Question

Recent landscape changes in accounting and auditing developed from corporate fraud and, arguably, auditor failure. In order to continually lead and adapt to the dynamics of regulation, principles based accounting practices and auditing standards, what types of skills and traits are auditors required to possess?

Answer 1

1. Impressive organisation skills: Audit managers are notorious for having to multi task, often reporting in to several different departments at any time, and working within clearly defined (often tight!) auditing project timelines. As a risk and compliance superstar, you should be able to develop clear goals of what is required within your audit work, as well as the expertise to fulfil these obligations.
   
2. A thirst for knowledge: No matter where your jobs in audit may take you, you must always strive to cultivate a deep knowledge of your company including its culture, key players and competitive environment. It is this key factor that is guaranteed to set you apart from other auditing and risk compliance professionals. Knowing the inner workings of your organisation, having an in-depth understanding of what is driving its success, and a keen enthusiasm for staying abreast of auditing industry trends is what could make the difference between remaining a junior auditor, or audit manager, to one day crossing over to that sought-after partner title.
   
3. A natural affinity and passion for problem solving: Risk management jobs require precision thinking, accurate reporting and statistical analysis to ensure the integrity of the auditing process. Additionally, a highly successful internal auditor should have business acumen and the ability to exercise sound judgement on the next course of action for the business to take once the audit has been delivered.
   
4. Communication/People skills: It’s one thing to be good with numbers and know how to compile impressive SMSF audits or analytical risk and compliance reports – it’s an entirely different skill to effectively communicate the essence of those findings during a meeting when presenting to senior auditing professionals or a partner with Big4 firm. The ability to read people and adapt to any given situation is a strong driver in those who progress up the internal or external auditing career ladder quickly.
   
5. Innovation: Every organisation has its own inner workings and to be a successful auditing manager or compliance officer requires creativity. Combine innovation with current business processes to yield impressive results. Using audit software and continually up skilling your data analysis experience with cutting edge audit techniques will ensure that you are able to solve business problems within the organisation that no-one else can master. Become an integrated auditor whose combination of IT and business audit skills will provide the backbone for a unique and prosperous auditing career.

As an auditor gains experience in working with nu­merous clients in multiple industries, a good auditors gains the ability to instinctively understand what the client’s busi­ness is all about. While carrying out the audit, s/he is able to determine a picture of any issues at the business and to translate them into what they might mean in the future.

1. There is an anonymous quote that states that “in­stinct is the nose of the mind.” The good auditor does not settle when a client’s answer or transaction doesn’t seem right. Instinct causes him or her to dig deeper to arrive at a conclusion that fits with the vision of the business. To develop instinct and vision, the auditor must develop an inquiring mind and strive to learn from all experiences en­countered in client situations throughout his or her career.

1. Auditors need to be able to understand the client’s business and industry. This requires the ability to quickly frame a picture of the client’s business, the organization and key attributes within it. A good auditor is able to sort out connections and linkages within the organization to focus the audit approach. The ability to see this big picture is very important to the planning stages of the audit. Putting the audit plan together requires an appreciation and an under­standing of the organization and what constitutes a logical approach to the audit.

1. The characteristics of a good auditor start with the basics of sound technical ability and solid ethical founda­tion. A good auditor considers those as baseline and work to grow beyond the “rules and regulations” mindset of our profession. Attaining and maintaining the characteristics mentioned in this article require a personal commitment but are crucial to the auditor’s long term success.

1. Even as they face evolving demands, opportunities for audit and accounting professionals remain robust. In fact, most chief financial officers tell us that talent shortages are severe, including in professional and financial services. It’s not just about having the right qualifications – these are the skills that hiring managers want.

Risk and compliance expertise

Facing greater regulatory demands, businesses are looking for candidates with advanced knowledge of risk model validation methods, regulatory compliance, and mergers and acquisitions.

Compliance work is challenging, and the required skill sets run deep. Not only do you need to be detail-oriented, with the ability to analyze large data sets, but you must maintain a high level of integrity to make sure the company adheres to all regulatory rules.

Expertise in forensic accounting, statistical data mining and risk management is highly valued as companies seek specialists in various types of regulations, including know your customer (KYC) and Comprehensive Capital Analysis and Review (CCAR); business risk assessment oversight, such as anti-money laundering (AML); and the Financial Industry Regulatory Authority (FINRA), which regulates broker-dealers and monitors trading on U.S. stock markets.

Companies still have some time before they must adopt the new standard for revenue recognition brought forth by the Financial Accounting Standards Board and the International Accounting Standards Board. But as they look ahead to the diagnostic work that will be required to make the transition, they need professionals who can help with systems, controls, processes and policies.

2. IT savvy

Accountants and auditors have access to more and more sophisticated tools for business intelligence and data analysis. But staying current with technology is the greatest pressure facing accounting and finance teams, according to CFOs in a Robert Half survey.

When building their teams, managers commonly see a technical skills gap in financial analysis, enterprise resource-planning systems and advanced modeling techniques.

They need financial staff who have expertise in Excel and business intelligence software. For analyst and financial reporting roles, knowledge of performance management software Hyperion is a plus. Those working with small and midsize firms are expected to know QuickBooks.

3. Interpersonal skills

Beyond analytical skills and the ability to keep up to date with business activities and revenue streams, soft skills are among the attributes needed to succeed. Nearly all postings for financial positions list some sort of interpersonal skills, such as planning and organizational abilities, the ability to work well in teams and independently, and the capacity to work under pressure.

Accounting and audit professionals regularly interact with different departments and employees at all levels. As a result, companies need professionals with written and verbal communication abilities, project management skills and a collaborative approach.