Internal Auditor Job Description, Skills, and Salary
Are you searching for an internal auditor job description? Get to know about the duties, responsibilities, qualifications, and skills requirements of an internal auditor. Feel free to use our internal auditor job description template to produce your own internal auditor job description. We also provide you with information about the salary you can earn as an internal auditor.
Who is an Internal Auditor?
An internal auditor is qualified accounting professional. The Board of Directors of the company appoints an internal auditor to perform auditing within a company. An auditor is a person or a corporation that a company hires to carry out an audit. A person must be qualified by the organization that oversees accounting and auditing, as well as meet other requirements, to operate as an auditor. Generally speaking, a person needs a certificate of practice from the regulatory body to serve as the company’s external auditor. An internal auditor is often a company employee, though some businesses choose to retain an outside professional instead. Internal auditing is a free-standing, impartial assurance and consultation process intended to enhance an organization’s performance. Bringing a methodical, disciplined approach to assessing and enhancing the efficacy of risk management, control, and governance procedures may help a company achieve its goals. Internal auditing may be able to accomplish this by offering knowledge and suggestions based on analyses and evaluations of data and business procedures. As an impartial source of independent counsel, internal auditing benefits governing bodies and top management by being committed to integrity and responsibility.
Organizations use experts known as internal auditors to carry out the internal auditing activity. The scope of internal auditing within an organization can be very broad and may cover subjects like governance, risk management, and management controls over: efficiency/effectiveness of operations (including asset protection), the accuracy of financial and management reporting, and compliance with laws and regulations. In addition to participating in fraud investigations under the supervision of fraud investigation specialists, conducting proactive fraud audits to spot potentially fraudulent acts, post-investigation fraud audits to spot control failures, and conducting post-investigation fraud audits to establish financial loss are all examples of internal auditing activities. An internal auditor’s (IA) primary responsibility is to spot issues and address them before they are found during an external audit by a company from outside or by regulatory bodies like the Securities and Exchange Commission (SEC). To ensure that investors have access to all relevant information before investing, one of the SEC’s responsibilities is to supervise how corporations disclose their financial statements.
Although the management of the firm or a corporate employee may designate an internal auditor, independence is the primary requirement for the performance of an internal audit. The independence of an internal audit may be compromised, which could affect its objectivity. Internal auditors guide management and the board of directors (or other similar oversight bodies) on how to better carry out their duties. They are not in charge of carrying out business activities. Internal auditors may come from a range of higher educational and professional backgrounds due to their wide range of participation. The Certified Internal Auditor title is given internationally by the Institute of Internal Auditors (IIA), which is a recognized international standard-setting authority for the internal audit profession. There are more classifications available in some nations. An internal auditor delivers a report to the Board and is administratively and functionally accountable to the Board to the management of the organization. Internal auditors need to be analytical thinkers who are passionate about enhancing the internal control framework of an organization if they are to be successful. The best candidates will have outstanding report-writing and presentation skills as well as outstanding business knowledge.
Internal Auditor Job Description
What is an internal auditor job description? An internal auditor job description is simply a list of duties and responsibilities of an internal auditor in an organization. Below are the internal auditor job description examples you can use to develop your resume or write an internal auditor job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of an internal auditor include the following:
- Determine and evaluate any significant business risk areas.
- Put best audit and business practices into operation by any applicable internal audit statements.
- Control resources and review tasks.
- Identify and control all business and financial hazards through the efficient use and oversight of controls.
- Create internal audit policies and procedures and keep them up to date in compliance with regional and global best practices.
- Investigate ad hoc dangers that have been identified or reported.
- Make that the Management and/or Risk Committees get complete, accurate, and timely audit information reports.
- Ensure overall control over the annual audits that are planned.
- Establish and authorize the prompt implementation of risk-based internal audits covering operational and financial processes as instructed by the controller and by the yearly audit plan.
- Help with numerous audit tasks and issues while making sure to have a primary emphasis on revenue assurance.
- Perform the specified functional area or department’s risk evaluation within the designated timeframe.
- Participate in the risk assessment of the organization’s internal audit carried out by the Office of Internal Oversight and Evaluation Services (IES).
- Document and implement annual internal audit duties in internal control and risk management.
