what is an internal auditor?
As an internal auditor, you are accredited to assess and evaluate the accuracy of an organization's financial accounts. You also guarantee tax compliance and validate the business actions of your employer to ensure the company is running smoothly.
In an advisory role, you assist your employer in identifying cost-saving measures and risk-aversion methods that improve business success. As an economic specialist, you assess a company's financial health and provide recommendations to improve revenue and minimize expenses.
All companies require an internal or external auditor to assess financial soundness and ensure compliance with industry regulations. Internal auditors also work for the government and public corporations to ascertain the proper handling of funds and uncover embezzlement and misappropriation schemes.
In the private sector, internal auditors act as consultants who ensure financial records mirror the state of an organization. As an internal auditor, you also provide unbiased evaluations and recommend ways to improve a company's current practices and processes.
Generally, your objective as an internal auditor is to assist companies in improving operational productivity, mitigating risk, and ensuring compliance. You can work in the banking or finance sector and in industries as diverse as manufacturing and production.
Would working as an internal auditor suit your analytical and math skills? Then read on to find out what competencies and qualifications you need to thrive in an internal auditor role.
internal auditor jobsaverage internal auditor salary
According to Job Bank, the average salary of an internal auditor in Canada is $103,464 per year, which translates to $53.06 per hour. When you are new to the role, you start with a salary of $82,500 annually. The most experienced internal auditors make up to $109,067 per year.
what factors affect the salary of an internal auditor?
Your earnings as an internal auditor depend on your experience and qualifications. For instance, a certified internal auditor earns a higher salary than an auditor who hasn’t completed certification courses. Having extensive experience also boosts your earnings as an internal auditor. With experience, you can negotiate a higher salary due to your expertise in the role.
The size of the company also influences your earnings. Working in a large company boosts your salary due to the complexity of your tasks. A large organization also has unlimited resources and can afford to pay higher salaries. When you work in a small company, you handle less complex transactions. With the limited resources in smaller companies, you can expect lower earnings.
types of internal auditors
As an internal auditor, you can specialize in any of these three internal audit areas:
- compliance internal auditors: as an internal auditor, you investigate the adherence of systems or procedures to policies and regulations. This includes evaluating an accounting process or system to ensure it meets the plans and adheres to company policies.
- operational internal auditors: as an internal auditor, you can focus on the operations of the company. You evaluate the internal controls of procedures and systems and find ways to improve productivity. Your job is to improve the efficiency and effectiveness of an operation.
- financial internal auditors: as an internal auditor, you examine the financial records of the company. Your job is to ensure the financial statements accurately represent the company's position.
working as an internal auditor
Becoming an internal auditor is an exciting career with diverse responsibilities and work environments. Read on to find out how you spend your time as an internal auditor and whether the role might be something you enjoy.
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what does an internal auditor do?
Your daily tasks and responsibilities vary depending on the company you work for and your area of specialization. Some of the common duties of internal auditors include:
- examining accounting records: as an internal auditor, your primary role is to analyze and review accounting records to ascertain their accuracy and determine the financial status of a company. You also objectively assess operational business activities to identify errors and departments with additional expenditures.
- creating reports: after investigating accounting records, you prepare a detailed report on audit findings and recommendations. Your report should also include asset utilization assessments and solutions for improving revenue.
- detecting fraud and illegal activities: aside from checking the financial health of an organization, you investigate fraud and embezzlement of funds. You can also help companies with compliance issues and adherence to management policies. Your audit investigates the financial activities to ensure they conform to the proper accounting preparation procedures and government regulations.
- monitoring risks: your job is to gauge a company's financial risk and develop recommendations to improve its financial position. You investigate processes that consume a lot of resources without producing revenue.
- determining audit triggers: as an internal auditor, you create an inventory of a company’s practices, processes and policies. From the policies, you can make audit trigger suggestions to the management. You will easily monitor discrepancies in financial records by setting audit triggers.
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work environment of an internal auditor
Whether you are an internal auditor in the public or private sector, you work in an office environment. When you work in a consultancy firm, you work from the client's place of business.
You can complete all your work from your desk, but sometimes you travel to meet clients and managers. Most auditors work individually, but in large corporations, you might work with a team of internal auditors to complete tasks on time. If you prefer a hybrid work environment, many companies allow auditors to work from home or remotely.
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who are your colleagues?
As an internal auditor, you work alongside accountants, business analysts and financial accountants. You also collaborate with business systems analysts, data analysts and operational managers. Since you handle the company finances, you work closely with finance managers, finance assistants and financial controllers.
