Internal Audit

Internal Audit is defined as an independent, objective assurance process that is designed to improve the efficacy of an organisation’s operations. The process evaluates company’s internal controls including corporate governance and accounting processes. Internal Auditing provides insights and recommendations based on assessments and analysis of data and business processes.

What is Internal Audit?

Internal Audit provides the management with the tools required to attain efficiency by identifying problems and correcting lapses. Let’s understand Internal Auditing as a job role. In a company, Internal Auditors help the management and board of directors (or similar authority) in better execution of their responsibilities. They help in securing compliance with various laws applicable to an organisation. Internal Audits also overlook the operational standards of an organisation.  

Types of Internal Audit

There are four types of Internal Audits, as follows:

Types of Internal Audit

• Compliance Internal Audit: This determines that the organisation adheres to the rules, policies, procedures and regulations of the state.
• Financial Internal Audit: The Financial Internal Audit evaluates the financial statements of an organisation and ensures that the financial records of the company are fair and accurate as they claim.
• Operational Internal Audit: This audits and evaluates that the company's resources are utilised in the most efficient and effective way to fulfil the company's objectives and missions.
• Information Technology Internal Audit: The IT Internal Audit evaluates information systems and ensures the accuracy of their processing, security and IT control-related logical access, backup and recovery.

Internal Audit Eligibility Criteria

The involvement of Internal Auditors in a company is huge, hence they have a variety of higher educational and professional backgrounds. The eligibility criteria is as follows:

• Candidates must hold a bachelor’s or master’s degree in Finance, Business or Accounting.
• Most organisations require students to have taken the Certified Internal Auditor exam.
• Some companies hire students who have a professional work experience of three to five years.

Also Read: Internal Audit Colleges in India

Internal Audit: Skillsets Required

Internal Audit plays a critical role in an organization. To succeed in this career, one must possess the following skills:

Internal Audit: Career Prospects, Jobs and Salary

Internal Audit is a lucrative and sustainable career path. This profession is resilient and is always one of the most sought after career paths. The entry level salary of an Internal Auditor is good according to the industry. The industry is ever-growing and the demand for Internal Auditors is ever increasing as the companies require dedicated employees who essential serve as eyes and ears of the company’s senior leadership.

Internal Audit: Jobs and Salary

In this field, one can start from an entry-level executive position and rise up to the level of a Chief Internal Auditor. Given below are some of the job roles available in Internal Audit:

*the above salary data is taken from ambitionbox.com

Internal Audit Top Recruiters

Internal Auditors are hired by banks and finance companies and auditing firms. Given below are some of the top recruiters for Internal Audit professionals.

FAQs Related to Internal Audit

Q: What is Internal Audit?

Q: How to make a career in Internal Audit?

Q: Is Internal Audit same as CA?

Q: Is Internal Audit better than External Audit?

Q: Is Internal Audit a good career option?

Q: Which colleges in India offer Internal Audit courses?

Q: What are the career options available after Internal Audit course?

Q: What is the role of an Internal Auditor?

Q: What are the types of internal audits?

Q: Which are the top companies that hire Internal Audit graduates?

Q: Which Internal Audit course is provided by ICAI? What is course fee?