The Importance of Auditors in the Job Market

The Importance of Auditors in the Job Market

Length: 609 words (1.7 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
As more companies are being established in Indonesia, auditor has become one of the most demanded positions in the job market. Companies need auditors to examine financial reports and to help the companies in managing risks and securing their financial condition. According to a researcher at Economic Modeling Specialists International, Auditor is the second most demanded professions in most of the countries in the world (Berita Satu, 2012). Therefore, being an auditor is a good choice for those who want to have a promising career. There are two types of auditor profession, which are internal auditor and external auditor, and it is important to know the major differences between them to make the right decision of which auditor type that we prefer.
One way to distinguish between internal and external auditor is the scope of works. Internal auditors can only do auditing jobs inside the companies that employ them; they are companies’ internal people. Their job is to perform both financial and operational audits to study the risks in both areas as well as what has been and needs to be done to minimize those risks in order to achieve certain objectives of their companies. Meanwhile, external auditors’ job is to perform auditing works for other companies that hire their services, which means they do a lot of traveling. It is their main responsibility to examine and give opinions about the presentation of companies’ financial statements and to ensure the correct implementation of accounting principles and regulations. For example, internal auditors might concern on production and selling cost efficiency to maintain profit, while external auditors only judge whether the company can continue their business by examining its financial statements, without giving any advice of how to improve their financial performance.
Other differences are compensation and career advancement. In the first two to three years, the salary of an internal auditor could be 2 – 3 million rupiahs higher compared to an external auditor. However, for the rest of their working period, external auditor will earn more than internal auditor will since external auditor will receive bonuses in addition to their salary (Jurnal Akuntansi Keuangan, 2012). Besides that, internal auditor can only advance their career to the level of Chief Audit Executive, which is below the CEO, because they reside in the company; meanwhile, external auditor can advance their career to become the owner of auditing firm, especially because they travel a lot resulting in their vast networks.

How to Cite this Page

MLA Citation:
"The Importance of Auditors in the Job Market." 123HelpMe.com. 23 Apr 2019
    <https://www.123helpme.com/view.asp?id=311696>.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Importance of External Auditors

- The aim of this essay is to study the function of external auditors in order to analyze why it is important to be independent. The primary mission of external auditors is to review and evaluate all the financial records of a company or corporation. They provide an objective opinion on the organization’s financial statement and effectiveness of the accounting polices in order to help management to make decisions. If the independence of the external auditors is impaired, the public will doubt the quality of professional auditing services, and the consequence would be very serious, just like the bankruptcy of Enron led to the disorganization of Arthur Andersen, once a giant accounting company i...   [tags: business]

Research Papers
1117 words (3.2 pages)

Benefits Of Retention Strategies For The Job Market Essay

- The job market can be a confusing place when taken at face value, there are plenty of available jobs, but there are not many people to fill those jobs. How can unemployment be so high when there are so many jobs that are just waiting for someone to apply. The truth is that while the job market might seem like you can have any position you can think of, most people just aren’t qualified for them. There are many jobs that require little to no skill to obtain and usually do not provide enough money to live well from....   [tags: Employment, Job satisfaction, Company, Pfizer]

Research Papers
1161 words (3.3 pages)

Legal Regulation of Corporate Governance in the Role of Auditors Essay

- INTRODUCTION In recent years, general public start to raise questions about the level of audit independence and the quality of audit information, especially after corporate collapses such as HIH, Enron and One.Tel where independent audit reports showed that the companies were making a profit, when in fact they were heavily in debt. This essay is to provide a brief overview of the current regulation of corporate governance in Australia in the role of auditors, and illustrate some gaps in the regulation with examples....   [tags: corporate governance, auditor regulation]

Research Papers
1966 words (5.6 pages)

The Importance of Market Research Essay

- The Importance of Market Research This paper will examine the steps of Marketing Research and the role that it plays in the marketing mix of product, place, price and promotion. The marketing mix is guided by marketing strategy made up of factors that are under company control and collected into four groups of variables known as the four P’s: product, place, price, and promotion (Kerin, R.A., Hartley, S.W., Berkowitz, E.N., & Rudelius, W., 2009). The organization selected for this examination will be the current company with which I am employed, Apartment Management Consultants (AMC)....   [tags: Market Research ]

Research Papers
925 words (2.6 pages)

The Importance Of Job Satisfaction Is A Growing Concern For Today 's Employers

- The importance of job satisfaction is a growing concern for today’s employers. The number of articles about this topic was overwhelming when completed through the Jerry Falwell online library. In one particular article, the researchers identify that the concern is not simply because the employees are unhappy but because the employers may be “leaving money on the table”. (Pfeffer, 2007). As such, it is evident that this topic is multifaceted and relevant. Job dissatisfaction has become an increasingly prevalent topic for those in the job market, especially those who have obtained higher education....   [tags: Job satisfaction, Employment, Psychology]

Research Papers
723 words (2.1 pages)

The Importance of Market Research: The Marriott Company Essay

- The Importance of Market Research: The Marriott Company The Marriott Company is a successful lodging and hospitality company. It is a company that is internationally recognized and has nearly 3,700 properties, 18 brands in 72 countries and territories worldwide (Marriott, 2012). With such success and worldwide prominence, it is no mistake that it operates with a winning formula that includes market research. "Our relentless focus on innovation and action fuel the way we do business" (Marriott, 2012)....   [tags: Market Research ]

Research Papers
988 words (2.8 pages)

