The Key Skills and Qualifications to Become an Internal Auditor

Internal auditing is a growing and dynamic profession that requires a diverse set of skills and qualifications. As an internal auditor you will be responsible for objectively evaluating your organization’s operations processes, and internal controls. This requires technical knowledge, critical thinking, and excellent communication abilities. By developing expertise across a range of areas, you can perform your duties diligently and provide value to your organization.

If you are interested in becoming an internal auditor, here are the key skills and qualifications you should focus on:

Hard Skills

Financial Analysis

One of the core responsibilities of an internal auditor is analyzing financial statements and data. You need to be comfortable evaluating financial reports, trends ratios and performance metrics. Strong financial analysis skills allow you to identify discrepancies, risks, and areas for operational improvement. This involves synthesizing data from various sources to recognize issues. Coursework in accounting, finance, and analytical methods is valuable.

Risk Assessment

Internal auditors must be skilled in assessing risk across the organization. This involves identifying high-risk areas by considering internal and external factors. You will need to evaluate the likelihood and potential impacts of risks occurring in different processes and systems. Understanding risk management frameworks and maintaining a risk register are important capabilities.

Audit Methodologies

There are various audit standards and methodologies to comply with, such as the International Standards for the Professional Practice of Internal Auditing. Being knowledgeable about established audit frameworks like COSO and COBIT is vital. This allows you to plan and conduct audits effectively. You should be able to develop audit programs, test controls, collect evidence, and document the procedures performed.

Soft Skills

Communication Skills

Excellent verbal and written communication skills are essential for internal auditors. You will need to interview employees at various levels of the organization. Presenting audit findings and recommendations to management requires strong report writing and public speaking abilities. Tailoring your communications for different audiences is key.

Analytical Thinking

Strong analytical thinking skills allow internal auditors to interpret data, evaluate evidence, and exercise sound judgment. Being detail-oriented and methodical in your analysis is important. You will synthesize information from multiple sources to identify issues and their root causes. Analytical skills contribute significantly to arriving at effective solutions.

Teamwork and Interpersonal Skills

Internal auditors often work closely with other departments. Developing productive working relationships, collaborating with audit clients, and maintaining integrity are critical. You need to be able to work independently and exercise professional skepticism while also operating as part of a cohesive audit team. Strong interpersonal skills create an environment of open communication and continuous improvement.

Education and Certifications

A bachelor’s degree is essential for starting an internal audit career. Relevant fields of study include accounting, finance, business administration, and information systems. Coursework in auditing, risk management, and data analysis provides good foundational knowledge. Many employers prefer candidates with a master’s degree and professional certifications like the CIA, CISA, CFE, and CPA.

The Certified Internal Auditor (CIA) credential offered by the Institute of Internal Auditors is the most recognized certification for internal auditors. Obtaining a CIA demonstrates competence in areas like governance, risk management, and control. Eligibility requires passing a 3-part exam and having at least 24 months of internal audit experience.

Key Personality Traits

Certain inherent personality traits align well with the duties of an internal auditor:

• Integrity – Displaying high ethical standards, honesty, and professionalism. This builds trust and credibility with clients.

• Curiosity – An inquisitive nature that asks probing questions and desires continuous learning. This facilitates in-depth analysis.

• Attention to Detail – Carefully examining processes, transactions, and documentation. This results in thorough auditing.

• Adaptability – Adjusting effectively as audit plans and priorities shift. This enables successful project execution.

• Diplomacy – Maintaining composure and providing objective perspectives. This allows effective communication with various stakeholders.

Career Development Opportunities

Continuous skills development and diversification are key to advancing your career as an internal auditor. Some ways to expand your capabilities include:

• Pursuing additional certifications in specialized areas like fraud, IT, compliance, and data analytics
• Volunteering to work on high-risk audit projects
• Learning new audit techniques and technologies
• Taking on leadership roles within your department
• Cross-training by spending time in other departments like finance and IT
• Getting involved with professional internal audit associations

Broadening your perspective and competencies elevates your expertise. This can lead to career progression into senior auditor, audit manager, and eventually chief audit executive roles.

Being an accomplished internal auditor requires both technical qualifications and soft skills. Mastering financial analysis, risk assessments, and audit methodologies provides the vital foundation. Complementing your technical expertise with strong communication, analytical thinking, and relationship-building abilities will drive success. Lifelong learning and professional development are integral in the ever-changing business landscape. With dedication and a diverse skillset, you can build a rewarding career as a trusted advisor who enhances organizational processes and governance.