What Does an Audit Manager Do?

The role of an audit manager is one that requires a great deal of leadership and management skills. They are responsible for overseeing the work of auditors, ensuring that they complete their assignments in a timely manner and meet all relevant deadlines.

Audit managers also commonly provide guidance and feedback to their team members on how best to conduct audits and interpret findings. This may include providing training or coaching on specific techniques or methods used by the organization.

Audit Manager Job Duties

Audit managers typically have a wide range of responsibilities, which can include:

• Conducting risk assessments to identify potential financial losses due to fraud or mismanagement of assets
• Communicating with internal parties such as human resources, accounting, IT, and security teams to ensure that audits are performed efficiently
• Preparing reports that detail findings and recommendations for improvement, which may include possible legal action if fraud is suspected
• Reviewing financial records, statements, and other documents to ensure compliance with laws and regulations
• Preparing budgets, forecasts, and projections to aid in planning future business activities
• Coordinating with external parties such as lawyers, accountants, auditors, lenders, investors, or regulators
• Conducting interviews with employees to obtain information about their jobs and their role in any issues identified during the audit process
• Reviewing financial records to ensure that they are accurate and comply with applicable laws and regulations
• Developing audit plans based on risk assessments and results from previous audits Duties vary depending on the size and type of business being audited as well as the requirements of regulatory agencies such as the IRS or SEC

Audit Manager Salary & Outlook

Audit manager salaries vary depending on their level of education, years of experience, and the size and industry of the company. They may also earn additional compensation in the form of bonuses.

• Median Annual Salary: $116,500 ($56.01/hour)
• Top 10% Annual Salary: $143,000 ($68.75/hour)

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

Demand for audit services will depend on the demand for financial services and products. As companies continue to expand globally, they will need auditors to ensure that their internal controls are effective and that they are adhering to regulations in the countries where they do business.

Related: 25 Audit Manager Interview Questions and Answers

Audit Manager Job Requirements

To become an audit manager, one typically needs:

Education: Most employers require audit managers to have a bachelor’s degree in accounting, finance or another closely related field. Some employers prefer to hire candidates who have a master’s degree in accounting or business administration with a concentration in accounting. Relevant coursework includes accounting, auditing, business law, economics, finance, management and statistics.

Training & Experience: Many employers will require candidates to have at least five years of experience in auditing. Some employers may prefer candidates to have at least 10 years of experience. Auditing managers can receive on-the-job training to learn the specific processes and procedures of the company.

Certifications & Licenses: Certifications can provide an audit manager with additional skills that make them a more competitive candidate when seeking new employment or a promotion.

Audit Manager Skills

Audit managers need the following skills in order to be successful:

Communication: Communication is the act of conveying information to others. Audit managers often need to communicate with their team members, clients and other stakeholders. Effective communication can help you to convey information clearly and answer questions. It can also help you to build trust with others.

Leadership: Leadership skills can help you manage teams of auditors and ensure they complete their work on time. You can use your leadership skills to motivate your team, create a positive work environment and encourage them to perform their best. You can also use leadership skills to help your team work together and complete complex tasks.

Critical thinking: Critical thinking is the ability to analyze a situation and make a decision based on the information you have. As an audit manager, you may be responsible for making decisions about the audit process, including what information to gather, how to gather it and what to do with the information once you have it. Critical thinking can help you make the best decision for your company.

Problem-solving: Problem-solving skills allow you to identify issues, develop solutions and implement them. As an audit manager, you may be responsible for resolving issues that arise during an audit. Your problem-solving skills can help you find solutions quickly and efficiently.

Organization: Organization is the ability to keep track of multiple tasks and deadlines at once. Audit managers often have many responsibilities, including managing the team, preparing reports and overseeing the audit process. Having strong organizational skills can help you manage your workload and prioritize your responsibilities.

Audit Manager Work Environment

Audit managers work in a variety of settings, including corporate offices, government agencies, and accounting firms. They typically work a standard 40-hour week, although they may have to work longer hours during busy periods, such as at the end of the fiscal year. Audit managers typically work on teams of auditors, and they may travel to different locations to conduct audits. The work can be stressful, and audit managers must be able to handle deadlines and pressure.

