External auditor

External auditors combine strong interpersonal skills with a high level of attention to detail to help businesses of all types and sizes achieve their performance potential

As an external auditor, you'll examine financial records and other data to provide businesses, their investors and market regulators with a clear picture of how they're performing. You'll also make evidence-based recommendations for improvement.

Although essentially a qualified accountant, your auditing work will extend beyond financial audit as you'll work with clients to help them identify and manage risks across all areas of their business.

External audit is sometimes referred to, or grouped with, 'assurance' services; the role of an external auditor is similar to, although distinct from, that of an internal auditor, chartered accountant or management consultant.

Types of external audit work

External audit can be split into two areas:

• financial audit - examining a company's financial statements and records to provide a certification of their current financial position and make recommendations to strengthen this
• non-financial (or corporate) audit - examining non-financial information to provide assurance in other areas or help a company address specific problems. The scope of this work is broad and will depend on the needs of the client and the services provided by the auditing firm.

Non-financial audit can include assurance on compliance with regulations, audit of operational procedures or systems, assessing value for money or risk of fraud, performance against sustainability or equality and diversity objectives.

The focus of your work will depend on your role and the firm you work for.

You could be involved in a range of audit projects with clients across various sectors and sizes, or work in a more specialised role, such as public sector auditor, financial services auditor or private client auditor. Alternatively, you might specialise in a specific type of audit, such as risk, fraud or non-financial assurance.

Your role may also include broader accounting and advisory services. This is more common in smaller firms working with smaller clients.

Responsibilities

As an external auditor, you'll need to:

• visit client sites and talk to different levels of management to understand the business and their needs
• plan, carry out and in some cases design bespoke audit procedures and tests
• attend meetings and interview staff to gather audit evidence
• examine accounts, financial records and other documentation
• observe stock takes and/or other business procedures
• use analytics to assess financial reporting, fraud or operational business risks
• prepare or contribute to a final audit report, including making recommendations for improvements to systems or processes
• discuss audit conclusion and recommendations with clients
• work towards your chartered accountancy qualification, which may include study leave.

Salary

• The average salary for a graduate trainee is around £28,000.
• Once qualified and as you progress into more senior roles, you could earn between £32,000 and £45,000.
• Audit managers can earn between £50,000 and £80,000.

Salaries for external auditors vary depending on the location, size and type of firm you work for.

Income figures are intended as a guide only.

Working hours

Typically, you'll work Monday to Friday, around 40 hours per week.

You may at times need to work longer hours during busy periods and to meet client deadlines. During the early years of your career, you may also need to devote time during the evenings and at weekends to study for your professional exams.

Flexible working is increasingly common in the sector, particularly in larger companies. This can include varied start and finish times, compressed hours and working from home.

What to expect

• You'll spend most of your time working from client offices, which means regular travel and time away from home. Depending on your employer, you may also travel internationally. While some work can be carried out virtually, regular in-person site visits are still preferred.
• Opportunities are available across the UK, and you can expect variety and challenge, as you'll be working with a diverse range of businesses and industries.
• You'll need to meet client deadlines, which may require flexibility and longer working hours at times.
• You'll need to obtain your professional qualification, which typically takes around three years. Employers usually offer support, including study leave, but you'll also need to study in your own time, especially around exams. This is particularly important if your degree is in a non-finance subject, as building technical knowledge will be essential.
• The audit profession is evolving rapidly, with new technology and an expanding range of services influencing the sector.

Qualifications

To join a graduate training programme, you'll need an undergraduate degree in any subject. Some firms will require a 2:1, however others have now removed this as a requirement. 

Employers are increasingly seeking to diversify the intake on their programmes and welcome applications from graduates of all disciplines.

You'll also need to obtain a practicing certificate and chartered accountancy qualification awarded from one of the following professional bodies:

• ICAEW (Institute of Chartered Accountants of England and Wales)
• ACCA (Association of Chartered Certified Accountants)
• ICAS (Institute of Chartered Accountants of Scotland)
• CAI (Chartered Accountants Ireland)

Employers typically fund and support this qualification as part of a graduate training programme. There are some differences in the qualifications offered by the different professional bodies. Usually, your employer will decide which professional body you'll study with, although some smaller firms may allow you to choose.

This qualification will enable you to work in all areas of accountancy practice, and some bodies also offer specialist audit qualifications, which you could complete in addition.

Skills

You'll need to have:

• strong interpersonal and influencing skills, for building relationships and negotiating with clients
• excellent written and verbal communication, for presenting complex information with accuracy and clarity
• business and commercial acumen to understand your clients and their industries
• analytical skills to gather, interpret and evaluate data
• technological competence for using data analytics, modelling tools and audit software
• good project management skills to plan and deliver work to deadlines
• critical thinking skills for reviewing evidence and forming sound judgments
• a commitment to continuous learning to keep your technical knowledge and skills up to date.

Work experience

Relevant work experience is highly valuable and helps you develop the skills you need for a career in audit. It also demonstrates motivation and commitment to the profession.

Experience outside of financial services can also be useful, especially if it helps develop your people or analytical skills.

Many larger firms offer open days for first-year undergraduates. These usually last between one to five days and provide insight into different service areas and graduate opportunities.

In your second year, you can apply for a summer internship or vacation scheme in audit and assurance. These internships are often highly beneficial, with strong performers fast-tracked through graduate recruitment processes or even offered graduate roles at the end.

Some smaller firms also offer internships, but you may need to contact them directly to ask about opportunities.

Find out more about the different kinds of work experience and internships that are available.

Employers

Most external auditors work for accountancy and business advisory firms, including large national organisations and small local practices. You could also work for the National Audit Office, auditing government departments and public sector bodies.

There are many advertised graduate vacancies.

Look for vacancies at:

• ACCA Careers
• ICAEW Job vacancies
• Accountancy Careers
• efinancialcareers

Smaller firms may not advertise all positions, and you could approach them speculatively. You can find a list of firms by region at UK Accounting Firms.

Once qualified and registered with your professional body, it’s also possible to become self-employed and work directly with clients.

Professional development

As a graduate trainee, you'll combine classroom-based training, on-the-job learning and self-directed study to pass your professional exams.

Most graduate schemes also include business and personal skills development, through courses, e-learning and mentoring. Larger firms tend to have more structured training programmes, while smaller firms may offer more tailored, flexible development.

After qualifying, continuing professional development (CPD) is essential to maintain your skills and progress into senior or managerial roles.

Your professional body will provide further training and may offer opportunities to specialise in areas such as public sector audit, financial reporting, treasury, insolvency, charity accounting or corporate finance.

Career prospects

There are a range of career progression options. If you stay in external audit after qualifying, you could become an audit manager within two to three years, with potential to advance to senior manager, director or partner roles.

Secondments to other offices, including international locations, are common in larger firms.

You can also choose to specialise - for example, by working with a specific type of client (such as public sector organisations) or focusing on a specific audit area, such as fraud or risk. Further qualifications can support such moves.

Your accountancy qualification also enables you to work in other areas of practice or within businesses, including roles in financial reporting, advisory, or general accountancy. Your audit experience is highly valued and transferable.