How to become An Internal Auditor

Robust Internal Auditors show their presence at the beginning and end of continual improvement projects. In the beginning, they identify opportunities for improvement; in the end, they provide a mechanism for monitoring implemented improvement to sustain its benefits for the long term.

• Auditor
• Internal Financial Auditor

What do Internal Auditors do?

An Internal Auditor would typically need to:

• Provide an objective and independent guarantee that an organization’s risk management, governance, and control processes are effective and in sync with the survival and prosperity of the organization
• Attend meetings with clients to understand organizational processes; travel to different sites to meet relevant staff and obtain documents and information
• Consider financial and accounting risks along with other factors such as reputation, growth, environmental impact, treatment of employees, and organizational ethics
• Research, assess, and record the competence of the corporate risk management processes; perform independent risk assessments on key business activities; use the information to guide future audits
• Assess organizational compliance with rules and regulations; bring to management notice issues for redressal
• Provide support and guidance to senior management on handling new opportunities; provide ad hoc advice and guidance to managers and staff at all levels through courses and training sessions
• Predict fledgling issues through research and interviews and decide how best to deal with them; agree on recommendations with relevant staff members to make improvements to operations and help to secure backing for them in meetings
• Manage a variety of stakeholders and their expectations through regular communications; provide them with evidence that senior management is managing their business effectively

Internal auditing is usually office-based. Internal auditing being a corporate function in medium to large organizations, employment opportunities crop up across large and small cities and towns, wherever businesses abound. Companies that have overseas offices make global employment a distinct possibility.

Travel within a workday may be required to visit other sites when on audit fieldwork. The amount of travel varies by employer, but there may be opportunities for overseas travel, especially with global audit functions.

The dress code of an Internal Auditor depends on the location, sector, size, and type of company but may be business casual for the most part.

Audits take place on a monthly, quarterly, or annual basis. Working hours tend to be regular office hours. Irregular hours because of overtime may be a regular feature in large practices.

It is not legally mandatory for organizations, but many businesses find it to their advantage to have an internal auditing department; as such, the pool of employers is large and diverse.

Speculative applications to prospective employers may bring in fruitful results. Part-time work, Flexi-schedules, and career breaks are all viable options but may depend on the employer.

 Internal Auditors are usually employed by:

• Accountancy Firms
• Private Traded Companies
• Public Traded Companies
• Public Sector Facilities

Professional associations and organizations like the Global Institute of Internal Auditors (GIIA) are a crucial resource for Internal Auditors interested in pursuing professional development through access to trade press, updates in the sector, workshops and seminars, networking, and connecting with like-minded professionals in their industry or occupation.

• Stress due to deadlines and consequent long and irregular work hours; possible need to spend time away from family due to work-related travel
• Global audit functions may bring in their wake jet lag and stress due to constant adjustment to different time zones

Some locations offer internships designed for aspiring Internal Auditors who have some experience in other fields but do not hold a degree. They will be required to gain relevant certification throughout the internships, which may last between two to four years, depending on the level of expertise sought. Relevant summer internships and work placements with accountancy and consultancy firms will help further your chances of getting a job in an internal audit team.

Internal audit is a varied role, and individuals come from diverse backgrounds and levels of education. The career is open to all graduates, but a degree in accountancy, economics, finance, or IT would prove beneficial. A postgraduate degree is not mandatory but may prove advantageous, mainly when it includes business, economics, and business studies.

Voluntary certification from an objective and reputed organization can help Internal Auditors gain professional credibility, give employers a benchmark standard for measuring employee candidates, and increase their chances for a promotion or advancement.

Certifications in internal audit and business risk, internal audit leadership, organizational leadership, ethical leadership, control self-assessment (CSA), and relevant computer software programs like Microsoft Office Suite will prove invaluable assets.

Potential jobs on the career path include entry-level internal auditors, such as auditing specialists, risk assessment specialists, lead internal auditors, financial analysts, internal controls auditors, and information systems auditors.

A few years of working as an Internal Auditor will place you firmly on the path to progressing to the post of Senior Internal Auditor and then to that of an Internal Audit Manager. Larger firms may have an opening for a Senior Auditing Manager, a Risk Manager, or an Audit Director. The final step is either a Partner, Finance Director, or a Chief Financial Officer.

It is also possible to move laterally to the post of Senior Accountant and then progress to the Financial Controller position, culminating in that of CFO. You may work your way up internally in the business, or you may need to change employers and move to more influential organizations. Flexibility and the ability to relocate will help career progression.

Internal Auditors who have chosen to specialize or gain professional qualifications as a chartered internal auditor or chartered accountant will find more doors opening up.

Since the field affords a solid understanding of an organization and its operations and grounding in vital transferable skills, you will find it may be possible to move into other areas of the business such as IT, finance, sales, or marketing. With many years of experience in the field as well as a strong network and client base, an Internal Auditor can branch out as a self-employed consultant.

A job in internal auditing offers many opportunities to those interested in compliance and oversight, and with a background in mathematics. As the need for Internal Auditors continues to grow, there are a plethora of opportunities for job advancement in this field.

Training varies by employers but is typically carried out on the job. It is also possible to take professional qualifications with Global IIA, available at various levels, across 190 countries. The organization runs various courses, conferences, and events that are good for networking and developing knowledge and skills.

Topics covered may include the audit of taxation, prevention of organization failures, assurance mapping, audit report writing. Members of IIA have to commit to maintaining their levels of continuing professional development (CPD).

They also have access to a CPD planner and complementary framework, which can help you decide what skills you need to develop and improve. Master's and doctorate degrees are mostly found among those aiming to move into management.

Many Internal Auditors find that achieving Certified Public Accountant (CPA) status helps their careers and salary prospects significantly. The CPA requirements vary by location, but the common minimum requirement is a bachelor's degree, at least one year of experience working under a CPA’s guidance, and passing the grueling CPA exam.

Although the scope and nature of audits can vary significantly, the main priority of an Internal Auditor’s job is to resolve any issues that affect the survival and prosperity of the business.

Independence and Objectivity

While Internal Auditors are armed with multiple skills such as enthusiasm and dedication to carry out their work efficiently and effectively, independence and objectivity are two critical aspects of any internal audit process and its outcome.

Establishing reporting lines to the audit committee and senior management or board rather than the business area(s) under audit helps with the process.

Internal versus External Auditors

Internal and external auditors find themselves in agreement over adherence to a standard code of ethics and professional standards; they meet periodically to compare notes. Nonetheless, there are stark differences in the way they approach their work.

External Auditors provide an independent opinion on the financial statements of an organization; their audit is an annual exercise and uses a historical approach.

On the other hand, besides factoring in financial and accounting risks, Internal Auditors must consider the organizational reputation, environmental impact, and treatment of employees. Since their review and evaluation are a continuous process, they must also look at future events and company growth.

Underplayed but Vital

Publicly traded companies legally require their CEOs to have an Internal Auditor reporting directly to them. The post of an Internal Auditor may not be high-profile but is a vital part of a company's infrastructure to ensure smooth operations and compliance with laws and regulations.

Kings and merchants employed Internal Auditors, even before the 15th c., to detect and control fraud/theft by separating duties, independent verification, and questioning.

Being an Internal Auditor is easy. It's like riding a bike. Except the bike is on fire. You’re on fire. Everything is on fire.

Experience all the products/services offered by your employer. Learn all you can about the business environment in which you operate. Use honesty and integrity as your career compass. Cultivate a network of external contacts so you can find the answer to almost everything. Question without challenging.