Aaron Perkowitz started his career as a fund manager at HNA Group. His duties included creating research reports for the tech and finance sectors. Since then, he has continued to work in research-related roles. Expertise: Finance, accounting.
Updated August 15, 2024
Lauren MastbaumClick to Read Full Biography
Lauren Mastbaum has more than a decade of editing and marketing experience. Creating content in financial services, she worked with clients such as Morgan Stanley, Merrill Lynch, and Wells Fargo. She's also passionate about education and led communi.
Internal auditors have the training and skills to perform detailed auditing. Learn what internal auditors do and what the job requirements are.
Credit: Maskot / Getty Images
Accounting.com is an advertising-supported site. Featured or trusted partner programs and all school search, finder, or match results are for schools that compensate us. This compensation does not influence our school rankings, resource guides, or other editorially-independent information published on this site.
Are you ready to discover your college program?
Credit: Maskot / Getty Images
Internal auditors review and analyze corporate data to ensure legal compliance. External auditors perform similar work, but internal auditors solve problems before exposure to third parties. Individuals who enjoy analytics, math, and communication may enjoy internal auditor positions.
Public companies must perform one external audit annually, but there are no requirements for internal audits. However, most industries employ internal auditors to quickly find and solve potential issues. Internal auditors typically hold full-time roles and communicate with multiple departments. However, a study by Wolters Kluwer found that in-person interactions for auditors have decreased in recent years.
If you are considering an internal auditor career, you can discover position details on the following page, including career expectations, specialization opportunities, and job outlook.
Learn about start dates, transferring credits, availability of financial aid, and more by contacting the universities below.
Auditors provide transparency to corporate stakeholders by conducting audits, creating reports, and recommending control changes. They should act as independent employees to find issues before external auditors and government regulators. These professionals often have access to sensitive data and should understand their employers' needs.
Corporations may require various forms of auditing assistance, including financial, operational, and corporate governance controls. The following list highlights common internal auditor tasks.
Audits allow companies to identify and evaluate risks. Corporate risks can vary but may include inefficient financial controls and other compliance failures.
Internal audit reports can highlight the main deficiencies within a company's control systems. Auditors may use corporate data to create reports, highlight areas for improvement, and present findings to management.
Companies hold regular internal audits to monitor compliance and changes to existing systems. Auditors should keep track of previous recommendations and check their implementation.
Internal auditors monitor resources, including human capital, to ensure maximum asset utilization. Professionals can review staff, recommend methods to retain top talent, and check human resource policies.
Accounting regulations, federal laws, and state laws can change frequently. Professional internal auditors should proactively stay up to date with changes and employ new controls to maintain compliance.
Internal auditors can specialize their work to find employment across various industries. Specialized individuals may understand typical workflows and more easily identify issues. Companies may hire internal auditors with technical or engineering backgrounds in certain circumstances.
Internal auditors specializing in manufacturing should understand accounting and manufacturing principles. Auditors may need to learn manufacturing terms and processes, including advanced product quality planning and statistical process control.
Entry-level roles may require professionals to conduct interviews with staff, audit manufacturing systems, and review financial statements. Manufacturing auditors should be comfortable in loud environments and may need to wear safety equipment.
Professionals with sufficient work experience can pursue senior internal auditor roles. Senior positions may have the final responsibility for reviewing audits and financial controls. These individuals may report directly to senior management.
The software industry experiences rapid changes and must follow specific GAAP software capitalization rules to meet compliance needs. Internal auditors in this field must understand the software development process, requirements for technological feasibility, and current privacy regulations. Software internal auditors may need to review internal classification rules, IP safeguards, and financial statements. These professionals may work on site or remotely.
Companies may offer senior internal auditor positions to experienced auditors. In this advanced role, they may conduct audits on operational, finance, and compliance risks. Senior internal auditors can discuss anomalies directly with management and create follow-up reports.
Corporations generally require an internal auditor to hold a minimum of a bachelor's degree in finance or a degree in auditing. Full-time students can pursue entry-level internal auditing jobs after completing their four-year degrees. Advanced roles may require master's degrees and multiple years of experience.
Internal auditors do not need to possess certification, but certified individuals may have additional career opportunities. A prospective certified internal auditor (CIA) must have at least a bachelor's degree or five years of relevant experience. Successful applicants must complete 1-5 years of work experience before receiving their designation.
Learn the steps toward becoming an internal auditorAccording to the Bureau of Labor Statistics (BLS), auditors and accountants earned a median 2023 salary of $79,880. The BLS also projects auditor employment to grow by 4% from 2022-2032. Internal auditor salary can be influenced by employee location, education, and industry. For example, auditors earned $70,290 annually in Arkansas, while New York auditors earned an average wage of $113,310.
