Law Degrees: A Pathway To Auditing Careers?

Auditors are responsible for examining an organisation's financial records and ensuring compliance with the law. While a law degree is not a prerequisite for a career in auditing, a strong understanding of the law is beneficial. Auditors typically hold a bachelor's degree in accounting, business, finance, or a related field. They may also pursue graduate degrees and certifications to advance their careers and specialise in specific areas of auditing. A law degree can provide a solid foundation for understanding regulatory and compliance issues, enhancing an auditor's ability to ensure legal compliance.

Law degrees are not required to become an auditor

A law degree is not required to become an auditor. Auditors are business professionals who ensure that financial statements are accurate and comply with corporate and legal guidelines. While a law degree may provide some relevant knowledge, such as an understanding of regulatory compliance and legal frameworks, it is not necessary for a career in auditing.

The standard educational path to becoming an auditor typically involves a bachelor's degree in accounting, finance, or a related field. This provides a comprehensive understanding of accounting principles, financial reporting, taxation, and auditing standards. A degree in accounting offers extensive training in financial reporting, taxation, and auditing standards, while a degree in finance provides a strong grasp of financial markets and corporate finance. Other common degree subjects for auditors include business administration, information systems or information technology, and economics. These degrees provide a broad perspective on business operations, management, and data integrity, all of which are valuable in the field of auditing.

While a graduate degree is not required, some auditors choose to pursue a master's program in accounting or business administration to gain advanced training and improve their career prospects. A master's degree can also provide a route to CPA (Certified Public Accountant) licensure, which is often required for external auditors and those working for publicly traded companies.

In addition to academic qualifications, auditors may also benefit from gaining practical experience through internships, entry-level positions, or other relevant work experience. This can provide valuable hands-on training and help build a professional network in the industry.

While a law degree may offer some transferable skills and knowledge, it is not a prerequisite for a career in auditing. Auditors primarily need strong analytical, mathematical, and communication skills, along with an attention to detail and an understanding of financial systems and regulatory compliance. These competencies can be developed through a range of educational and professional pathways, allowing individuals to become successful auditors without a law degree.

Auditors need a bachelor's degree in accounting, finance, or a related field

Auditors are responsible for examining an organisation's financial records, ensuring compliance with the law, and identifying any errors or fraud. To become an auditor, a bachelor's degree in accounting, finance, or a related field is required. This educational background provides a comprehensive understanding of accounting principles, business practices, and regulatory standards, which are crucial for auditing.

Accounting Degree

A degree in accounting is the most direct and common path for aspiring auditors. It offers extensive training in financial reporting, taxation, and auditing standards. This background equips auditors with the skills to scrutinise financial statements, ensure compliance with accounting principles, and identify discrepancies or fraud.

Finance Degree

A finance degree gives auditors a strong grasp of financial markets, corporate finance, and investment analysis. This background enables them to assess an organisation's financial health, analyse investment activities, and contribute to financial planning and decision-making.

Business Administration Degree

A business administration degree provides auditors with a broad perspective on business operations and management. This degree often includes coursework in accounting, finance, and management, resulting in a well-rounded skill set applicable to various auditing contexts. Auditors with this degree can effectively evaluate business processes and internal controls.

Information Systems or Information Technology Degree

As businesses increasingly rely on complex information systems, a degree in information systems or information technology is becoming more relevant for auditors. These professionals specialise in auditing IT systems, ensuring data integrity, and assessing the adequacy of electronic data processing controls. They play a critical role in protecting against cyber threats and ensuring compliance with data protection regulations.

Economics Degree

A degree in economics provides auditors with analytical skills and an understanding of economic theories and models. This background is useful for analysing market trends, economic indicators, and the broader economic environment in which organisations operate. It is particularly beneficial for conducting performance audits and providing insights into economic efficiency.

Other Paths

While a bachelor's degree is the standard requirement, alternative pathways exist. Equivalent professional experience, certifications like the Certified Internal Auditor (CIA) or Certified Public Accountant (CPA), and demonstrable skills in analytical thinking and attention to detail can also be accepted by some employers. Auditors may also have backgrounds in economics, statistics, or information technology, reflecting the diverse skill set needed in the profession.

Auditors can gain certifications to improve their career prospects

Auditors are responsible for controlling, verifying, and certifying an organisation's transactions, resources, and financial reports. They need at least a bachelor's degree in an accounting-related field, and often pursue graduate degrees and certifications to improve their career prospects.

Certified Internal Auditor (CIA)

The Certified Internal Auditor (CIA) is the standard credential for internal auditors. It is a global certification that demonstrates proficiency and professionalism in internal auditing. The CIA is granted by the Institute of Internal Auditors (IIA) and focuses on internal audit standards, risk assessment, control processes, and governance.

Certified Public Accountant (CPA)

The Certified Public Accountant (CPA) certification is administered by the American Institute of Certified Public Accountants (AICPA). It is a prestigious credential for accounting professionals, demonstrating expertise in financial auditing, tax, regulatory compliance, and management accounting. CPAs are well-equipped to work as external auditors.

