Advantages of an internal auditor: to be or not to be?
In recent years, much has been said about the role of the internal auditor and the importance of internal audits for modern business. What are the main reasons for this popularity of this relatively new profession, and the main advantages for those who are considering choosing or changing professional priorities?
Company Value
The work of the internal auditor is far from just accounting and control. His capabilities and professional skills cover many related areas: finance, financial and economic analysis, accounting and reporting, information technology and much more.
On the one hand, this makes it easier for financiers, economists, accountants to switch to the sphere of internal audit, and on the other hand, it makes the internal auditor a specialist in a wide field, a kind of diagnostician, which is of great value for each company.
Therefore, the possession of internal audit technologies is also very important for top managers and owners of enterprises: after all, it is priceless for them to have full control of both external and internal business risks!
Main functionality
TOP-3 tasks, the solution of which is usually assigned to the modern internal audit service, is as follows:
1. Assistance in risk management
The leaders of the companies participating in the latest Price Waterhouse Coopers study noted that the risk profile faced by their business has changed, and only less than half of those surveyed were satisfied with the level of risk management in their company.
It is the position of the internal auditor that is ideal for raising this level: he has knowledge of the company as a whole, analytical skills, owns data collection and analysis methods, and at the same time has the opportunity to look at the company’s activities “from above” and identify risks that narrow specialists may not notice.
We can say that the internal audit service by Audit Company in Dubai today is becoming not only a legal requirement, but also the most effective risk management tool since it allows you to analyze risks and their consequences and develop response measures proactively, and not when the thunder has already struck.
2. Accounting and control
Having sufficient competencies and independence, the internal audit service becomes a guarantor of the safety of not only the company's tangible assets but also its reputation when it comes to identifying and preventing corporate fraud.
3. Advisory assistance to management personnel
In addition to professional competencies, the internal auditor has extensive knowledge about the activities of a particular company, so his assistance is as prompt and effective as possible, which is often crucial.
As a rule, top management most often needs help in collecting, processing and analyzing various data, requirements of legislative and regulatory acts, and risk management. If the company does not have an internal audit service, then the top manager, owning the knowledge and skills of the internal auditor, becomes truly priceless for her.
Authority
The main factor that enhances the role of internal audit is the desire of owners (interested parties) to see internal auditors at meetings of the board of directors. Thus, in fact, the internal audit service represents the interests of business owners in operational management, which, of course, puts it in a special position.
Independence and Security
One of the main tenets of the profession of internal auditors is its independence. Functionally, the internal audit service is subordinate to the Audit Committee as part of the board of directors or another body representing the interests of business owners - such a control principle is laid down in the International Standards for Internal Auditing.
Thus, this service is completely freed from influence by senior management personnel and can independently make decisions in its area of responsibility.
It is believed that internal audit is the third line of business protection, the task of which is to check and control the first and second lines, which makes the internal auditor almost a guardian angel of the company!
Career prospects
Specializing in an internal auditor does not promise an easy way. It requires significant investments - a good internal auditor has extensive knowledge and practical experience in matters of financial accounting, internal control, risk analysis, and building business processes. But those who invest in their own professional development, gain many advantages for further career development.
For example, successful professionals in the field of finance should be technically competent, have knowledge in commerce and business, have proven experience in international practice and work in real conditions - these are the qualities that the work in internal audit develops. Therefore, it is logical that 25% of the financial directors of the largest companies in the world have an auditor education.
In addition, one of the many advantages of this profession is that you are insured against the most unpleasant consequences of any economic crisis because it is the audit teams that are the salvors of big business in troubled times.
If you are not afraid of the need for continuous self-improvement, high responsibility and possible business trips (for auditors working in large, especially international companies, business trips are not uncommon) - this interesting, complex and ambitious work will give new exciting prospects!
Comments