Internal audit or internal controls

[Jose Barrio]

Good afternoon there.

First of all, I am not a native English speaker, so I am sorry if you see some grammar mistakes. I hope you can understand what I am asking tho.

I have been working in the UK in accounting and controlling but internal audit really appeals to me as it is a wider and more diverse role.

For this reason, I’d like to know if someone could help me with some questions about this function

What´s a normal day like? Is it full of repetitive tasks or is it diverse as you have to oversee different departments?

Do you have to assist with accounting month end and year end reconciliations?

What departments do you interact with (which departments´procedures you have to review and audit)? I also like marketing a lot so is it possible for internal auditors to review and audit the marketing plan? If so, could you also get to work for the marketing function in the future?

Is it easy to switch departments once you have been working as an internal auditor or internal controls specialist for a while? For example, to the commercial, marketing or compliance departments? I am no longer interested in accountancy. Which department do normally people move to from internal audit? I am asking it as I have heard some people get weary of travelling so they move to another function which does not involve travelling.

Is the workload and work life in internal audit and internal controls balance good? What´s the work – life balance like? Do you work long hours, extra hours and over the weekends?

Do you require to stay longer most of the days or only during certain audits?

What´s (from your experience) the best about working for this function or the worst? Is it the pay? Is it the working times?


Thank you

 

[Scalloway]

I have not been an internal auditor so this is based on my experience from working in a small local authority and the experience of my friend who was one of the council's internal audit team.

Do you have to assist with accounting month end and year end reconciliations?

This should not be part of your duties at all. You may be asked to check on them from time to time though to see that procedures are being followed.

The internal audit department should have a plan that covers all departments and the team will visit each department in turn reviewing procedures and making recommendations to tighten things up. This can mean viviting the actual offices and accessing original documentation. Or it can mean visiting a car park to check the attendant is collecting the correct fees.

I once had an interview to be an internal auditor doing outsourced work for a firm of chartered accountants. As the interviewer was showing me out I said hello to some of the office staff I knew as we walked along the corridor. I felt this counted against me as he wanted a total introvert who wouldn't fraternise with the client's staff.

 

[Jose Barrio]

Many thanks for your help, truly appreciated it.

This is what I also understand about the function, just want to make sure as I do not enjoy at all the accounting function and I am more into controls and process improvements.

Do you know about the workload? Is it as high as the one you can find in other departments? My bet, is that it depends on the type of audit. I mean, if you have to go overseas to audit a certain business area, it will take up your free time because of the fact that you have to travel and interact with people you do not normally work with?

Can we also say that in Internal Audit you do not have much exposure to numbers as you have as an accountant or financial controller?

thanks

 

[Scalloway]

Do you know about the workload?

That would depend on the business and the plan decided for the year. The same with travel.

Can we also say that in Internal Audit you do not have much exposure to numbers as you have as an accountant or financial controller?

I would think not as you are examining processes. What I remember form my studying day is that you might need to know about statistics as you will be examing trends to see if they are significant.

 

[Jose Barrio]

That would depend on the business and the plan decided for the year. The same with travel.



I would think not as you are examining processes. What I remember form my studying day is that you might need to know about statistics as you will be examing trends to see if they are significant.

Thank you, I need to clarify these questions with companies when I have interviews for an IA role.

 

[Spur Support Services]

HI Jose. I used to run Internal Audit for a utility. Internal Auditors have to maintain an attitude of independence from the normal operational side of the company.

There are different types of internal audit. Some internal audit may be provided to maintain ISO certification, which may have minimal Board exposure. Corporate internal audit is more concerned with looking at the overall risk and control environment and is monitored via the Audit Committee.

Corporate Internal Audit is basically there on behalf of the Audit Committee to give the Directors (and by extension, shareholders) assurance that the organisation's controls are effectively designed and are consistently applied in order to give them comfort that the risks are adequately controlled and the information given to the Board can be relied on, to support effective decision making.

Junior internal audit staff are likely to be performing testing work to check that documented controls are being followed. More senior internal audit staff would be more involved in considering whether the documented controls would be effective at controlling the risk they were targeting, recommending improvements and ensuring that the risk environment was adequately assessed. Co-ordination with External Auditors can reduce some external audit testing.

Risk based Internal audit plans should run on 3 year cycles, during which time you would be focussed on areas across the business. Certain Financial Controls may require checking every year if the organisation seeks to co-ordinate with External Audit or has any form of Sarbanes Oxley requirements.

I'd say the 3 top skills for internal audit would be integrity, attention to detail/documentation and good communication skills (especially listening).