- Perform each audit assignment on the systems and procedures for finance, operations, and administration.
- Analyze the effectiveness of internal controls and the applicability, effectiveness, and cost-effectiveness of internal audits.
- Determine the degree to which established rules, regulations, policies, and procedures are being followed; examine the truthfulness and dependability of financial, accounting, and other data; and report any variations.
- Take part in the planning, reporting, scoping, execution, and follow-up of audit engagements as specified.
- Learn and study the company’s policies and processes.
- Examine the effectiveness of controls and risk mitigation by evaluating complete business processes and transactions.
- Determine opportunities for improving the internal audit control environment.
- Execute testing by various regulatory requirements and accreditation standards.
- Support the creation of internal audit programs for special reviews, operational audits, etc.
- A degree in financial management, financial accounting, or internal auditing is essential.
- Two years of experience working in an internal auditing setting.
- The Institute of Internal Auditors’ accreditation.
- Outstanding accounting abilities.
- Strong intellectual and problem-solving abilities, analytical thinker.
- A keen eye for detail and the capacity to multitask.
- The capacity to work under deadline constraints.
- A capacity for both independent work and teamwork.
- Excellent communication, IT, and documentation abilities.
- Technical skills: The capacity to use software, technology, and other tools to achieve tasks is referred to as technical skills. To examine data or perform research, internal auditors may need to use sophisticated software or tools. Strong technical abilities can make you more productive at work and speed up task completion.
- Communication skills: Internal auditors must be able to communicate effectively to share information with their coworkers and superiors. Internal auditors must also have strong communication skills because they frequently interact with staff members from various areas of the business. They must not only be able to listen to their supervisors and clients, but also communicate clearly when discussing the outcomes and methods of their work. To inform the stakeholders of the company of the findings of their audits, internal auditors also require strong communication abilities. Internal auditors who have strong communication abilities can make difficult information easier to understand for others.
- Analytical skills: The foundation of your capacity to carry out audits is your analytical skills. To be able to recognize and comprehend the information they must study and assess, internal auditors must possess excellent analytical abilities. Senior internal auditors must also be able to analyze their analyses’ findings and develop conclusions from the data they’ve examined. To recognize problems and offer effective answers, it’s crucial to have sharp analytical abilities. Internal auditors find problems with transactions and documentation, among other things. It is critical to carefully analyze paperwork and consider business practices. Careful inspection and problem-solving abilities are required for the position of internal auditor.
- Problem-solving skills: Internal auditors must possess problem-solving abilities because they may run into difficulties when carrying out an audit. For instance, they must be able to pinpoint the issue’s root cause and come up with a fix if the auditor discovers a mismatch in a company’s records if the records are incomplete.
- Mathematical skills: An internal auditor typically needs to be familiar with accounting. It’s also imperative to be proficient in accounting principles and have basic to advanced math skills. Internal auditors must interpret and analyze statistics, which calls for mathematical expertise.
- Organizational skills: Internal auditors must have excellent organizational skills because they deal with a variety of financial documents and files. Efficiency in the job of an internal auditor depends on keeping paperwork current and organizing it.
- Leadership skills: Teams of junior auditors are frequently under the direction of senior internal auditors. Your team may be managed and motivated with the aid of leadership abilities, which can also be used to assign duties and tasks. Your team members will feel supported and valued if you have strong leadership qualities in place.
- Attention to details: Internal auditors need to have an acute eye and pay great attention to detail. Another essential component of an internal auditor’s job is closely scrutinizing records to make sure the business complies with all regulations.
How to Become an Internal Auditor
Step 1: Earn a Bachelor’s Degree
An appropriate educational background is needed to be an internal auditor. A bachelor’s degree is typically required by organizations searching for knowledgeable internal auditors, particularly one with a financial, accounting, or similar field of study emphasis. It’s also possible to succeed by earning a bachelor’s degree with a concentration in math, auditing, or accounting. Joining groups that support your efforts to create a strong resume might be something you want to think about. A master’s degree in finance or another similar discipline, such as taxation, financial accounting, auditing, business law, or business communication, is preferred by some employers. Another option to take into consideration is educational institutions that provide graduate or undergraduate degree programs with an internal auditing concentration. Although a master’s degree is not necessary for internal auditors, several states need professionals to complete further college coursework after receiving a bachelor’s degree to qualify for the Certified Public Accountant (CPA) designation. Internal auditors are better positioned to compete for senior roles and career advancements by earning a graduate degree in a related discipline.
