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An internal auditor provides a vital service for companies seeking to measure the efficiency of operations. A company may wish to meet certain financial objectives, and internal auditing can help ensure a company is free of fraud and in compliance with laws and regulations. In addition to identifying weaknesses in company operation, an auditor may offer suggestions on solutions for problems that have been identified.
There are Different Types of Auditors
When the average person hears the word “auditor,” the first thing that may come to mind is a tax audit. However, there are different types of auditors that deal with topics as varied as business administration to computer information systems. An internal auditor’s responsibilities include reviewing a company or organization’s standard processes and identifying weaknesses in operation.
An internal auditor may need to travel to different locations to conduct research and gather information about different business operations. The auditor may examine current processes and make recommendations for improvement or gather evidence that reveals inefficiencies in current business practices. Internal auditors may perform risk assessment, as well as offer suggestions based upon emerging techniques and data.
Auditors work at many levels within organizations from entry-level auditors who examine company records to gauge compliance with various regulations to executive-level auditors who oversee entire departments or teams of auditors. An entry-level auditor may find work after completing a bachelor’s degree. Top-level auditors usually require several years of experience beyond an initial college education.
Skills and Abilities of Internal Auditors
An internal auditor will usually have a minimum of a bachelor’s degree in an area like accounting or finance. However, auditors also come from other educational backgrounds like computer information systems and business administration. During school, future auditors gain knowledge in many areas including accrual accounting, internal controls, and industry standards.
Abilities that are valuable for internal auditors include critical thinking skills, problem-solving skills, and high-level communication skills. An internal auditor must be able to take several pieces of data and use them to draw conclusions and share results. Individuals who are natural problem solvers may function well as internal auditors; however, many of the abilities central to an internal auditor’s work can be learned through experience and education.
Pay for Internal Auditors
According to statistics shared by CNN Money, internal auditors earn a median salary of $58,300 with top pay for the profession reaching $83,900. These professionals may work in-house as an internal auditor, or they may operate as an independent contractor or consultant offering auditing services. Job growth over the next ten years is expected to reach 15.7%. Internal auditors in management may earn even higher salaries.
Figures compiled by the Association of Certified Fraud Examiners, Inc. suggest certification for auditors leads to higher salaries than pay as a non-certified auditor. Statistics suggest certification may offer 23% greater compensation over income earned by individuals who aren’t Certified Fraud Examiners. Real work experience is also valuable for internal auditors as it offers opportunities to work in advanced positions as supervisors and managers.
Related Resource: Certified Financial Planner
The scope of an internal auditor’s job may vary significantly based on the industry in which the auditor is performing his or her examination. The priority of an internal auditor is to discover any issues that may negatively impact the success of a business, and their work is essential for helping senior management run an efficient and profitable business.
