Internal auditor
Anything can go wrong in your company, whether it is not complying with government rules and regulations or financial records not having accurate data.
To prevent these issues from happening, you need the help of an internal auditor. This specialist provides an objective set of eyes that oversee your company’s operations, finances, and anything else that needs monitoring.
This article goes deeper into the roles and responsibilities of an internal auditor and the skills and qualities to look for when hiring or outsourcing one.
What is an internal auditor?
An internal auditor is a professional who conducts comprehensive and objective evaluations of a company’s internal activities.
Internal auditors are in charge of ensuring a company follows compliance rules and is practicing safe and ethical work practices. They identify and solve problems before an external auditor detects them.
Their responsibilities span across various fields, such as the following:
- Finance
- Risk management
- Fraud prevention
- Data privacy
- Compliance
Duties of an internal auditor
Internal auditors have many different responsibilities that contribute to a business’s success. Here are some of their main tasks.
Financial auditing
One of the roles of internal auditors is to ensure the accuracy and completeness of financial records, documents, and ledgers.
This job involves checking computations and ensuring that funds are used legally. They also identify areas of risk or concern and help develop ways to mitigate those risks.
Compliance monitoring
An internal auditor evaluates the company’s adherence to compliance measures set by the government. Part of this involves monitoring required safety protocols, tax regulations, and data privacy.
Corporate governance
Corporate governance is a set of rules and practices that a company must follow. Internal auditors are responsible for evaluating a company’s overall corporate structure.
They check the organization’s adherence to internal policies and procedures to ensure an ethical, legal, and fair work environment.
Risk management
Internal auditors identify and evaluate potential risks to the organization’s objectives, such as operational, financial, or reputational risks. They develop strategies to mitigate these risks and enhance the organization’s resilience.
Fraud prevention
Internal auditors are responsible for preventing fraud and ensuring the legitimacy of all corporate documents, licenses, financial documents, and other records.
Skills and requirements needed in an internal auditor
Internal auditors have a specific set of skills that help them do their job well. Here are relevant skills to look for:
Attention to detail
Internal auditors must be adept at analyzing data and identifying discrepancies or areas for improvement. This allows them to come up with accurate solutions and make data-driven decisions.
Communication skills
Internal auditors must possess good communication skills to convey their findings and information to the authorities, employees, shareholders, and other relevant parties.
This includes good written and verbal communication skills, which allow them to create and relay reports and presentations.
Financial skills
A reliable internal auditor has a clear understanding of financial principles, accounting practices, and relevant financial regulations. Internal auditors must have a deep knowledge of these in order to conduct in-depth financial audits and analyses.
Knowledge of relevant laws
There are many laws and regulations that a company must adhere to, and internal auditors must be knowledgeable of these relevant laws.
Furthermore, they must be informed and updated on legal and regulatory standards that are relevant to the company to ensure compliance and reduce legal issues.
Objectivity
Maintaining objectivity is crucial for internal auditors. They must be able to conduct fair and impartial assessments to evaluate company practices accurately without bias or conflict of interest.
Where to hire an internal auditor
You can find an internal auditor candidate on several platforms, such as the following:
- Internal recruitment. You can promote existing employees or hire from within the organization who possess the required skills and experience.
- External recruitment. Create job openings on job boards, professional networks, and recruitment agencies to attract qualified candidates.
- Auditing firms. Consult with professional associations such as the Institute of Internal Auditors (IIA) to connect with certified internal auditors.
- Online platforms. You can search online platforms like LinkedIn or specialized job portals for experienced internal auditors.
- Referrals. Ask for recommendations from colleagues, industry contacts, or professional networks for potential candidates.
Salary comparison
According to Payscale, an internal auditor from the US makes around $64,832/year. To compare, Talent.com reports that internal auditors from the Philippines make around 420,00 PHP/year.
The table below shows a rough breakdown of the annual salaries of an internal auditor according to experience level.
| Junior | Mid | Senior | |
| USA | $50,000 | $65,000 | $87,000 |
| Philippines | P330,000 | P420,000 | P720,000 |
On-site vs. Remote setup for an internal auditor
An internal auditor can work on-site in a physical office or remotely from home, depending on what the company needs.
Working on-site allows for direct interaction with colleagues and access to physical documents and resources. It also provides better monitoring of internal audits, especially those with confidential information.
Remote internal auditors can achieve flexibility and achieve a work-life balance. However, it may be a challenge to access physical documents or conduct on-site inspections.
Internal auditor job description template
You may customize this internal auditor job description template according to your specific hiring requirements.
Furthermore, this list of internal auditor interview questions may serve as a guide to finding the best candidate.
Independent