Step 2: Complete Training Programs
Newly recruited internal auditors must complete a training phase, per employer requirements. The employer assigns a skilled and experienced worker to supervise and mentor the new hire during this time. Depending on the position and the firm, the training time may run anywhere from a few months to more than a year. Following the completion of their bachelor’s or master’s degrees, internships may also offer internal auditing training programs. Through an internship, students can get real-world, hands-on experience in the sector of their choice. Students might finish several internships while in college. Internships are occasionally needed for post-graduate programs to meet graduation requirements.
Step 3: Acquire Certified Internal Auditor Exam Work Experience
The CIA exam’s job experience criterion must be met to become an internal auditor. Some employers impose a work experience requirement before the CIA exam for prospective internal auditors. The amount of work experience necessary is based on the highest educational level. In addition to internal audit experience, practical expertise in a particular audit or assessment discipline, such as internal control, quality assurance, compliance, or external auditing, may be accepted in place of this experience requirement. For verification of work experience, it is advisable to get in touch with the Institute of Internal Auditors (IIA). You can make sure that your work experience fits into the IIA’s recognized categories in this way.
Step 4: Pass the CPA Exam
A certified public accountant (CPA) is a type of financial counsellor who helps companies, people, and other organizations plan for and meet their financial objectives. The CPA Exam evaluates the abilities and expertise of beginning CPAs. Some employers demand that prospective internal auditors finish and hold a CPA. It’s a good idea to sign up for a test date and get started preparing for the CPA examination right away if you’re interested in a position that calls for this certification. Employ the appropriate study methods to pass the CPA exam. The AICPA provides free access to the fundamental study materials for the CPA Exam. Additionally, they offer free CPA Exam practice exams as well as a video that demonstrates how to use the CPA Exam platform. Instead of cramming all of your studying into one long period, it is best to prepare for difficult examinations like the CPA in small bursts with intervals in between. There is no benefit to sitting down and studying all at once. There is a limit to how much information our brains can store at once before we start to become distracted. An excellent place to start is with 10 weeks of 10 hours per week of study. Online review courses can be of great assistance, but we advise using them judiciously. Practice CPA tests are available in the top online review programs. As you study, this makes a more accurate simulation of the CPA exam testing atmosphere. Additionally, it’s crucial to treat practice questions seriously as you progress through the review course. Even though it is only a practice exam, it is best to approach it seriously.
Step 5: Acquire Additional Certifications
You should consider obtaining extra qualifications if you want to specialize in a particular area of internal auditing. Candidates for employment will benefit from this in the labour market. Obtaining certificates demonstrates to potential employers that you are focused and determined. Depending on the precise type of internal auditing you’re interested in, there are a variety of different certifications available. These certifications include:
- Certified Internal Auditor (CIA) certification is offered by the Institute of Internal Auditors (IIA).
- Certified Public Accountant (CPA) certification is offered by the American Institute of Certified Public Accountants (AICPA).
- Certified Government Auditing Professional (CGAP) certification is offered by the Internal Audit Association (IAA).
Where to Work as an Internal Auditor
Internal auditors are employed by federal, state, local, and non-profit organizations as well as by publicly traded businesses. Internal auditors normally put in a 40-hour work week, although they occasionally may put in more time to finish challenging tasks or meet deadlines. Although they may travel to different parts of the corporation or other businesses, they normally work in an office setting. Internal auditors usually report to the audit manager and operate in teams of two to three. Internal auditors believe their work to be gratifying and satisfying, even though it can be difficult and require great concentration and attention to detail.
Internal Auditor Salary Scale
In Nigeria, the average monthly salary for an internal auditor is roughly 308,000 NGN. The lowest salary is 157,000 NGN, while the maximum salary is 474,000 NGN. This is the typical monthly wage, which also includes housing, transportation, and other amenities. The compensation range for internal auditors in the United States is between $56,315 and $68,232, with an average of $62,082.