Job Application Letter and Resume Essay

- To, The General Manager, Accounts Department, , United States of America Respected Sir, Subject: Post of Senior Auditor I am writing in response to your advertisement, to present my credentials for the job available for senior auditor, as this is the field in which I feel I am extremely well qualified. As far as my academic record is concerned, I am a talented auditor and have accomplished many awards throughout my academic career. I have excellent communication and research skills and I am acquainted with the fast paced working environment where the time limit is the priority and managing collective jobs contemporaneously is the necessity....   [tags: Auditor, Job Experience, Education]

Research Papers
544 words (1.6 pages)

Essay on The Importance of Receiving a Higher Education

- Like many veterans before me, it seems as if time flies by quicker than we expect. Twenty years ago, I felt there was no reason to concern myself with the immediate future because I had decided my career was going to be with the armed forces. The educational requisite to enlist, back then, was a high school diploma or general education diploma. In some cases, one could enlist with a waiver in the absence of either one. I was fortunate enough to have a high school diploma when I enlisted. Therefore, my concern with higher education was non-existent and I felt no obligation to pursue a college degree....   [tags: Benefits, Job Market]

Research Papers
858 words (2.5 pages)

Essay on Corporation Internal Auditors

- Internal auditors should work closely with the audit committee to establish the audit department's responsibilities, and the board and management should support those duties. However, internal audit processes can sometimes be ignored by the top management, who may chose to focus time and resources on areas they deem to be more pressing to bottom lines. It is the responsibility of the internal auditor to put proper control measures. (Metricstream, n.d) Independence Independence is the freedom from conditions that threaten the ability of the internal audit activity to carry out internal audit responsibilities in an unbiased manner....   [tags: Relevance, Plan, Outsourcing]

Research Papers
1180 words (3.4 pages)

Essay on MANDATORY ROTATION OF AUDITORS

- Abstract In light of a number of high-profile corporate failures during the first half of 2001, a number of studies have been performed to address the impact of mandatory rotation of audit firms to ensure the appropriate level of ‘independence’ of auditors. Majority of studies conclude that the detrimental effects of firm rotation on the quality of the audit work by far outweigh its positive effects as a safeguard against various independence and quality threats. Frequent changes of audit firms, whether resulting from mandatory rotation or otherwise, introduce threats to independence and operational difficulties that make audit failure more likely....   [tags: essays research papers fc]

Research Papers
2297 words (6.6 pages)


Despite of those differences, there are certain similarities between internal auditor and external auditor.
Qualification is one obvious similarity between internal and external auditor. Both types of auditors must have bachelor degree in accounting or finance major, which means that to be an internal or external auditor, we must apply to the faculty of business in any university majoring in either finance or accounting. In addition, both positions are often required by companies to take professional certification exams, such as Certified Fraud Examiner (CFE) and Certified Public Accountant (CPA).
Final similarity is that both internal and external auditor must comply with the accounting regulation, which is Pernyataan Standar Akuntansi Keuangan (PSAK), in performing their auditing works. In giving advice for a company to increase their financial performance, an internal auditor must pay attention to the rules of PSAK. Same obligation also applies to an external auditor, who must follow the guidance in PSAK to give opinion on companies’ financial statements.
In summary, internal and external auditors have several differences and similarities. Both positions differ in scope of works, compensation and career advancement yet they are similar in the qualification requirements and the obligation to obey certain accounting regulations. After knowing the comparison between internal and external auditors, we can conclude that internal auditor is a suitable position for people who enjoy improving the internal system of a company, while external auditor is more suitable for people who wish to gain experiences and to build networks through examining various companies.



Works Cited

Association of Certified Fraud Examiner. (n.d.). Internal Auditor. Retrieved December 01, 2013, from ACFE: http://www.acfe.com/career-path-internal-auditor.aspx

Berita Satu. (2012, December 06). 18 Daftar Pekerjaan Paling Dicari pada Tahun 2013. Retrieved November 30, 2013, from Berita Satu: http://www.beritasatu.com/karier/86771-18-daftar-pekerjaan-paling-dicari-pada-tahun- 2013.html
Harahap, S. (2012, December 15). Perbedaan Audit Internal dengan Audit External . Retrieved November 30, 2013, from Auditable: http://auditable.blogspot.com/2012/12/perbedaan- audit-internal-dengan-audit.html#.UpsHJyfQSgZ
Jurnal Akuntansi Keuangan. (2012, June 05). Bimbingan Karir. Retrieved November 30, 2013, from Jurnal Akuntansi Keuangan: http://jurnalakuntansikeuangan.com/2012/06/5- pekerjaan-akuntansi-keuangan-bergaji-bagus-untuk-fresh-graduate/
Loughran, M. (n.d.). Type of Auditing Careers. Retrieved December 01, 2013, from Auditing for Dummies: http://www.dummies.com/how-to/content/types-of-auditing-careers.html
Manajemen Keuangan dan Akuntansi. (2012, December 4). Perbedaan Audit Internal dan Audit Eksternal . Retrieved November 30, 2013, from Manajemen Keuangan dan Akuntansi: http://manajemenkeuanganakuntansi.blogspot.com/2012/12/perbedaan-auditor-internal- dan-eksternal.html
Turnkey Consulting. (n.d.). What is the difference between internal audit and external audit? Retrieved November 29, 2013, from Turnkey Consulting: http://www.turnkeyconsulting.com/faq/what-is-the-difference-between-internal-audit- and-external-audit/
Wahyudi, I. (2013, June). Magister Akuntansi. Retrieved November 30, 2013, from Magister akuntansi: http://magisterakutansi.blogspot.com/2013/06/internal-audit.html


Return to 123HelpMe.com