degree in Accounting or Business Administration enhances prospects. Academic performance, particularly in relevant subjects, is often considered, alongside participation in related extracurricular activities or clubs, such as a college’s accounting society.

Experience: Audit Interns typically come from a background rich in practical auditing or accounting experience, often having progressed through roles that have honed their analytical and financial assessment skills. Ideal candidates have undergone on-the-job training in audit firms or finance departments, gaining exposure to various auditing techniques and financial reporting standards. Training programs focusing on internal controls, risk assessment, and compliance are also valuable, equipping interns with the necessary tools to contribute effectively to audit projects. A blend of hands-on experience and formal training in relevant areas forms the foundation for a successful audit intern.

Certifications & Licenses: Audit Intern positions typically do not require specific certifications or licenses.

Audit Intern Skills

Financial Statement Analysis: Audit interns delve into balance sheets, income statements, and cash flow statements to gauge a company’s financial health and operational efficiency. They pinpoint discrepancies, potential fraud, or financial risk areas needing further investigation during audits.

Internal Controls Assessment: By evaluating a company’s operations, audit interns scrutinize financial and operational processes to identify risks and improvement opportunities. Their focus on detail and application of auditing standards ensures compliance and boosts business performance.

Risk Management: Audit interns play a significant role in identifying and assessing financial, operational, and compliance risks. Their proactive suggestions for internal controls and process enhancements help protect company assets and maintain the integrity of financial reports.

Regulatory Compliance: Ensuring an organization’s adherence to internal policies and external legal standards is a critical task for audit interns. Their detailed examination of financial records and operational procedures, combined with a deep understanding of the regulatory environment, aids in identifying and mitigating compliance risks.

Audit Software Proficiency: Proficiency in specialized tools such as ACL, IDEA, or QuickBooks allows audit interns to analyze financial data and spot discrepancies efficiently. This capability not only makes the audit process smoother but also increases the accuracy and reliability of audit findings.

Sampling Methodologies: Selecting a representative subset of data from larger datasets is a skill audit interns use to efficiently examine financial records. This approach helps identify potential risk areas without reviewing every transaction, optimizing the audit process and resource use.

Audit Intern Work Environment

An Audit Intern typically finds themselves in a structured office setting, surrounded by desks equipped with computers and the necessary software for data analysis and report generation. The workspace is designed for focus, with individual areas for concentrated work and meeting rooms for collaborative efforts.

Work hours can extend beyond the typical nine-to-five during peak audit seasons, requiring flexibility and sometimes weekend work. The dress code leans towards business casual, reflecting a professional atmosphere.

The culture fosters learning, with senior auditors often mentoring interns, providing a rich environment for professional development. Interaction with team members and clients is frequent, necessitating good communication skills and a level of emotional intelligence to navigate the varied dynamics.

Health and safety protocols are observed, with ergonomic workstations to prevent strain. The pace can be fast, especially close to deadlines, requiring efficient time management. Travel may be part of the role, visiting client sites for audits. Technology plays a central role, with ongoing training to stay updated on the latest audit software and tools.

Advancement Prospects

An Audit Intern, embarking on their career journey, has a clear trajectory towards becoming an Audit Associate, with potential growth into a Senior Auditor role. This progression typically involves gaining hands-on experience through diverse audit assignments, showcasing analytical prowess, and understanding complex financial regulations.

To ascend in this path, mastering the intricacies of financial statements and developing a keen eye for detail are crucial. Demonstrating leadership qualities and the ability to manage client relationships effectively can further accelerate career advancement, opening doors to roles such as Audit Manager or even Partner in a firm.

Specializing in a particular industry, such as finance, healthcare, or technology, can also enhance an auditor’s career prospects, positioning them as subject matter experts and paving the way for consultancy opportunities within their field of expertise.