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internal auditor work schedule
As an internal auditor, you work a full-time schedule of 39 hours weekly. Part-time positions are also available in some companies.
Sometimes, you work overtime in the evening and on weekends during important times of the year. For instance, in tax season and at the end of a budget year, auditors are busy and work long shifts to complete audits on time.
Sometimes, you travel to meet clients and visit subsidiaries of your employer. If you like meeting new people or the occasional change of scenery, working as an auditor can offer you the chance to do so.
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career opportunities as an internal auditor
Internal auditing is a growing career option fuelled by the growth of businesses and the changing tax and regulatory sector. To succeed in auditing, adopting technological advancements that enable you to take up complex responsibilities is important. You can also specialize in the available areas and expand your experience to increase your job prospects.
Internal auditing is a gratifying career due to its clear career progression from beginner to executive positions. As an experienced internal auditor, your qualifications can propel you to a management or consultant role. When you work in audit firms, build your skills to progress your career and become a partner in the consultancy firm.
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advantages of finding a job as an internal auditor through randstad
Working with Randstad offers you a range of benefits.
- Always a contact person you can fall back on and ask for help from
- Many training opportunities
- A range of jobs in your area
internal auditor skills and education
Some of the educational requirements for becoming an internal auditor include:
- bachelor’s degree: pursuing a bachelor’s degree in accounting or business administration is necessary to become an internal auditor. Aside from university education, complete a professional training program from the Institute of Chartered Accountants. In some provinces, you should also complete the Uniform Evaluation and two years or 30 months of on-the-job training. Aside from becoming a Chartered Professional Accountant (CPA), you can also complete the Certified Management Accountants of Canada course to become an internal auditor.
- licensing and certification: you should register with the provincial Institute of Chartered Accountants. For instance, in Alberta, you need to be a member of the CPA Alberta. To work as an internal auditor in British Columbia, you should be a member of the Chartered Professional Accountants of British Columbia.
competencies and characteristics of internal auditors
As an auditor, you should combine your qualifications with hard and soft skills to thrive in your career. Some of the most important skills include:
- analytical skills: your job is to identify issues in documentation and provide effective solutions. To review the financial records and analyze company processes, you need exceptional analytical skills for investigating and interpreting the information at hand.
- organization skills: in auditing, you work with a range of financial records, and you sometimes maintain documents from multiple clients. Strong organizational skills help you sort documentation and keep paperwork to provide accurate results.
- communication skills: as an auditor, you work closely with clients and the upper management. Therefore, it is crucial to have good communication skills. You should understand your client's needs and concerns to provide solutions. Sometimes, you present your audit findings or write reports, which requires proper communication skills.
- math skills: in auditing, you spend most of the day crunching numbers and analyzing records to interpret facts and figures. If you combine math skills with your data analysis proficiency and accounting skills, you will be successful in your auditing career.
- attention to detail: mistakes in auditing have severe consequences, including fines and legal actions. When examining accounting records, you should be attentive to details to help your clients avoid penalties and liabilities.
FAQs
Here, you will find the answers to the most frequently asked questions about the profession of an internal auditor.
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what is the main responsibility of an internal auditor?
As an internal auditor, your main responsibility is to evaluate financial documents and company records. You check for compliance issues or data inaccuracies and identify risks. You also detect fraud and set the audit triggers for organizations.
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are internal auditors in demand in Canada?
Internal auditors ensure compliance with government regulations and are always in demand. With your knowledge of managing internal controls, you can help organizations improve efficiency in production processes.
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how much does an internal auditor make in Canada?
As an internal auditor, you earn an average salary of $103,464 per year. You start with a salary of $82,500 annually in an entry-level position. The most experienced internal auditors make up to $109,067 per year.
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is internal auditor a stressful job?
Due to the complexity of your duties, working as an internal auditor can be stressful. However, with good organization and time management, you reduce stress levels.
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what makes a good internal auditor?
A good internal auditor should have exceptional analytical skills since the role involves investigating financial statements. Your attentiveness to details helps you identify issues in various documents.
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how do I find a job as an internal auditor?
Finding a job near you as an internal auditor is easy. Search our job offers. Have you found what you're looking for? Then submit your application using the ‘Apply’ button top right on the page. No jobs available right now? Send us your resume and we'll pass it on to a recruiter who will contact you if an opportunity opens up for you.
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