Audit Manager Trends

Here are three trends influencing how audit managers work. Audit managers will need to stay up-to-date on these developments to keep their skills relevant and maintain a competitive advantage in the workplace.

The Need for a More Agile Audit Profession

The audit profession is evolving rapidly in response to the need for more agile and responsive auditors. This trend is being driven by the increasing demand for audit services from both public and private sector clients, who are looking for auditors that can provide faster and more comprehensive audits.

As a result, audit managers will need to be more agile and responsive in order to meet the needs of their clients. This requires a greater understanding of the latest technologies and methods for conducting audits, as well as a willingness to work in a more collaborative environment with other members of the audit team.

More Focus on Cybersecurity

As businesses become increasingly reliant on technology, the need for cybersecurity professionals has grown. This is because cyberattacks have become more sophisticated and are now able to target not only individual devices but also entire networks.

As a result, audit managers will need to focus on ensuring that their clients’ systems are secure. They will also need to be familiar with the latest trends in cybersecurity so that they can identify potential threats early on.

Greater Attention to Risk Management

Risk management is becoming an increasingly important area of focus for businesses across all industries. As risk management becomes more important, audit managers will need to develop skills in this area in order to ensure that their clients are properly protected.

In order to be successful in this field, audit managers will need to be able to identify and assess risks, as well as develop strategies to mitigate them. They will also need to be able to communicate effectively with business leaders about the importance of risk management and how it can help to protect the company from potential losses.

How to Become an Audit Manager

An audit manager career path can be a great way to advance your career in accounting. As an audit manager, you’ll have the opportunity to lead teams of auditors and help them perform their work effectively. You’ll also be responsible for managing the overall audit process, which includes planning, organizing, and directing the work of the team.

To become an audit manager, you’ll need to have at least five years of experience working as an auditor. You should also have strong leadership skills and be able to manage complex projects. Additionally, it’s important that you have a thorough understanding of accounting standards and regulations.

Advancement Prospects

Audit managers typically have several years of experience working in an accounting firm, and they may have earned their Certified Public Accountant (CPA) designation. To advance to an audit manager position, you will likely need to demonstrate strong leadership and management skills, as well as a deep understanding of accounting and auditing principles.

As an audit manager, you will be responsible for leading a team of auditors and ensuring that all work is completed accurately and in accordance with generally accepted accounting principles (GAAP). You will also be responsible for developing and implementing audit plans, as well as overseeing the work of junior staff. In some cases, you may also be responsible for training and mentoring junior staff.

Audit Manager Job Description Example

As Audit Manager at [CompanyX], you will be responsible for executing the annual audit plan, ensuring that all audits are conducted in a timely and efficient manner. You will also be responsible for managing a team of auditors, as well as developing and maintaining relationships with key stakeholders. In this role, you will report directly to the Chief Financial Officer.

The ideal candidate for this position will have a minimum of 5 years of experience in auditing, as well as experience managing a team. You will be a highly organized and detail-oriented individual with excellent communication and interpersonal skills. You must also be able to work independently and be able to meet deadlines.

Duties & Responsibilities

• Understand the client’s business and risk environment
• Identify and assess risks across the client’s organization
• Develop and execute audit plans to test controls in place to mitigate those risks
• Supervise, coach, and develop staff on projects
• Foster collaborative relationships with clients and build rapport with client management
• Communicate findings and recommendations to client management in both oral and written formats
• Manage multiple projects and tasks simultaneously while adhering to strict deadlines
• Understand and apply relevant laws, regulations, professional standards, and company policies
• Use analytical skills to draw conclusions from data and communicate those conclusions clearly
• Demonstrate excellent verbal and written communication skills
• Be highly organized and detail oriented
• Exhibit strong leadership qualities

Required Skills and Qualifications

• Bachelor’s degree in accounting, finance, or related field
• CPA certification required
• 10+ years experience in public accounting, with at least 5 years in an audit management role
• Thorough understanding of GAAP and auditing standards
• Proven supervisory and leadership skills
• Excellent verbal and written communication skills

Preferred Skills and Qualifications

• MBA or Master’s degree in accounting, taxation, or related field
• Experience working in a Big 4 accounting firm
• Knowledge of SEC reporting requirements
• Experience with IFRS
• Familiarity with data analysis software, such as ACL or IDEA