A certified internal auditor® works in a company’s audit department. An internal auditor is concerned with internal operations, whereas an external auditor is concerned with the financial operations of another company. Passing an exam sponsored the Institute of Internal Auditors qualifies a person as a certified internal auditor® (CIA®). In an industry that is largely unregulated in most places, certification confers professionalism and credibility.
The internal audit function is distinct from the accounting department, allowing auditors to work independently on their tasks. Internal auditors do not perform any accounting or management functions because it is a tenet of any type of audit that a person cannot audit his or her own work. They examine current financial and management operations for weaknesses in internal controls, issues with process effectiveness or efficiency, and issues with financial data reliability.
A certified internal auditor® follows an audit program to ensure that all important aspects of an audit are covered. An audit program is a list of items and, in some cases, questions that must be reviewed and answered in order to achieve the audit goal. Audit managers frequently create or review audit programs to ensure that employees stay on track. Certified Internal Auditors (CIAs) and Certified Public Accountants (CPAs) are common credentials held audit managers (CPAs).
A certified internal auditorjob ®’s entails interviewing employees as well as reviewing transactions to ensure that processes and procedures are being followed. When reviewing invoices paid, an internal auditor, for example, looks for signatures to ensure the purchase was properly authorized. An internal audit job could entail looking into fraud or a strange situation. It can cover a wide range of topics.
An audit team may issue reports to management that comment on findings and make recommendations. The reports are confidential, and they detail any issues that have arisen, their impact, and recommendations for resolving the issues. Following the audit team’s presentation of the findings in the report, management must sign off on the reports, agreeing or disagreeing with the findings and recommendations.
Internal auditors work for large corporations and are an important part of the management team. Their work has a wide range of applications, and it can be very interesting. Internal auditors frequently travel outside of the United States as part of their job. To improve their credibility and professionalism, many internal auditors choose to become certified internal auditors®.