6 Reasons Why Starting Your Accounting Career in Audit is a Smart Move

As an aspiring accountant, you may have heard the advice from your professors or industry veterans that starting your career in audit can provide immense benefits down the line. But what exactly are those benefits, and why is audit such a valuable experience for young accounting professionals?

In this comprehensive blog post, I'll dive deep into the 6 key reasons why beginning your accounting journey in the audit field can set you up for long-term success. Drawing from my own 15 years of experience working as an auditor at PwC, I'll share insider insights and practical takeaways that will have you eager to kick off your career in this dynamic field.

1. Develop a Mindset of Professional Skepticism

One of the hallmarks of audit work is the need for professional skepticism - the ability to critically evaluate evidence and information, and not simply take things at face value. As an auditor, your primary responsibility is to uncover the truth, find the supporting documentation, and ensure the financial statements accurately reflect a company's financial position.

This mindset of professional skepticism is invaluable, as it trains your brain to always dig deeper, ask probing questions, and rely on hard evidence rather than assumptions. Over time, this way of thinking becomes ingrained, and it will serve you well in any accounting or finance role you take on down the line.

Whether you're reviewing a complex contract, analyzing a set of financial statements, or advising a client, that innate sense of professional skepticism will make you a more credible, trustworthy, and effective professional. Clients and colleagues will come to rely on your ability to uncover the facts and provide recommendations grounded in solid evidence.

2. Gain Exposure to a Diverse Range of Industries and Accounting Issues

As an auditor, you'll have the opportunity to work with clients across a wide variety of industries - from manufacturing and retail to healthcare and technology. This breadth of experience is invaluable, as it exposes you to the unique accounting challenges and nuances of different business models and sectors.

Rather than being pigeonholed into a single industry, you'll develop a well-rounded understanding of accounting principles and how they're applied in different contexts. This versatility will serve you well, whether you choose to specialize in a particular industry or maintain a more generalist focus in your career.

Additionally, the diverse client base means you'll encounter a broad range of accounting issues and complexities. From revenue recognition to inventory valuation to complex financial instruments, you'll gain hands-on experience tackling the types of challenges you're likely to face throughout your accounting career.

This exposure to a wide array of accounting topics and industry-specific knowledge will make you a more well-rounded and adaptable professional, capable of navigating complex situations and providing valuable insights to your clients or employers.

3. Learn the Inner Workings of the Audit Process

As an auditor, you'll have a front-row seat to the entire audit process - from planning and risk assessment to fieldwork and reporting. This insider knowledge is invaluable, as it will give you a deep understanding of how audits are conducted and the various stakeholders involved.

When you eventually transition to the "other side of the table" - whether that's in a corporate accounting role, a financial leadership position, or even as an entrepreneur - this audit process expertise will be a significant advantage. You'll know exactly what auditors are looking for, how they approach their work, and the types of information and documentation they require.

This knowledge will empower you to better prepare for audits, anticipate auditor requests, and even negotiate more effectively with them. You'll be able to provide the necessary information upfront, streamline the audit process, and avoid the common pitfalls that many companies face when working with their external auditors.

Ultimately, this insider understanding of the audit process will make you a more savvy and strategic professional, capable of navigating the audit landscape with confidence and ease.

4. Establish a Higher Salary History

One of the tangible benefits of starting your career in audit is the potential for a higher starting salary. Auditors, particularly those at the Big 4 and other large accounting firms, tend to command higher compensation compared to their counterparts in private industry.

This is due to the specialized skills and in-demand expertise that auditors develop, as well as the high-pressure, deadline-driven nature of the work. Audit firms need to offer competitive salaries to attract and retain top talent, which can work to your advantage as a young professional entering the field.

By beginning your career in audit, you'll establish a higher salary history from the outset. This can have a compounding effect, as future employers will likely base their offers on your previous compensation levels. Additionally, the skills and experience you gain in audit can make you a more valuable and sought-after candidate as you progress in your career.

Of course, salary is not the only factor to consider when choosing a career path. But the potential for a higher starting salary, coupled with the other benefits of audit experience, can make it a smart financial decision for many aspiring accountants.

5. Accelerate Your Path to CPA Licensure

Obtaining a Certified Public Accountant (CPA) license is a crucial milestone for any accounting professional, as it demonstrates your mastery of the field and opens up a world of career opportunities. Starting your career in audit can significantly accelerate your path to CPA licensure.

As an auditor, you'll gain the necessary experience and exposure to the various accounting principles, standards, and regulations that are tested on the CPA exam. Additionally, many audit firms provide extensive training and support to help their employees prepare for and pass the CPA exam.

This head start on the CPA process can be a game-changer, as it allows you to get licensed and begin reaping the benefits of that credential earlier in your career. Employers highly value CPA-licensed professionals, and the credential can unlock doors to more advanced, higher-paying roles.

By getting your CPA license sooner, you'll be able to differentiate yourself from the competition, take on more complex and strategic responsibilities, and position yourself for long-term career growth and advancement.

6. Enjoy the Opportunity to Travel the World

While not always the primary consideration, the opportunity to travel the world is an exciting perk of starting your career in audit. Many audit engagements require on-site work at client locations, which can take you to different cities, states, or even countries.

This exposure to diverse cultures, customs, and business environments can be incredibly enriching, both personally and professionally. You'll gain a global perspective, develop cross-cultural communication skills, and have the chance to experience new places and cuisines.

Even if you don't end up traveling extensively for work, the audit experience itself can open doors to international opportunities down the line. The skills and expertise you develop as an auditor are highly valued globally, and your experience can make you an attractive candidate for roles with multinational companies or overseas assignments.

So, whether you're eager to explore new destinations or simply want to broaden your horizons, the travel opportunities inherent in audit work can be a significant added benefit to consider.

Conclusion: Audit Experience Lays the Foundation for a Successful Accounting Career

Starting your accounting career in audit may not be the most glamorous or high-profile path, but it is undoubtedly one of the most valuable and rewarding. The skills, knowledge, and experiences you'll gain as an auditor will serve as a strong foundation for your future success, no matter which direction your career ultimately takes.

From developing a mindset of professional skepticism to gaining exposure to diverse industries and accounting issues, the audit experience equips you with a versatile skillset that is highly sought after by employers. Add in the potential for a higher starting salary, accelerated CPA licensure, and even the opportunity to travel the world, and it's clear why audit is such a smart choice for aspiring accountants.

So, if you're considering your options and wondering whether to pursue an audit role, I encourage you to take the leap. The challenges and demands of audit work may be intense, but the long-term benefits will be well worth it. Embrace the opportunity to become a more credible, adaptable, and strategic accounting professional - one who is poised for success in any finance or business role you choose to pursue.

If you're ready to take the next step in your accounting journey, I invite you to check out my Controller Academy program. This comprehensive online course will equip you with the skills and knowledge to excel as a financial leader, whether you choose to specialize in audit or explore other areas of the accounting field.

Additionally, you may find my other best-selling courses helpful as you navigate your accounting career:

• The Night Before the Accounting Interview Guide - Prepare for your next accounting interview with confidence.

• Controller KPI Dashboard - Master the most important P&L and Balance Sheet KPIs to run a successful business.

Remember, your accounting career is a journey, and starting in audit can be a strategic and rewarding first step. Embrace the challenges, learn from the experience, and watch as it propels you towards a fulfilling and successful future in the world of finance and business.