All those companies that are publicly traded in any of the Stock Exchanges need to have internal auditors on a compulsory basis. This is necessary so that the companies can independently review their organization's list of controls and also in order to check and assess the fiscal health and economic condition of the business. The scope of internal auditing within the dimensions of a business organization is extensive and possibly will engage and occupy various fields and elements. For example, the efficiency and the worth of all the operations, the consistency and trustworthiness of financial reporting, recognition and investigation of any possible fraud, conservation and protection of assets, and finally observance with laws and regulations.
The scope of work and responsibilities for an Internal Auditor are comprised of the following functions:
• First and foremost the auditor needs to establish and communicate the objectives of the audit that are necessary to appropriate the management.
• From there on he or she will require developing an understanding of the particular business area that the auditing team takes under the reviewing. This would include elements like key transactions, objectives, and measurements.
• The internal auditors are also supposed to determine and describe the key risks that the business in question may be facing and explain everything that would fall within the scope of the audit.
• The function of the internal auditors would also include ensuring the inherent risk in a transaction type if it is not properly monitored or controlled.
• Internal auditing further includes the development and execution of a risk based examining procedure and relevant approach to see if the operating systems are functioning well.
One of the primary academic qualifications required in order to start a career in internal auditing as an auditor is a regular 4 year College Degree. Internal Auditors can come from a host of different fields including Finance, Business, Engineering, Liberal Arts and Accounting. In general the required qualifications can be broken down into two distinctive categories:
• Professional Qualifications: Various Accounting, Auditing, IT and sector relevant qualifications in the context of Internal Auditing
• Academic Qualifications: Effectively a diploma or degree, something more like an MSc or MBA.
Nevertheless, work as an auditor you are required to get a major, so most internal auditors go for a specific business or accounting degree, which is recommended. A lot of companies ask for a Master's Degree and preferably an MBA when recruiting internal auditors.
Compliance, efficiency, reliability and insight are some of the key skills required in one's personality, along with relevant educational qualification, so that the individual can emerge as a successful internal auditor.
Yet another of the necessary additional qualifications required to become a well placed internal auditor are the professional certifications. One of the most popular certifications for Internal Auditors is the Certified Internal Auditor or CIA Certification. This is actually an exam divided into four specific parts which is arranged by the Institute of Internal Auditors of the IIA. Market research says that certified auditors tend to have the most number of career opportunities when compared to general ones.
Most internal auditors start their career in internal auditing as freshmen just graduated out of college. Most companies and business organizations have in house training departments or hire trainers from the outside to train the beginner auditors about the various aspects of an audit. In case a candidate gets one of the certifications, he or she will be required to complete all the continuing education credits in the following years.
The job outlook for a career in internal auditing is rather bright and favorable with a lot of job openings and favorable pay scales available in the market.
An experienced Internal Auditor may be well enough in a state to draw a nice six figure amount per annum. The salary in the Internal Auditing sector depends on elements like experience and relevant industry experience. Auditors who work in the financial service industries such as broking or banking with 5 or more years of experience along with certifications can make quite a quality living without a doubt. At present an internal auditor may earn around $72,000 per year.
Internal auditing is a field of work that has a significance role to play in the paradigm of any business both big and small. The job frequently involves measuring compliance and measuring the businesses policies and procedures as well to ensure a positive future.