An internal auditor holds a key role in any organization. He provides an independent and objective evaluation of the organization’s financial and operational procedures. He also examines the operational deficiencies and reports to the management on how to improve the overall practices and structure of the organization. An internal auditor works alongside other members of the staff to execute his duties effectively. All auditors are certified by the Institute of Internal Auditors and may work with governmental agencies, financial institutions or corporations. They enjoy some of the best salaries in the United States. They also benefit from the conducive work environment and greater opportunities for career growth and development. This post will cover key responsibilities, salary, educational requirements as well as job outlook for internal auditors.
Internal Auditor Salary
Internal auditors earn relatively good salaries when compared with other professionals. According to the Bureau of Labor Statistics, they earn an average salary of $68,150 per year.
Beginning Salary
Just like any other career, the monthly salary for internal audit professionals largely depends on the level of experience. According to PayScale, entry-level internal auditors earn an average salary of $53,524 per year.
Key Responsibilities
The responsibilities of internal auditors vary, depending on several factors. The key responsibilities include;
• Attending meetings with the audit team to understand the organization’s processes.
• Researching and assessing how well the organization manages risks and recording results using various software.
• Traveling to different sites to meet the staff, collect information and obtain relevant documents.
• Performing risk assessments in key business operations and using the information obtained to guide what to include in the audit report.
• Providing advice to the management and staff regarding compliance with internal regulations.
• Anticipating emerging issues and deciding how to best address them.
• Agreeing on recommendations with staff members and management on how to improve operations.
• Preparing reports to highlight issues the organization might be facing.
Necessary Skills
In order to be effective as an internal auditor, you must possess certain skills. Here is a list of the skills you must have.
• Ability to build strong and healthy relationships. This will help you earn the trust of other staff members and reduce the level of resistance during audits.
• Analytical and critical thinking skills. As an auditor, you must be able to analyze things critically and point out all the hidden issues at a glance.
• Good communication skills. You must be able to communicate effectively, both verbally and in writing.
• A great team player. You must work well with other auditors, management and staff members who belong to your team. And as a member of the team, you must be able to influence, lead and empathize.
Other essential skills include proficient data mining capabilities, sound knowledge of information technology, business acumen and a good understanding of the industry.
Degree and Education Requirements
Anyone who wants to become an internal auditor must have at least a bachelor’s degree in accounting or any other related field, like information technology or finance. Students who enroll in these programs take various classes, such as information systems, accounting, managerial cost and auditing. These courses enable students to understand various concepts, including tax procedures, partnerships, compliance and business ethics. With the increasing demand for advanced auditing, most employers prefer applicants who have master’s degrees over those with bachelor’s degrees. One can pursue master’s degrees in auditing, accounting or finance. The possible courses here include financial accounting, business law, advanced auditing, microeconomics, managerial accounting and financial research. These courses are designed to help students improve their analytical thinking, complex problem-solving, decision-making as well as managerial skills. Most master’s degree programs are available online and may be a good choice for those who are trying to balance between work, family and studies.
Pros and Cons of Internal Auditing
Just like any other career, there are certain challenges internal auditors face. For example, some staff members may not respond positively to your audit request, creating a lot of wrangles in the process. Depending on the size of the organization, you might work for long hours researching and compiling audit reports, which is exhausting. You might also encounter unfavorable working conditions characterized by a lack of enough information and poor IT infrastructure. Apart from these few challenges, internal auditors enjoy good salaries when compared with other professionals. They have huge job prospects and greater opportunities for career development. Along with your audit journey, chances are you will encounter a lot of resistance from the management to accept your audit reports. Your success will depend on how well you can create an environment in which all the managers are receptive of your audit report. You will learn how to deal with stubborn people, how to influence without any authority and how to stay calm and handle difficult situations rationally and objectively. These are critical skills required from every leader.
Getting Started as an Internal Auditor
Once you earn your bachelor’s or master’s degree, you need to look for a job as an internal auditor. It is good you first become certified in one or two designations. You can apply for the Certified Internal Auditor title as well as other specific types of certification, such as Certified Financial Services Auditor, Certified in Control Self-Assessment and Certified Government Auditing Professional. A certification increases your chances of getting employed and qualifying for advanced job positions. Apart from education and certification, you must gain enough work experience. Most employers prefer applicants who have more than three years of experience. You can enroll in an internship program or work for free in community organizations to get enough work experience.
Job Outlook
The demand for internal auditors is likely to be strong for the next 10 years. The Bureau of Labor Statistics projects the demand to grow by 11 percent. This is considered faster than the national average rate. One reason for this impressive growth rate is that many corporations are launching new initiatives for generating revenues. While these initiatives create opportunities, they also invite a lot of risks that internal auditors must help the corporations to assess and monitor. Another thing that will contribute to the demand is that stringent laws have come into effect and companies are looking for auditors to help them avoid financial scandals. Most auditors will be employed in financial institutions, governmental agencies and corporations.
Internal auditing is an important job and one that organizations are willing to pay for all year round. A master’s or bachelor’s degree in auditing, accounting and finance will prepare you for a prosperous career in internal audit. You will also need the right certification as well as specific skills set to succeed.
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