16 External Auditor Skills for Your Career and Resume

External auditors are responsible for providing an objective opinion on an organization’s financial statements. They use their skills to assess risk, evaluate internal controls and test financial statements for accuracy. If you’re interested in becoming an external auditor, it’s important to understand the skills that are necessary for the job.

Financial Statements

Financial statements are the records of a company’s financial status, including their assets, liabilities and equity. Auditors use these documents to evaluate whether a company is solvent and has accurate information about its finances. Financial statement reading skills allow auditors to interpret complex data and determine if it accurately represents the company’s financial situation.

Attention to Detail

Attention to detail is the ability to notice and understand small details. As an external auditor, you may need to examine a large amount of information about a company’s finances. Having attention to detail can help you identify any irregularities in their records or transactions that could indicate fraudulent activity. It also allows you to ensure all your observations are accurate and complete.

Problem Solving

Problem solving is the ability to identify and resolve issues. As an external auditor, you may encounter challenges while reviewing a company’s financial records. For example, if you notice that some of the information in the records doesn’t match up, you might need to find out why this happened and how it can be resolved.

Flexibility

Flexibility is the ability to adapt to changing circumstances. External auditors often work with clients who have unique needs and requirements, so flexibility can help you succeed in this role. For example, if a client requests additional services from you, it’s important that you’re able to adjust your schedule accordingly. Flexibility also allows you to be open to new ideas and methods of working, which can help you stay relevant in an ever-changing industry.

Audit Testing

Auditors use audit testing to evaluate the effectiveness of controls and procedures. Auditing standards require auditors to test a sample of transactions, such as reviewing a random selection of invoices or examining a small portion of an organization’s financial records. Auditors then assess whether the company followed its own internal policies and procedures. This process helps auditors determine if the company is following accepted accounting practices and if it has effective internal controls.

SOX Compliance

SOX compliance refers to the set of regulations that companies must follow when they issue securities. Auditors with SOX compliance skills are able to identify and explain any potential risks a company may have regarding their financial records. This is important because it can help ensure that investors make informed decisions about where to invest their money.

Internal Controls

Internal controls are the rules and regulations that an organization uses to ensure its financial records are accurate. Auditors use their knowledge of internal controls to determine whether a company’s records are reliable. For example, if a company has strict policies about approving expenses, an auditor can be more confident in the accuracy of the company’s financial statements.

Audit Reporting

Auditors use audit reports to communicate their findings and recommendations. Auditors may prepare a written report or present their information verbally in an executive meeting. Regardless of the format, it’s important for auditors to clearly explain their conclusions and provide evidence to support them. Auditing standards vary by industry, so it’s also important for external auditors to understand how their clients interpret their reports.

Communication

Communication is the ability to convey information in a way that others can understand. Auditors use communication skills when they present their findings and recommendations to clients. Auditors also communicate with other team members, such as accountants or financial analysts, who may have different perspectives on the same data. Effective communication ensures everyone understands each other’s roles and responsibilities.

Data Analytics

Data analytics is the ability to interpret large amounts of data and find trends or anomalies. External auditors use this skill when reviewing a company’s financial records, as they may need to analyze thousands of pages of documents. Data analytics also helps auditors identify any potential risks that could affect a company’s finances. For example, if an auditor notices that a company has consistently overspent their budget in certain areas, they can investigate further to determine whether there are underlying issues with the company’s accounting practices.

Analytical Skills

Analytical skills are the ability to examine data and information, identify patterns and trends and make logical conclusions. External auditors use analytical skills when reviewing financial records, analyzing data and making recommendations for improvement. Auditors also use analytical skills when evaluating whether a company’s internal controls are effective at detecting errors or irregularities in their accounting processes.

Audit Planning

Auditors use audit planning skills to create an audit plan that outlines the procedures they need to follow and the information they need to gather. Auditors with strong planning skills can ensure their audits are thorough, which helps them make more accurate conclusions about a company’s financial records. Auditing standards often outline the types of information auditors should review during an audit, so having knowledge of these standards can help you develop an effective audit plan.

Communication Skills

Communication skills are necessary for external auditors to convey their findings and recommendations to the company they’re working with. Auditors must be able to clearly explain complex financial information in a way that non-financial professionals can understand. They also need to communicate effectively with other employees at the organization so they can get the information they need to complete their audit.

Auditing Standards

Auditing standards are the rules and regulations that an external auditor follows when conducting a financial audit. Auditors must be familiar with these standards to ensure they conduct audits in a consistent manner. Auditing standards include laws, regulations and industry guidelines that dictate how auditors should perform their duties. For example, if an auditor is examining a company’s financial records for compliance with federal securities law, they would use the Securities Exchange Commission’s (SEC) set of auditing standards as their guide.

Organization

Organization is the ability to keep track of multiple tasks and files. Auditors often have many documents they need to review, so it’s important for them to be organized. This skill can help you stay on task and complete your work efficiently. Organization also includes keeping track of all the information you receive during an audit, including emails, contracts and other records.

Risk Assessment

Risk assessment is the ability to identify potential risks and weaknesses in a system or process. Auditors use this skill when evaluating an organization’s controls, which are the mechanisms that ensure accuracy and security of data. Auditors with strong risk assessment skills can more accurately evaluate an organization’s vulnerabilities and make suggestions for improvement.

How Can I Learn These External Auditor Skills?

There are a few ways that you can learn the external auditor skills that are listed above. One way would be to find a course or program that offers training in these specific skills. Another way would be to find a book or other resource that covers these topics in detail. Finally, you could also try to find a mentor or other experienced professional who could help you to learn these skills.