Basically, an internal auditor is required to conduct a comprehensive review of the organization’s adherence to regulatory guidelines. He or she is required to play a broader role in managing the company’s reputation. Strategic risks, such as the board stretching company resources when producing too many products or auditing the reputational risk of the organization, could be damaged by using cheap workforce in foreign countries. These auditors are required to provide the assurance that the organization’s operations are in compliance with its policies and procedures and are operating effectively and efficiently. Internal auditors are required to look at all the risks facing the company and the measure taken or to be taken to manage these risks. The basic responsibility of an internal auditor is as follows:
- To perform internal quality assurance audits.
- To identify accounting and control issues and make necessary recommendations.
- To conduct audits in order to ensure compliance with the company’s standard operating policies and procedures.
- To ensure efficient and timely audit closure of all non-conformities referred during audits.
- To ensure that all the audit testing/results and reports are complete and accurate.
- To create formal audit reports and assign corrective action as and when needed.
- To plan and execute the accounting and financial audit reports, business processes, and other audit programmers or assignments.
- To ensure that audit findings and recommendations are properly presented to and agreed to by the management.
- To ensure that all agreed-upon recommendations are subsequently implemented.
- To stay abreast of internal audit best practices.
Based on the salary survey conducted by Robert Half in 2007, a recruiting and placement firm, demand for auditing jobs is so great that it is one of the fastest-growing professions. The salaries for internal auditors depend to a great extent on the size of firm, location, level of education, and professional credentials. Average salaries for internal audit managers in big companies are between $77,500 and $101,500 and in small companies it ranges between $36,750 and $44,500 per year. Based on the salary survey report conducted in Europe, the average salary paid to internal auditors changing jobs during 2008 was £53,629, which was 3.9 percent higher than in 2007. According to the analysts, an internationally growing demand for internal auditor jobs has been identified. To a great extent, governmental policies with strict accounting and auditing regulations all over the world are the driving forces behind the need for it.