Internal auditors have quite a varied job description as they may work in several different business areas or departments each year, and they also need to have a broad pool of knowledge to be able to effectively carry out the audit process. If the internal auditor is employed within a large corporation (as is usually the case), they will probably circulate through the organization’s various divisions and areas on an annual basis. If they are from an outside agency (far less common), they may be employed for specialist jobs or as an auditor with guaranteed impartiality.
In Practice
The internal auditor will start a job by establishing the objectives of the audit itself through consultation and discussion with staff, supervisors, management and the board of directors. Once a set of goals or focus points are agreed upon, the auditor will infiltrate the specific area or division, doing their utmost to understand the day-to-day workings of the area.
It is important that the auditor understands all levels of the particular job or office, including the processes and systems which are in place and any problems or achievements which may have occurred since the last audit. Once this is achieved the auditor will draw up a set of controls or procedures that should ensure a level of quality or will eliminate the problems or glitches found during the audit. This will be given to the board of directors and the specific office to implement themselves, and the auditor may undertake a follow-up visit at a later date.
It is important to stress that internal auditors are intended to be independent advisors and are not responsible for the execution of their advice. They will report to the Board of Directors (or related upper management), but their general independence is a necessary part of ensuring the audit is carried out in an unemotional and impartial manner.