An audit manager is in charge of overseeing the overall audit process of an organisation including controls, processes and practices. These professionals make recommendations on policies and ensure that auditors follow the rules and regulations set by the organisation. What does an audit manager do?
What is auditing?
Auditing is defined as the act of examining a clients or a business’s reports and accounts in order to ensure accuracy and compliance. Audits can be conducted internally by the company itself or externally through a third-party.
Auditing is crucial in helping businesses understand more about their policies and procedures and can provide shareholders with the confidence that all accounts and reports are true and fair.
There are lots of different types of audits that a business can conduct, such as:
- Financial audit
- Compliance audit
- Operational audit
- Payroll audit
- Performance audit, and more.
What is the hierarchy of auditing positions?
The hierarchy of auditing positions typically includes:
- A staff or an assistant auditor – these auditors are in charge of performing fieldwork tasks related to audits and ensuring that all processes are in accordance with established audit schedules and compliant with policies and regulations
- Senior or IT auditor – these auditors are in charge examining internal processes and structures and analysing them for optimization potential. They serve as a communicative link between all departments and the management level.
- Audit managers – these professionals supervise auditors and make sure the auditors follow the rules and regulations set by the organisation
- Audit partners, audit directors or Chief Audit Executives (CAE) – professionals in this role occupy the highest position in the auditing hierarchy and bear full responsibility for the results of audits and company performance
According to statistics from Franklin University, a large percentage of audit managers (24.4%) were found working in the Accounting, Tax Preparation, Bookkeeping, and Payroll Services sector in 2022.
Responsibilities of an Audit Manager
Audit managers are responsible for supervising the actions and practices of auditors in a team and managing audits according to plans. They develop and implement policies and procedures and manage projects profitably by leading the team to perform efficiently.
These managers supervise and conduct independent audits and oversee and direct the budgeting, planning and coordination of engagements in accordance with client requirements.
They also create presentations to be shown to the Audit Committee and investigate and determine causes and irregularities, if any.
What are the responsibilities of an audit manager?
- Supervise the actions and practices of auditors
- Manage audits according to plans
- Develop and implement policies and procedures
- Identify business process risks
- Manage projects profitably by leading the team to perform efficiently
- Supervise and conduct independent audits
- Oversee and direct the budgeting, planning and coordination of engagements
- Create presentations to be shown to the Audit Committee
- Investigate and determine causes and irregularities
- Delegate work overflow to subordinate staff
- Draft recommendations on corrective measures
- Plan and allocate resources and auditors in accordance with skills and schedules
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Skills of an Audit Manager
Audit managers have excellent computational skills and experience with audit methodologies and techniques.
They have solid knowledge of regulations and guidelines and a good understanding of Generally Accepted Accounting Principles (GAAP) principles. They also have a record of success in internal and external audits.
Additionally, audit managers have excellent written and verbal communications skills as well as the ability and passion to solve a problem. They also have excellent interpersonal and organisational skills.
What skills do audit managers have?
- Excellent computational skills
- Experience with audit methodologies and techniques
- Solid knowledge of regulations and guidelines
- Good understanding of GAAP principles
- Knowledge and understanding of internal and external audit processes
- Excellent written and verbal communications skills
- Ability and passion to solve problems
- Excellent interpersonal skills
- Extraordinary organisational skills
- Ability to manage time
- Ability to build relationships while asking tough questions
- A sharp eye for details for accuracy
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Background and education
An audit manager has to have a Bachelor’s degree in Accounting, Finance, Business administration or something related.
Companies that offer high-paying roles also expect managers to have a Master’s degree or an advanced professional certification like certified public account (CPA), certified internal auditor (CIA), or certified information systems auditor (CISA).
The actual certification(s) needed will depend on the position the audit manager will hold in an organisation.
There are also courses that one can take to improve their skills and increase their knowledge and know-how. Find examples of such courses for these down below:
- Internal Audit: A Guide for Management
- Fundamentals of US GAAP Accounting
- Modern Internal Audit Leadership
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Salary of an Audit Manager
An audit manager earns approximately $136,800 per year on average in the US. On the higher end, these managers can earn around $169,600 whereas on the lower end they can earn around $107,800 per year.
In Germany, audit managers can make around €77,000 – €112,000 whereas in the UK they can make around £55,000 – £76,000 per year.
How much do audit managers make?
| US | $107,800 – $169,600 |
| Germany | €77,000 – €112,000 |
| UK | £55,000 – £76,000 |
How much do freelance audit managers make?
Audit Managers on freelancermap charge on average:
Rates in the Audit Management industry range between $40 and $96/hour for most freelancers.
The daily rate for Audit Managers (8 working hours) would be around:
Audit Manager Job Description
Auditing is a crucial aspect for business growth. If you’re in need of an expert who can look after the overall audit strategy and manage auditors in your company, here’s a useful job description template that will help you find the perfect manager:
We are looking for an audit manager to oversee internal audits and to make sure that auditors follow the rules and regulations set by our organisation.
Responsibilities:
– Supervise the actions and practices of auditors
– Manage audits according to plans
– Develop and implement policies and procedures
– Identify business process risks
– Manage projects profitably by leading the team to perform efficiently
– Supervise and conduct independent audits
– Oversee and direct the budgeting, planning and coordination of engagements
Skills:
– Excellent computational skills
– Experience with audit methodologies and techniques
– Solid knowledge of regulations and guidelines
– Good understanding of GAAP principles
– Knowledge and understanding of internal and external audit processes
– Excellent written and verbal communications skills
– Ability and passion to solve problems
