Internal Auditor Job Description
An internal auditor is responsible for reviewing and assessing an organization’s operational and financial processes and procedures to ensure compliance, efficiency, and effectiveness. This role often involves identifying and managing risk, ensuring compliance with laws and regulations, and helping to maintain accurate financial reporting and control.
Here’s a general job description for an internal auditor:
Job Title: Internal Auditor
Responsibilities:
- Perform and control the full audit cycle, including risk management and control management over operations’ effectiveness, financial reliability, and compliance with all applicable directives and regulations.
- Determine internal audit scope and develop annual plans.
- Obtain, analyze, and evaluate accounting documentation, previous reports, data, flowcharts, etc.
- Prepare and present reports that reflect the audit’s results and document the process.
- Act as an objective source of independent advice to ensure validity, legality, and goal achievement.
- Identify loopholes and recommend risk aversion measures and cost savings.
- Maintain open communication with management and the audit committee.
- Document process and prepare audit findings memorandum.
- Conduct follow-up audits to monitor management’s interventions.
- Engage in continuous knowledge development regarding sector rules, regulations, best practices, tools, techniques, and performance standards.
Requirements:
- Proven work experience as an Internal Auditor or Senior Auditor.
- Advanced computer skills on MS Office, accounting software, and databases.
- High attention to detail and excellent analytical skills.
- Ability to manipulate large amounts of data and compile detailed reports.
- Sound independent judgment.
- BS degree in Accounting or Finance.
- Professional certification like Certified Public Accountant (CPA), Certified Internal Auditor (CIA), Certified Information Systems Auditor (CISA) is desirable.
Please note that this is a generalized job description. The specifics might vary based on the nature of the organization, the industry, the complexity of its operations, and other factors.
Example of an Internal Auditor Job Description
Meet Lisa, an internal auditor at XYZ Pharmaceuticals, a mid-sized pharmaceutical company.
Example of Lisa’s Work as an Internal Auditor:
Recently, XYZ Pharmaceuticals has implemented a new automated system for tracking and managing its extensive inventory of pharmaceutical ingredients and finished products. The system was costly to implement and is critical to the company’s operations.
Lisa’s task as an internal auditor is to conduct an audit of this new system to ensure it is functioning as intended, the data it produces is accurate and reliable, and that it’s been effectively integrated into the company’s operations.
- Planning: Lisa starts by planning her audit. She identifies key functions of the inventory management system that need to be reviewed, such as how inventory quantities are tracked, how data is recorded and stored, and how the system interfaces with other financial systems at XYZ Pharmaceuticals.
- Data Gathering: Lisa interviews individuals who use the system daily—this includes warehouse staff, supply chain managers, and financial analysts. She observes the system in operation and reviews user manuals and system specifications.
- Data Analysis: Lisa tests a sample of transactions in the system to ensure they are accurately recorded and reflected in the system’s reports. She checks to see if system access is appropriately restricted to prevent unauthorized changes to inventory data. She also validates that the system’s reports are accurately incorporated into XYZ’s overall financial statements.
- Reporting: Lisa finds that the new system is generally functioning well, but she discovers a flaw in how it records transfers of inventory between warehouses, which could lead to inaccuracies in inventory counts. She also finds that access controls could be strengthened to further reduce the risk of unauthorized changes.
- Follow-up: Lisa writes a report detailing her findings and presents it to senior management. The report outlines the issues she discovered and provides recommendations for improvement. Management agrees to implement her recommendations and asks Lisa to conduct a follow-up audit in six months to ensure the issues have been addressed.
Through her work, Lisa helps XYZ Pharmaceuticals improve its operations, reduce risks, and ensure the accuracy of its financial statements. This is an example of the valuable role that internal auditors play in organizations.
