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Auditing vs Consulting as a profession

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AUDITING, CONSULTING

Both the professions accommodate each other since an auditor finds loopholes in a system and consultant helps the business to find a solution.

The major differences between these two professions are described below –

                         AUDITING           CONSULTING
Auditing implies an independent examination of financial information of an entity with a view to expressing an opinion thereon. Auditing stakeholders can be both external and internal. Consulting is related to solving managerial, financial or operational issues that the client might have. Consulting stakeholders are generally internal management.
Basically, they are appointed to point out the flaw in your system but they do not provide a readymade solution. Example- Tax Audit They are hired by companies in order to help them resolve a specific issue that they are facing. Example- Tax consultancy services
It is lucrative profession since auditor is a person with high repute, technically sound and have ability to understand visible or invisible information, high on ethics and integrity, he should have courage and conviction and report transparently. The fact that they bring special skill instead of heterogeneous experiences in an objective and provide outside view is what makes their services so popular. Moreover, the consultant is a person who is an expert inhis field and can understand the concern well.
Auditing as a career comprises of Internal auditor and Statutory auditor. Consulting as a career consists of Management, Operational and Financial consulting.
Auditing field is dominated by Deloitte, KPMG, Ernst & Young, PWC, Dewan P.N. Chopra & Co., Great Thornton International, RSM International, SS Kothari, Lodha & Co., Sahni Natrajan & Bahl and many others. Management Consulting field is mastered by McKinsey, BCG & Bain. IBM Global Services & Accenture are the two largest operational and technology consulting providers. The big 4 accounting firms are well-positioned in the field of financial consulting.
It’s a great career option since you get to see every part of a business, you can work in any industry, any organisation. You develop all sorts of technical and soft skills. It has a phenomenal scope. It is the best way to learn how to work with clients and satisfy their expectations because a large part of your time will be spent for the client themselves.
In auditing, no two days are the same. In fact, you spend only 30% of your time working on audit reports. Your to-do list often includes reviewing reports, writing audit committee papers, liaising with external specialists to support your team on particular audit engagements, conducting meetings, attending seminars on latest practices, or catering up with fellow heads of audit from other organisations. Whereas, in consulting you learn how to be part of a team, that is united by a common goal which will allow you to build strong relationships for the future.
The minimum qualification required to become an auditor is practising chartered accountant and the average salary of an auditor is approximately four lakhs. It is worth noting that only outstanding academic achievers are likely to be recruited by the top consulting firms. But, if you manage to land an offer with one of them, you are likely to receive a salary of 73k dollars per annum.

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