What an Internal Auditor Does: A Day in the Life
Do you want to know what an internal auditor does on a day-to-day basis? Internal auditors are responsible for assessing the effectiveness of a company’s internal control process. They identify areas where improvements can be made, and work with department staff to resolve any identified issues. In this blog post, we will take a closer look at what an internal auditor does and how their day is structured.
What Is An Internal Auditor?
An internal auditor is an individual who is responsible for assessing the effectiveness of a company’s internal control process. Internal auditors generally identify a department, gather an understanding of the current internal control process, conduct fieldwork testing, follow up with department staff about identified issues, prepare an official audit report, review the audit report with management, and follow up with management and the board of directors as needed to ensure recommendations have been implemented.
How Do They Add Value?
Internal auditors play a vital role in ensuring that a company is operating efficiently and effectively. To that end, they provide an independent, objective assessment of the company’s internal control process and make recommendations for improvements. By doing so, they help to protect the interests of shareholders and other stakeholders.
What Skills Do You Need?
Internal auditors typically have a bachelor’s degree in accounting or finance. In addition to having the right educational background, data analysts need to have the following:
- Analytical skills: be able to analyze data and tell stories to relay risks and opportunities to leadership
- Attention to detail: be precise and accurate when analyzing data in order to identify trends and potential issues
- Communication skills: be able to communicate effectively with management in order to provide insights and recommendations
- Accounting Knowledge: have a background on US GAAP, Sarbanes Oxley, and the related requirements of each
- Financial/Operational literacy: understand key concepts related to finance and accounting in order to effectively audit a company’s processes
- Bonus: Digital Finance is becoming increasingly important for all audit and finance professionals
If you possess the skills mentioned above, then you are well on your way to finding yourself in one of these roles.
A Day In The Life Of An Internal Auditor
An internal auditor’s day is never the same. Every day brings new challenges and opportunities to help the company make sound decisions. However, there are a few tasks that are typically part of an auditor’s daily routine:
- Planning audits and determining testing strategy
- Conducting fieldwork in order to test the effectiveness of the company’s internal control
- Meeting with management to discuss recent findings and upcoming projects
- Working with Enterprise Resource Planning (ERP) systems to analyze data to identify trends and potential issues
- Preparing reports and presentations for management
Let’s Recap
Internal auditors play a vital role in ensuring that a company is running smoothly and effectively. They work with management to assess the company’s internal control process and make recommendations for improvements. Their goal is to protect the interests of shareholders and other stakeholders.
Every day is different for an auditor. However, they typically spend their days planning audits, conducting fieldwork, meeting with management, and preparing reports. Internal auditors need to have strong analytical and communication skills, as well as a background in accounting.
If you’re interested in a career as an internal auditor, then focus on developing the skills and knowledge mentioned about. If you already have those skills, you are well on your way!
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