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

Mar 4, 2022 / 5 Minutes Read / By Albert

How to Become

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Air pollution has been a major cause of concern for many years, leading to an increase in regulatory auditing as a way to ensure companies are complying with environmental regulations. Regulatory auditors are responsible for assessing the environmental impact of an organization, and any potential legal consequences of non-compliance with existing regulations. They help to ensure organizations are meeting their environmental standards, from reducing water and air pollution, to properly disposing of hazardous materials. This helps to protect the environment, public health, and safety, and prevent companies from facing hefty fines or other penalties for non-compliance.

Steps How to Become

Obtain a Bachelor's Degree. The minimum educational requirement for becoming a regulatory auditor is a Bachelor's degree in accounting, finance, economics, or another related field.
Gain Professional Experience. Most employers prefer regulatory auditors who have several years of experience in the audit field. Consider working as an intern at an accounting firm or other financial organization to gain experience.
Obtain Professional Certification. The most common professional certification for regulatory auditors is the Certified Regulatory Auditor (CRA) designation offered by the Institute of Internal Auditors (IIA). This certification requires applicants to pass an exam and meet other eligibility requirements.
Consider Pursuing a Master's Degree. A Master's degree in accounting, finance, or another related field may increase your employability as a regulatory auditor. Many employers prefer to hire auditors with advanced degrees.
Stay Up-to-Date. Regulatory auditing is constantly changing as government regulations evolve and new technologies are introduced. Staying up-to-date on changes in the field is essential for regulatory auditors, who must be knowledgeable about current laws and regulations.

The effectiveness of a Regulatory Auditor depends on their ability to identify key areas of risk and their ability to efficiently audit those areas. To ensure ideal and efficient auditing, the auditor should have an in-depth understanding of regulatory requirements, industry trends, and the business operations being audited. the auditor should have a clear understanding of the types of evidence needed to support their audit findings, as well as the necessary skills to interpret information accurately.

Regular communication between the auditor and company management is also essential for successful auditing, as this helps to identify any areas of non-compliance and to ensure that corrective actions are taken. by having the right knowledge and skillset, as well as effective communication with management, a Regulatory Auditor can ensure that all regulatory requirements are met and that companies are able to operate in a compliant manner.

You may want to check External Auditor, Forensic Accounting Auditor, and Senior Health Care Compliance Auditor for alternative.

Job Description

Conduct financial, operational and compliance audits of financial services firms and organizations to ensure adherence to regulations and standards.
Review and assess internal processes, controls and procedures to ensure compliance with regulations.
Analyze and interpret financial documents, reports and other records related to the organization and regulation.
Identify and communicate audit and compliance issues to management.
Develop recommendations for corrective action and improvement.
Develop audit plans, scope and objectives for assigned audits.
Prepare audit workpapers, schedules, summaries and other reports as necessary.
Train, mentor and support junior team members in completing their assigned tasks.
Monitor changes in laws, regulations and industry standards to ensure ongoing compliance.
Work closely with other departments to promote an effective audit process.

Skills and Competencies to Have

Thorough knowledge of applicable regulatory requirements, laws, and policies.
Ability to interpret complex regulatory documents and requirements.
High level of analytical and problem-solving skills.
Excellent oral and written communication skills.
Ability to work collaboratively and effectively with a variety of internal and external stakeholders.
Ability to effectively manage multiple projects simultaneously.
Ability to assess risk and develop strategies to mitigate risks.
Knowledge of accounting principles and auditing techniques.
Working knowledge of data analysis tools and software such as Microsoft Excel, Access, etc.
Knowledge of financial markets, products, and services.
Ability to develop audit programs and perform audit testing.
Ability to provide clear and concise reports on findings, conclusions, and recommendations.

Regulatory auditors must possess a range of skills in order to be successful. First and foremost, they need to be excellent communicators. They must be able to explain complex concepts to clients and colleagues in a clear and concise way.

They should also have an in-depth understanding of their industry and the regulations that govern it. they should have strong analytical skills to help them assess financial and operational data and identify areas of risk. Finally, they must also be knowledgeable about the auditing standards and best practices which will help them to ensure that all procedures are followed correctly.