Internal auditor roles can offer job security and growth potential. Companies are likely to continue to use internal auditors to prevent issues with regulators and external auditors. Experienced professionals can continuously specialize their skills to pursue higher positions and salaries.
Internal auditors are employees of an organization whose responsibility is to assist management in achieving the organization's tactical and strategic objectives by identifying and assessing risks that could deter from meeting these objectives.
External auditors are third-party firms hired by the organization to independently review and confirm the accuracy and completeness of the financial statements.
An external auditor's role is primarily limited to the financial risks, while an internal auditor's role would span operational, credit, and market risks facing the organization.
Internal auditing is a field where you must constantly learn and develop yourself to enhance your knowledge and skills and improve your credibility among key stakeholders.
There is no routine, as you could be working on different assignments that could challenge your intellectual ability, problem-solving capabilities, and ability to clearly communicate and present a compelling message. The opportunity to continuously learn and develop attracted me to becoming an internal auditor.
At a minimum, you need a bachelor's degree, preferably with coverage of business subjects, economics, and finance. A master's degree in business or finance is an added advantage. A certification in internal audit, such as certified internal auditor, would help you understand the intricacies of being an internal auditor and help you succeed in the job.
I started my career as a trainee internal auditor after completing my bachelor's and master's in business, specializing in finance. I went on to do my CIA and [certified public accountant] while working as an internal auditor.
There is no typical day for an internal auditor as you would be working on different audits with different stakeholders and in different geographies depending on the company.
You are always meeting new people and helping them manage their risks effectively, sharing the best practices you have seen across the organization, and convincing them to take positive action to meet its objectives.
During my initial days as an internal auditor, I was in a different city four out of five days a week. As soon as I return home after an engagement, I will prepare to head out on another one.
Auditors now would be doing the same but more activities virtually than in person. Also, the tools they use to assess risks and provide insights to stakeholders would be more advanced. Internal auditors increasingly use data analytics and artificial intelligence to perform their analysis and extract meaningful results.
“Organizations increasingly turn toward internal auditors to provide consulting services, given the depth of knowledge they possess and their unique skill sets.”— Musheer Alambath
My transition was smooth, though there were unique aspects within consulting I needed to learn. Internal auditing and consulting have a lot of similarities. Internal auditing has evolved over the years to be more of a consultant than a "document checker." Organizations increasingly turn toward internal auditors to provide consulting services, given the depth of knowledge they possess and their unique skill sets.
Internal auditors' focus area has seen a significant shift from being hindsight-oriented to providing foresight, and that's how they are increasingly becoming part of strategic decision-making within organizations. With this shift, internal auditors today are being seen as in-house consultants and business partners.
Continuous learning, working on complex problems, exposure to different levels of management, being an integral part of an organization's growth journey, and a non-monotonous working day are the most rewarding aspects.
One of the biggest challenges is educating people and trying to change the negative perception of the words "audit" and "auditor," where people think the primary function of an internal auditor is to find mistakes in their work.
Be in a learning mode always, not under the assumption that you know everything or are an expert. This would help you absorb new information, gain insights, and add more value to the organization.
Research emerging topics and be at the forefront of the latest trends. An internal auditor's greatest assets are their knowledge and the ability to turn that knowledge into valuable insights for the stakeholders.
Musheer Alambath is a director within KPMG's consulting practice and a global financial services professional. He started his career as an internal auditor, and in his last role as vice president of group internal audits for an international bank, he was responsible for managing global teams across the network, which extends to 18 countries over 150 locations.
Alambath is a Sloan Fellow at the Stanford Graduate School of Business and was a keynote speaker at Stanford University's LOWkeynotes on an alternative financial solution to end global poverty.
Having worked on banking sector projects across four continents, he is passionate about making a difference for 2 billion people globally who currently have no access to financial services, using in-depth understanding and knowledge of financial products and services across different markets. He has presented his ideas through a TEDx talk on improving access to financial services using technology.
Musheer is a CIA and CPA and has served on the board of Institute of Internal Auditors.
Internal auditors examine finances, create reports, and follow up with recommended changes. Auditors should stay informed on compliance law, monitor changes in regulations, and communicate issues with relevant departments.
Internal audits can be used to solve internal issues before they become public. These audits can identify non-standard accounting entries, insufficient financial controls, and lack of compliance with laws.
Internal auditors earned a median salary of $79,880 in 2023, according to the BLS. Auditor salaries can vary based on location, experience, and education. Professionals can pursue CIA designations to increase their potential career paths and earning power.
Yes -- individuals who like accounting, logic, and analysis may enjoy careers as internal auditors. Successful professionals can learn new skills, pursue promotions, and increase their salary over time.
Search top-tier programs curated by your interests.
Let us know what type of degree you're looking into, and we'll find a list of the best programs to get you there.
