How to Be Internal Auditor - Job Description, Skills, and Interview Questions

Oct 11, 2021 / 5 Minutes Read / By Albert

How to Become

Professional Organizations

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The lack of an internal auditor can have a serious effect on the operations of a business. Without an internal auditor to provide independent oversight, the risk of fraud, financial mismanagement, and other financial irregularities can increase. Furthermore, without an internal auditor, organizations may become limited in their ability to identify issues within the organization that require corrective action and may miss opportunities for cost savings. It is important for businesses to have an internal auditor in place to ensure that their financial and operational activities are conducted in an ethical, efficient, and accurate manner.

Steps How to Become

Obtain a Bachelors Degree. The minimum educational requirement to become an internal auditor is a bachelors degree. Although a degree in accounting or auditing is preferred, any type of degree that emphasizes analytical and problem-solving skills is acceptable.
Get Certified. Obtaining the Certified Internal Auditor (CIA) certification is one of the best ways to demonstrate your knowledge and skills as an internal auditor. The CIA certification is offered by the Institute of Internal Auditors and requires passing a 3-part exam.
Gain Experience. Most employers require internal auditors to have at least two years of accounting experience prior to being hired. You can gain experience through internships or by working in related fields.
Develop Your Skills. Internal auditors must have strong analytical and problem-solving skills, as well as excellent communication and organizational skills. You can develop these skills by taking additional courses or participating in professional development activities.
Look for a Job. Once you have the necessary qualifications, you can start looking for an internal audit job. You can search online job boards or contact recruiters specializing in accounting and auditing.

Becoming a competent and skilled Internal Auditor requires dedication, hard work, and specific qualifications. First, an individual must obtain the necessary formal education and certifications. This typically includes a Bachelors degree in accounting, finance, or another related field and a Certified Internal Auditor (CIA) certification from the Institute of Internal Auditors.

a professional must have a deep understanding of the International Standards for the Professional Practice of Internal Auditing (Standards) and other auditing and accounting principles. Then, the individual must develop strong professional skills and competencies, such as problem-solving, communication, and critical thinking. Finally, it is important for an Internal Auditor to stay up-to-date with the latest industry trends and best practices.

Once these requirements are met, an Internal Auditor can be considered skilled and competent.

You may want to check Staff Accountant, Accounting Manager, and Revenue Agent for alternative.

Job Description

Ensure compliance with internal policies and procedures
Develop and implement internal audit plans
Identify and assess risk areas
Evaluate the effectiveness of organizational controls
Design and execute testing procedures
Document audit findings and recommend corrective actions
Prepare and present audit reports to management
Monitor implementation of corrective action plans
Participate in special projects and investigations
Maintain updated knowledge of applicable laws, regulations, and standards

Skills and Competencies to Have

Knowledge of generally accepted accounting principles (GAAP) and financial reporting standards
Knowledge of internal control procedures and risk management
Ability to analyze financial data and identify discrepancies
Proficiency with auditing software and tools
Excellent communication and interpersonal skills
Ability to work independently and as part of a team
Detail-oriented, organized, and analytical
Ability to identify areas of improvement and develop solutions
Ability to prioritize tasks and meet deadlines
Knowledge of data privacy and security regulations

A successful Internal Auditor must possess a variety of skills in order to effectively assess and improve organizational processes. Communication skills are essential, as Internal Auditors must be able to effectively explain their findings and recommendations to all levels of an organization. Attention to detail is also critical, as Internal Auditors must ensure accuracy and completeness in their evaluations.

Analytical skills are necessary to understand complex financial and operational data, draw conclusions and make recommendations. Finally, strong research skills are essential, as Internal Auditors need to stay up to date with industry trends, regulations and best practices. These skills combined allow Internal Auditors to accurately identify and evaluate risks and make informed decisions that benefit the organization as a whole.

Payroll Accountant, Credit Controller, and Financial Reporting Analyst are related jobs you may like.