All these skills combine to make a successful regulatory auditor, who is able to protect the interests of the organization and ensure that all regulations are properly adhered to.

Senior Compliance Monitoring Auditor, Information Systems Auditor, and Quality Auditor are related jobs you may like.

Frequent Interview Questions

What experience do you have conducting regulatory audits?
How do you stay up-to-date with the latest regulatory requirements?
What challenges have you faced when managing multiple audit engagements at once?
Describe a time when you identified a significant regulatory compliance issue.
How do you handle difficult conversations with stakeholders about non-compliance?
What strategies do you use to ensure accuracy and thoroughness when conducting an audit?
Have you ever had to explain your audit findings to upper management or a board of directors?
How familiar are you with the various computer-assisted audit techniques (CAATs) used in regulatory audits?
How do you ensure that confidential information is handled securely?
What methods do you use to build trust and rapport with auditees?

Common Tools in Industry

Risk Management Software. This software enables organizations to identify, assess, monitor and manage their risks on an ongoing basis. (eg: Microsoft Dynamics Risk Management)
Compliance Management Software. This software enables organizations to create, monitor and enforce compliance with regulatory requirements. (eg: ComplianceBridge)
Data Analytics Software. This software helps organizations to analyze large sets of data and identify trends and patterns that could indicate potential regulatory issues. (eg: Tableau)
Document Management Software. This software enables organizations to store and manage documents related to regulatory compliance. (eg: DocuSign)
Audit Management Software. This software enables organizations to plan, document and report on audit findings. (eg: Deloitte Audit Insights)
Internal Control Software. This software enables organizations to monitor internal controls and identify any weaknesses in the system. (eg: SAP Internal Control System)

Professional Organizations to Know

American Institute of Certified Public Accountants (AICPA)
National Association of State Boards of Accountancy (NASBA)
Institute of Internal Auditors (IIA)
The Institute of Chartered Accountants in England and Wales (ICAEW)
International Federation of Accountants (IFAC)
The Institute of Chartered Accountants of India (ICAI)
Canadian Institute of Chartered Accountants (CICA)
European Federation of Accountants (EFAA)
Institute of Certified Management Accountants (ICMA)
Association of Certified Fraud Examiners (ACFE)

We also have Network Security Auditor, Operational Auditor, and Senior Information Systems Auditor jobs reports.

Common Important Terms

Regulatory Compliance. The process of ensuring that an organization, institution, or individual is adhering to relevant laws and regulations.
Risk Assessment. The process of analyzing and evaluating the potential risks associated with a particular activity or process.
Financial Auditing. The process of inspecting and verifying the accuracy of financial records and statements.
Internal Controls. The policies and procedures used within an organization to provide reasonable assurance that its objectives are achieved.
Sarbanes-Oxley (SOX) Act. A federal law that aims to protect investors from fraudulent financial activities within publicly traded companies.
Securities and Exchange Commission (SEC). The government agency responsible for enforcing federal securities laws and regulating the securities industry.

Frequently Asked Questions

Q1: What is a Regulatory Auditor? A1: A Regulatory Auditor is an independent professional who evaluates the compliance of an organization with applicable regulations. Q2: What types of organizations require Regulatory Auditing? A2: Regulatory Auditing is typically required for organizations in the financial services, healthcare, and energy industries, as well as for publicly traded companies. Q3: Who does a Regulatory Auditor report to? A3: Regulatory Auditors typically report to the board of directors or executive management of an organization. Q4: How often are Regulatory Audits conducted? A4: Regulatory Audits are typically conducted annually, or more frequently as necessary. Q5: What is the purpose of a Regulatory Audit? A5: The purpose of a Regulatory Audit is to ensure that an organization is in compliance with applicable regulations and to identify any gaps or opportunities for improvement.

Web Resources

Auditor Regulation and Liability Under U.S. Securities Laws www.pli.edu
Regulatory oversight and auditor market share www.academia.edu
MIT Sloan study finds positive impact of auditor regulatory oversight mitsloan.mit.edu