Who Is An Internal Auditor And What Do They Do- An internal auditor is an employee of an organization that is charged with the responsibility of ensuring that the organization have accurate accounting all through the year. He/ She acts like an internal policeman watching and investigating to detect any fraud or malicious activity that may be harmful to the company . In this post, we would discuss in great detail who an internal auditor is, how they carry out their role and what you need to become one.
An internal auditor play very crucial role in the success and integrity of a business/ enterprise. It is a very sensitive job role in an organization, which makes the job a high paying one. He/She serves as a secret police watching and monitoring every activity (most especially the financial ones) going on in a company. It is the duty of internal auditor to detect and report fraudulent activities.
They work independently in a company acting as an impartial judge of company’s activities/ behaviours. They play a major role of providing risk management support and ensuring optimum efficiency . These they do by identifying non-compliance, sources of waste and minimizing such.
Majorly, internal auditors deal with financial aspect of a company but they may also get involved in some other aspect of an organization such as operational efficiency, information technology system, employee review process , legal liability, etc.
They sit down to study company’s policies and then compare them with the actual daily business activities . They point out non-compliance and suggest ways to improve methods that will align with company’s goals.
He/she review regularly the company’s operations to ensure that they are rightly implemented to achieve set goals and objectives. They also ascertain that business assets are being adequately and correctly.
They always stay informed of current regulations and legislation. They make the company understand the consequence of non-compliance and also report cases of non-compliance to senior managers.
If you run a business organization that is on the progressive, then you should hire an internal auditor for the following reasons:
An internal auditor is usually employed within a company where he/she carries out auditing activities while an external auditor is an accountant who carry out audits, reviews , etc. He/She works independently of all clients
Internal auditing focus more on checking to see if business operations are going on as they should while external auditing focus more on checking if the financial statements are correctly stated.
Internal audit is an optional role in an organization while external audit is mandatory.
This is needed on the role, as you will be interacting with accountants , co-workers and the management. You will also be writing reports.
You will be dealing with a lot of data and numbers as an internal auditors. So you must be very meticulous even with the smallest details.
Your job roles will involve you dealing with a lot of numbers and data. So you must be sound at basic mathematical operations.
You will need this skill in your job role as internal auditor. After gathering data, you will be needing to make inference and take decisions .
You will need this this carrying this skill in carrying out your auditing activities.
As an internal auditor, you will need to carry out investigation to detect frauds, etc.
Although, it is not really mandatory to have the role of an internal auditor, however, it is advisable . An internal auditor serves as the eyes and ears of the company , monitoring business operations , ensuring compliance and detecting frauds.
There are three major types of audit: external audit, internal audit and internal revenue service audits
External auditors are been hired by the shareholders of a company
An internal auditor ensure that business operations of a company is in compliance with company’s policies and standards and are risk-management compliant too.
An internal auditor reports directly to the audit committee and other designated team to be decided by the company.
Having an internal audit unit or not all depends on the regulatory requirements governing the organization.
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