A Guideline To Become A Tax Auditor
A professional whose responsibility is to evaluate the financial records to analyze whether the records comply with all the applicable laws is ‘tax auditor’. All the tax auditors use the accounting principles while performing their duty. They check whether the individuals, companies, organizations, and agencies obey the federal or state tax laws.
Key Responsibilities
Following duties are performed by the tax auditors:
- Evaluate the accounting systems analyze the tax control units to minimize taxes.
- Conducting internal audits to make sure the compliance with the tax regulations.
- Training staff on tax procedures and regulations.
- Maintain and manage all tax documents required.
- Assist companies to audits and file tax.
- Preparation of tax audit reports.
- Offering recommendations on proper reporting and tax filing.
Types of Tax Auditors
Tax auditors are either external, internal, or government auditors. External auditors are neutral third parties who help the clients to file tax forms and educate the company employees on tax advantages. Internal auditor’s job is to perform accounting functions and conduct the audit of the company. They help to detect tax errors, fraud identification, or mismanagement of the funds. Government auditors conduct audits for the companies, specifically those who are suspected of fraud or tax evasion. Government auditors are hired by IRS (Internal Revenue Services).
Pursuing Tax Auditor Career
Anyone who wants to choose the career of tax auditor must have a bachelor’s degree in the accounting course. Student gets the opportunity to learn various accounting related topics including auditing, fraud detection, and tax laws. With graduation in associate degrees, one can the get entry-level jobs under the directions of the licensed and experienced auditor.
In addition to the accounting degree, it is required by the federal government to have a CPA certification for tax auditors. State board of accountancy administers the CPA exam. To qualify for the CPA exam, at least a degree is needed by the aspirants. However, in some states, work experience is allowed as a substitute for the academic requirement. In order to maintain the CPA credential, those accountants who hold certification must continue the education. Learn more about the CPA exam at The CPA Exam Guy.
Getting Started
Starting a career as an auditor, an extensive work experience is required, preferably 2-3 years. One can apply for positions in government agencies at entry-level like IRS and in private audit consulting firms. Many companies hire accountants for the position of internal auditor. Apart from work experience, certain skills are acquired to enable the auditor to improve the career prospects and work effectively. A tax auditor should be a critical thinker and capable of applying logic while analyzing the financial reports. Having integrity, good mathematical skills and can effectively communicate with the employees and stakeholders.
Employment Outlook
A good prospect of employment should be expected in the future for aspiring auditors. According to the Bureau of Labor and Statistics (BLS) employment rate of the auditors will increase from 2016-2026 by 10%. BLS expects that the growth in the employment ties closely to the country’s favorable economic environment. Many firms will need the auditors to prepare tax reports and verify the tax compliance.