Certified Information Systems Auditor (CISA)

The Certified Information Systems Auditor (CISA) is a globally recognised certification offered by the Information Systems Audit and Control Association (ISACA). It validates expertise in information systems auditing, control, and security. The CISA is ideal for IT auditors, audit managers, and security professionals.

Certified Fraud Examiner (CFE)

The Certified Fraud Examiner (CFE) credential is awarded by the Association of Certified Fraud Examiners (ACFE). It is a premier certification for professionals specialising in fraud prevention, detection, and deterrence. The CFE demonstrates expertise in complex financial transactions, fraud investigation techniques, and the legal elements of fraud.

Certified Government Auditing Professional (CGAP)

The Certified Government Auditing Professional (CGAP) certification is offered by the Institute of Internal Auditors (IIA). It is tailored for professionals in the public sector, validating expertise in government auditing standards, methodologies, and best practices. The CGAP is a prestigious credential that enhances career opportunities within government entities.

Chartered Accountant (CA)

The Chartered Accountant (CA) certification is a globally recognised professional qualification offered by various accounting bodies. It signifies a high level of expertise in accounting, finance, and business. Candidates undergo rigorous training and examinations, covering auditing, taxation, financial reporting, and business strategy. The CA designation is essential for senior accounting roles and leadership positions.

Certification in Risk Management Assurance (CRMA)

The Certification in Risk Management Assurance (CRMA) is offered by the Institute of Internal Auditors (IIA). It equips professionals with the ability to advise on risk management and provide assurance on core business risks. The CRMA demonstrates expertise in risk management and promotes a risk-aware culture within organisations.

Certified in Control Self-Assessment (CCSA)

The Certified in Control Self-Assessment (CCSA) credential is offered by the Institute of Internal Auditors (IIA). It is designed for professionals seeking to advance their expertise in internal control self-assessment, including risk identification, control evaluation, and business area assessment. The CCSA is ideal for internal auditors, risk management staff, and control specialists.

Certified Information Technology Professional (CITP)

The Certified Information Technology Professional (CITP) credential is offered by the American Institute of Certified Public Accountants (AICPA). It is designed for CPAs who want to demonstrate expertise in information technology. The CITP focuses on bridging the gap between business and technology, emphasising risk assessment, business analytics, and information management.

Internal Audit Practitioner

The Internal Audit Practitioner certification provides training for university students, entry-level auditors, rotational internal auditors, and internal auditing managers. It covers internal audit attributes, risk management, engagement planning, evidence reliability, and communication. The program involves two years of study and prepares candidates for a two-hour examination.

Performance Management and Strategy Certificate

The Performance Management and Strategy certificate is designed for Certified Public Accountants (CPAs) to enhance their auditing careers. It provides an understanding of performance management and strategy, including strategic pricing, organisational performance management, and customer profitability. The program consists of two parts, combining coursework and hands-on experience.

Audit Committee Certificate

The Audit Committee certificate provides hands-on experience in overseeing financial reports within an organisation. It includes

Auditors need a strong understanding of economics and finance

While a law degree is not a typical route to becoming an auditor, a strong understanding of economics and finance is essential. Auditors are responsible for examining and analysing an organisation's financial records, and ensuring compliance with laws and regulations. They also advise clients on financial strategies and investigate fraud.

Auditors need a bachelor's degree in accounting, finance, economics, or a related field, to gain a comprehensive understanding of accounting principles, business practices, and regulatory standards. A degree in economics provides auditors with the analytical skills and understanding of economic theories and models to analyse market trends and economic indicators. This knowledge is particularly useful for conducting performance audits and providing insights into economic efficiency.

In addition to a degree, auditors can benefit from certifications such as the Certified Public Accountant (CPA) or Certified Internal Auditor (CIA) qualification. These certifications demonstrate proficiency in accounting and regulatory knowledge, enhancing an auditor's credentials and career prospects.

While a law degree is not the typical path to becoming an auditor, a strong understanding of economics and finance is essential for auditors to effectively perform their duties and ensure compliance with legal and regulatory requirements.

Auditors must be able to communicate complex ideas

Effective communication skills are essential for auditors. They need to be able to convey complex ideas to clients, who may not have the same understanding of auditing language and concepts. This communication can take the form of written reports or in-person meetings. Auditors must be able to explain their findings and recommendations clearly and concisely to ensure the client can take appropriate action.

Strong communication skills also enable auditors to listen effectively to clients, managers, and stakeholders, ensuring they understand their concerns and objectives. This understanding allows auditors to tailor their work to meet the specific needs of their clients and build trust-based relationships.

Additionally, auditors often work as part of a team, so they must be able to communicate and collaborate effectively with their colleagues. They may also need to negotiate and discuss complex issues with other team members, requiring clear and concise communication.

Furthermore, auditors often work with people from diverse backgrounds and varying levels of understanding. Therefore, auditors must adapt their communication style to suit their audience, ensuring their message is accessible and understandable to all stakeholders.

Excellent communication skills are crucial for auditors as they play a vital role in building relationships, conveying complex information, and ensuring that their findings and recommendations are understood and acted upon by clients and stakeholders.

Frequently asked questions