Internal auditing refers to the system whereby organizations are enabled to fulfill their target of following business processes without fail. The auditors are required follow a systematic methodology to monitor and analyze business procedures and activities of business. Discrepancies related to the organizational processes are identified and recorded. An internal auditor is a professional who performs internal audits for all departments of a company like accounts, Human resource, production, administrative and others. He examines the company's compliance with rules and regulations set by local and federal government bodies.
From fiscal statements of a company to customer services, an internal auditor can audit anything. The core job of an auditor is to examine the facts and figures presented by the company with an unbiased attitude and detached approach. An auditor lacks any kind of personal interest related to a company's success, victory and failure that emerges out of internal auditing. Apart from drafting an annual internal audit plan, the auditor also builds checklists and supervises audit work schedules. While advising the company management and governing body on ways to improve performance, the internal auditor ensures that all policies and principles designed for internal audit are meticulously followed. An auditor also checks whether the internal accounting procedures and operating systems are adequate and on track.
Internal auditors play a core role in a company's risk management. The internal auditor ensures the company fully complies with the regulations laid down by authorized legal bodies and thus troubleshoots any problem that might occur during auditing. In order to safeguard the company from legal hassles, an internal auditor identifies problems and gives the company a scope to correct the issues at hand. Exercising unchallenged independence, the internal auditor evaluates the possible risks and devises risk management procedures with special attention to the key risk areas. Thus, the auditor facilitates a company's growth by protecting its assets.
There are certain areas where an internal auditor must be very skillful. These include an internal auditing system's role in management, risk and control, business analysis, and business management and efficiency in conducting an audit. The internal auditor should be skillful in understanding the requirements of corporate management. The auditor must be prepared to create a healthy balance of risk management approaches instead of extreme risk-taking or avoiding issues. They must be keen observers and must have good decision making skills. They must be honest and unbiased and report the facts as they are.
To begin with auditor training, a sound knowledge in accounting and mathematics is required. Completing internal auditing lessons at an undergraduate level and a Master's degree are both essential qualification for internal auditing. Successful completion of the tests designed by Institute of Internal Auditors will improve possibilities for worldwide acceptance into a career as an internal auditor.
At an entry level job with no experience, an internal auditor can earn approximately $ 39,000. This can vary and increase up to $51, 000. Once an internal auditor gains experience of one to four years, the salary can increase to between $43, 000 and $56,000. Senior auditors with around nine years of experience can draw as much as $ 67,000 annually.
Internal Auditors play a fundamental role in corporate functioning and hence are always in demand. They not only benefit the smooth flow of a business but also pave the way for fast growth. Thus, they shall always continue to be a core part of businesses to protect their assets and enable the employees to reap financial benefits while simultaneously growing with the company.
Internal Auditor Job Description440 Views
by Silas Reed