Why Accountants Might Prefer Working as Internal Auditors
Most people don't really know the difference between internal and external auditing. They think that all accounting jobs are exactly the same. While they're similar, there definitely are some differences, however. Let's take a look at why you might prefer being an internal auditor to have a job as an external auditor.
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First, you need to know what internal auditing is. An internal auditor performs objective, independent assurance and consulting activities to improve the operations of an organization and add real value. This can help the organization accomplish its objectives more effectively, since the process is disciplined and systematic, and can evaluate how effective various processes are, including control, risk management and governance.
Internal auditors will advise members of management on whether or not major operations performed by a firm have sound methods of managing risk and good internal controls, or whether these need some work. This person's goal is making sure that the company can comply ethically with the various guidelines, procedures and policies. An internal auditor has to have good integrity, like anyone in an accounting field, and should make sure that they're being a credit to the profession at all times.
Both internal and external auditors need to be objective and independent in their evaluations. Developing a particular loyalty or accepting gifts could make it hard to do your job correctly. An internal auditor also needs to be willing to keep confidential information found during the audit and should not release it except in the event of a professional obligation. Auditors also have to be competent. That means only taking on responsibilities they can actually accomplish. The good news is that almost everyone develops their skills significantly over time.
As an internal auditor, you might be required to develop the organization's internal audit plan, make sure it's in compliance with certain regulation, conduct interviews with employees and management, prepare summaries and recommendations based on your findings, and implement quality assurance systems. Unlike external auditors, you're likely to work for the company you audit, making it easy to get to know the systems. You'll have one continuous employer, and full and free access to the company's records, audit committee, personnel, property and other resources, making it easier to remedy the problems.
In general, internal auditing is best for people who like to fine tune a system. If you want to have access to everything within a company and be able to make sure it's operating correctly, this is the right job for you. An external auditor is more likely to need to bounce between companies and will see many different systems over the course of his or her career, but won't have the stability that comes with internal auditing.
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