Frequent Interview Questions

What experience do you have in the internal auditing field?
What challenges have you faced in the internal auditing process?
How have you adapted to changes in regulations and laws related to internal auditing?
How do you ensure accuracy and reliability in the data you review?
Describe your experience with data analysis techniques.
How do you evaluate the effectiveness of internal control systems?
Explain your approach to identifying and assessing risk.
What methods do you use to communicate audit results and recommendations?
Describe how you develop relationships with stakeholders and management?
How do you stay up-to-date on changes in the auditing field?

Common Tools in Industry

Audit Software software specifically designed to support internal audits (eg. ACL).
Data Analysis Software software used to analyze large datasets (eg. Tableau).
Risk Assessment Software software used to assess risks associated with internal processes (eg. Riskonnect).
Process Documentation Software software used to document processes, procedures and controls (eg. Process Street).
Project Management Software software used to manage projects and timelines (eg. Asana).
Document Management Software software used to store, organize and share documents (eg. SharePoint).
Collaboration Software software used for collaboration between team members (eg. Slack).
Reporting Software software used to generate reports on audit findings (eg. Microsoft Power BI).
Quality Assurance Software software used to monitor and improve quality assurance processes (eg. ISO 9000).

Professional Organizations to Know

The Institute of Internal Auditors (IIA)
American Institute of Certified Public Accountants (AICPA)
Information Systems Audit and Control Association (ISACA)
The Association of Certified Fraud Examiners (ACFE)
Financial Executives International (FEI)
International Federation of Accountants (IFAC)
Committee of Sponsoring Organizations of the Treadway Commission (COSO)
The International Professional Practices Framework (IPPF)
Project Management Institute (PMI)
Information Systems Security Association (ISSA)

We also have Actuary, Senior Accountant, and Accounts Clerk jobs reports.

Common Important Terms

Internal Audit. The process of independently evaluating and verifying the accuracy of an organization's internal financial and operational processes in order to ensure compliance with applicable laws, regulations, and procedures.
Sarbanes-Oxley Act. A law passed by the United States Congress in 2002 that requires public companies to maintain and report accurate financial information.
Financial Statements. A set of documents used to communicate an organization's financial data, including the balance sheet, income statement, statement of cash flows and statement of changes in equity.
GAAP. Generally Accepted Accounting Principles; a set of accounting rules and standards used for record-keeping and financial reporting purposes.
Risk Management. The process of identifying, assessing and controlling risks associated with an organization's operations.
Compliance. The practice of adhering to applicable laws, regulations, and standards.

Frequently Asked Questions

Q1: Who is an Internal Auditor? A1: An Internal Auditor is a professional who assesses and evaluates an organization's financial and operational activities. They provide independent and objective assessments on the organization's risk management, internal controls, governance processes, and compliance with laws and regulations. Q2: What skills are needed to be an Internal Auditor? A2: To be a successful Internal Auditor, one must possess a variety of skills including analytical thinking, communication, problem-solving, and organizational skills. Additionally, knowledge of finance and accounting, as well as auditing standards, are beneficial. Q3: How does an Internal Auditor add value to an organization? A3: An Internal Auditor adds value to an organization by providing assurance on the adequacy and effectiveness of internal controls, risk management processes, and governance practices. This helps to ensure that the organization is operating efficiently and in compliance with applicable laws and regulations. Q4: What is the primary role of an Internal Auditor? A4: The primary role of an Internal Auditor is to evaluate and monitor the organizational processes, activities, and controls in order to identify potential areas of risk or inefficiency. Internal Auditors also provide assurance that the organization is in compliance with applicable laws and regulations. Q5: What qualifications are required to become an Internal Auditor? A5: Generally, Internal Auditors must possess a bachelor's degree in accounting, finance, or a related field. Additionally, many organizations require Internal Auditors to have professional certifications such as Certified Internal Auditor (CIA), Certified Public Accountant (CPA), or Certified Fraud Examiner (CFE).

Web Resources

What Does an Internal Auditor Do? - University of North Dakota onlinedegrees.und.edu
Homepage | Internal Audit internalaudit.ku.edu
Internal Auditor - The Mico University College themico.edu.jm