Internal Auditing
Helping companies achieve their goals is a primary focuses of internal auditors. They analyze business operations using a systematic methodology to identify possible organizational problems and suggest viable solutions.
Daily Tasks
The scope of an internal auditor's job is broad. An auditor's responsibilities may include:
- Checking for waste, fraud, and mismanagement within their employer's business operations.
- Ensuring that their employer's procedures comply with government regulations and corporate policies.
- Evaluating compliance, effectiveness, and efficiency.
- Ensuring that records are accurate and controls are adequate by evaluating their employer's internal controls, management procedures, and financial information systems.
- Reviewing controls for their employer's computer systems in order to ensure the integrity of the data.
Internal auditors may accept salaried positions working for public accounting firms, government agencies, and other organizations. Depending on the circumstances of his or her employment, an internal auditor may receive a different title, such as information technology auditor, compliance auditor, or environmental auditor.
According to the U.S. Bureau of Labor Statistics, some internal auditors partner with an established auditor or start a private practice if their own. Successful self-employment requires the internal auditor to develop his or her own client base, possibly hire employees, and become proficient at performing administrative tasks.
Education & Training
Employers generally require that their auditors hold a bachelor's degree in accounting or a related field. However, there are exceptions. Some employers only accept applicants who have earned a master's degree, while others may hire internal auditors who have a combination of postsecondary education and work experience. Some major organizations offer internship programs for internal auditing students. Such programs are great for gaining experience and also networking—many times an intern is hired by the organization where he or she interned.
A prospective employee will likely encounter different requirements for each job opportunity, but possessing one specific credential will be a boon to all internal auditors, no matter where they apply: certification. The American Institute of Certified Public Accountants (AICPA) confers certification upon internal auditors who have successfully completed a four-part exam. This distinction confirms the accountant's proficiency for completing the occupation's fundamental tasks.
Salary & Employment Outlook
According to the U.S. Bureau of Labor Statistics, the median annual earnings of internal auditors is approximately $59,000 with the middle 50 percent earning between $46,000 and $78,000 per year. The highest 10 percent may earn more than approximately $102,000 annually.
According to a survey conducted in 2009 by the National Association of Colleges and Employers, internal auditors who possess a master's degree earned a starting salary of roughly $50,000, while those with a bachelor's degree received a starting salary of approximately $49,000. The almost nonexistent difference in pay between the two degree levels is somewhat surprising, and something to consider when deciding what degree you wish to obtain.
Employment prospects for internal auditors are favorable as an improving economy will drive both the establishment of new businesses and the need for qualified auditors. The U.S. Bureau of Labor Statistics predicts that employment of accountants and auditors will increase by 22 percent through 2018, a much faster growth rate than the average for all occupations. In the next decade, approximately 279,400 new job opportunities will become available to qualified accountants.
Characteristics of a Successful Internal Auditor
Among the key competencies required to become an internal auditor there is a distinct need for excellent attention to detail, precision, and problem-solving skills. As with other accounting specialties, internal auditors should have a facility for working with numbers and they should enjoy combining this expertise with business operations. Trustworthiness is also an important characteristic, considering many internal auditors work with highly confidential material.