What Does an Internal Auditor Do?

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.

Internal Auditor Job Description

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.

Internal Auditor Areas of Expertise

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.

How to Become an Internal Auditor

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.

Internal Auditor Salary and Career Outlook

According 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.

Career Spotlight: Musheer Alambath

Can you explain the difference between an internal auditor and an external auditor?

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.

Why did you become an internal auditor? What initially interested you about the field?

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.

What education (degrees, certifications) did you need or want to pursue this job?

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.

What did a typical day as an internal auditor look like for you? What do you see auditors doing now that may be different?

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.

Was your transition from internal auditing to consulting difficult? How did auditing prepare you for your current role?

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.

What are some of the most rewarding aspects of working as an internal auditor? Some of the most challenging aspects?

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.

What do you think is the most important skill internal auditors need to succeed?

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.

What advice would you give to students considering the job?

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

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.

Questions About the Internal Auditor Job Description