An internal auditor is responsible for reviewing a company’s processes, identifying anomalies, and reporting any issues found to management. The outcome of this work should be a series of process improvements and adjustments to control systems, so that a business operates more efficiently and effectively, while mitigating risk.

Internal Auditor Responsibilities

The key responsibilities of an internal auditor are as follows:

Conduct financial audits. Examine financial statements, transactions, and records for accuracy, and ensure compliance with GAAP, IFRS, and other accounting standards.
Conduct operational audits. Review operational procedures to improve efficiency and cost-effectiveness.
Perform IT audits. Assess IT systems, data security, and cybersecurity policies, and identify weaknesses in network security and system access controls.
Review controls. The internal auditor examines control systems to see if the controls are being followed, and if the controls are sufficient to mitigate a variety of risks.
Conduct policy compliance reviews. The internal auditor examines employee compliance with company policies in a variety of areas, to see how closely they are adhering to the policies.
Investigate fraud allegations. The internal auditor investigates all fraud allegations, and compiles evidence regarding his or her findings, which may be used in court.
Communicate results. The internal auditor writes reports regarding all issues found, and includes recommendations for how to make improvements that will mitigate or eliminate those issues.
Monitor implementation of recommendations. Track progress on corrective actions taken by management.
Support external audits. Work with external auditors by providing necessary documents and explanations.

Desired Qualifications

A bachelor's degree in accounting, as well as excellent analysis and presentation skills. Should also have excellent report-writing skills. Must be able to work with little supervision. The Certified Internal Auditor certification is preferred.

Related AccountingTools Course

Internal Auditing Guidebook

Working Conditions

The internal auditor generally works in an office environment, but is expected to be highly familiar with all production operations, and to regularly visit all significant company operations.

Supervises

None

Commentary

This position requires a high level of interpersonal skills, since internal auditors are expected to constantly interact with department personnel throughout the company. The internal auditor can act as an in-house consultant for department managers, providing them with valuable advice regarding how to improve their operations.