Financial Service or not to Financial Service? - that is the audit question!
Many auditors ask whether FS internal audit jobs are the best route. We explore the pros and cons of both worlds.
2/18/20243 min read
One question we get asked about is whether financial services is the nirvana of the internal audit world and should be the "go to pathway". Here we explore the pros and cons of which route to go.
When it comes to pursuing a career in internal auditing, there are various industries to choose from. Two popular sectors are the financial services industry and the manufacturing or non-financial services industry. Each industry offers unique opportunities and challenges for internal auditors. In this article, we will explore the advantages and disadvantages of internal audit jobs in these two sectors.
Advantages of Internal Audit Jobs in the Financial Services Industry
The financial services industry, which includes banking, insurance, and investment firms, presents several advantages for internal auditors:
Industry Stability: The financial services industry is known for its stability, which can provide job security for internal auditors. Despite economic fluctuations, there is a constant need for audits to ensure compliance and risk management.
Career Growth: Internal audit positions in financial services often offer excellent opportunities for career growth. As auditors gain experience and expertise in specialized areas such as regulatory compliance or anti-money laundering, they can advance to higher positions within the organization.
Exposure to Complex Financial Instruments: Auditing in the financial services industry exposes professionals to a wide range of complex financial instruments and transactions. This exposure enhances their knowledge and skills in financial analysis, risk assessment, and fraud detection.
Disadvantages of Internal Audit Jobs in the Financial Services Industry
While there are advantages, there are also some disadvantages to consider:
Regulatory Pressure: The financial services industry is heavily regulated, which means auditors must stay up-to-date with ever-changing regulations and compliance requirements. This can be challenging and requires continuous learning and adaptation.
Intense Workload: Internal auditors in financial services often face high workloads due to the complexity of the industry. They may be required to perform audits on multiple departments or projects simultaneously, which can lead to increased stress and pressure.
Increased Scrutiny: Auditors in the financial services industry may face more scrutiny and pressure from external stakeholders, such as regulators and investors. This can add additional stress and accountability to their role.
Advantages of Internal Audit Jobs in Manufacturing or Non-Financial Services
Now let's explore the advantages of internal audit jobs in the manufacturing or non-financial services industry:
Industry Diversity: Internal auditors in manufacturing or non-financial services have the opportunity to work in a wide range of industries, such as healthcare, retail, or technology. This diversity allows for exposure to different business processes and challenges.
Operational Focus: Auditors in these industries often have a more operational focus, which involves assessing internal controls, process efficiency, and cost management. This can provide a broader understanding of the organization's overall operations.
Less Regulatory Pressure: Compared to the financial services industry, manufacturing or non-financial services industries are generally subject to fewer regulatory requirements. This can result in less time spent on compliance-related tasks and more focus on operational audits.
Disadvantages of Internal Audit Jobs in Manufacturing or Non-Financial Services
However, there are also some disadvantages to consider:
Industry Volatility: Depending on the specific sector, internal audit jobs in manufacturing or non-financial services may be more susceptible to economic fluctuations. This can lead to job insecurity during times of economic downturns.
Limited Specialization: Unlike the financial services industry, internal auditors in these sectors may have fewer opportunities for specialization. This can limit career growth and advancement in certain areas.
Operational Challenges: Auditing in manufacturing or non-financial services industries often involves dealing with complex operational processes, supply chains, and inventory management. This can present unique challenges for auditors, requiring them to develop a deep understanding of the industry-specific operations.
Ultimately, the choice between internal audit jobs in the financial services industry and manufacturing or non-financial services industry depends on an individual's career goals, interests, and preferences. Both sectors offer distinct advantages and disadvantages, and it's important for aspiring auditors to consider these factors before making a decision.
