Auditor vs. Chartered Accountant: What Are the Differences?

Both auditors and chartered accountants are responsible for financial reporting within organizations. If you’re interested in pursuing a career in accounting, you may be wondering which role is right for you. In this article, we compare and contrast the job titles auditor and chartered accountant, discussing the similarities and differences between the two. We also provide an overview of the education and skills required for each position.

What is an Auditor?

Auditors are responsible for ensuring that an organization’s financial statements are accurate and comply with generally accepted accounting principles. They analyze an organization’s financial records to identify any discrepancies or areas of improvement. Auditors also review internal controls to ensure that they are effective in preventing and detecting errors or fraud. They may make recommendations to improve the organization’s financial reporting processes. Some auditors also provide tax consulting and planning services.

What is a Chartered Accountant?

Chartered Accountants are responsible for providing financial and tax advice to individuals and organizations. They work with clients to prepare and examine financial records, ensuring that they are accurate and compliant with relevant laws and regulations. Chartered Accountants also develop and maintain financial systems and controls, and offer recommendations on how to improve efficiency and effectiveness. In addition, they may provide auditing services to confirm that an organization’s financial statements are accurate and free from fraud.

Auditor vs. Chartered Accountant

Here are the main differences between an auditor and a chartered accountant.

Job Duties

Both auditors and chartered accountants perform a variety of job duties. However, the specific tasks they carry out depend on their profession and the industry in which they work. For example, an auditor may conduct physical audits of a business’ operations or review financial records to determine whether a company violated any federal regulations. A chartered accountant, however, typically performs accounting functions for organizations. They may provide bookkeeping services or assist with tax filing.

Job Requirements

Auditors and chartered accountants typically need to have a bachelor’s degree in accounting, finance or another related field. Some employers may prefer candidates who have a master’s degree as well. In addition, both auditors and chartered accountants must be licensed by the state they plan to practice in. To become licensed, professionals must pass an exam administered by the American Institute of Certified Public Accountants (AICPA).

Work Environment

Auditors typically work in an office setting, but they may travel to meet with clients and attend meetings. They also spend time working on their own, completing audits independently. Chartered accountants usually work in an office environment as well, but they often have more interaction with clients than auditors do. They may travel for business purposes or to meet with clients.

Skills

Both auditors and chartered accountants need to have excellent analytical skills. They use these skills to examine financial statements, identify discrepancies and errors and make recommendations for improvements. They also both need to be detail-oriented to ensure accuracy in their work.

Auditors typically need to have strong research skills as they often need to look up information about accounting standards, best practices and industry trends. They also may need to interview employees and review company policies and procedures. Chartered accountants usually do not need to conduct as much research as auditors because they typically work with clients who already are following established accounting principles.

While auditors need to have strong writing skills to prepare reports detailing their findings, chartered accountants need to have strong communication skills to explain complex financial concepts to clients. Both of these professionals also need to be able to work independently and meet deadlines.

Salary

The average salary for an auditor is $66,671 per year, while the average salary for a chartered accountant is $87,261 per year. Both of these salaries can vary depending on the size of the company, the location of the job and the level of experience the professional has.