Auditors examine personal and organizational financial records to verify their accuracy, detect fraud, and identify opportunities for improving financial processes. Their specialized experience can often help organizations identify and correct financial inefficiencies.
Most people who work in this occupation can be classified as either internal or external auditors. The basic responsibilities of both classifications are the same, but their daily lives are very different.
Internal auditors are employed by the organization they audit. They examine the organization's financial procedures, and recommend ways that their financial reporting or internal controls could become more efficient.
In private companies, internal auditors normally report to upper management. But in publicly-traded companies, they report to the board of directors. This is done so that auditors don't feel pressured by internal forces to manipulate their reports.
External auditors work for an outside firm that organizations hire to examine their financial statements. In some cases, these auditors may work for banks or government agencies who need to examine the financial records of organizations to make sure that money is correctly accounted for.