Starting a Career in Internal Audit: A Guide

It’s really important to know what a career in internal audit looks like. I’ve interviewed many candidates applying to start their career as part of internship programmes or graduate intakes – many have done the proverbial crash and burn within the first 5 minutes of the interview, and if you want to avoid those pitfalls, read more in my Article on How to ace your interview in the first 5 minutes.

However, before you start on that pathway, here’s a quick guide on the basics of what Internal Audit is and what Internal Auditors look like:

1. Understanding the Role of Internal Audit

Internal audit plays a critical role in organisations by assessing and enhancing internal controls, risk management, and governance processes. You would be surprised at how many aspiring internal audit interview candidates actually don't know what internal audit is. Many confuse it with external audit / financial statements audit and think it is all about doing the accounts. Here’s what you need to know:

• What is Internal Audit?

  • Internal auditors work within an organisation to evaluate its operations, financial systems, and compliance with policies.

  • They provide independent and objective assessments to improve efficiency, effectiveness, and risk management.

  • Unlike external auditors, internal auditors are part of the company they audit, and will assess a much wider spectrum of risks which solely impact the financial statements.

2. Developing Key Skills

Aspiring internal auditors should focus on the following skills:

• Analytical Skills: Internal auditors analyse data, identify trends, and assess risks. More and more use of data interrogation tools is becoming common place, so you should be familiar and adaptable to using these.

• Communication Skills: Effective communication with colleagues and management is crucial. Internal Auditing isn't for the person who wants to sit in front of a spreadsheet every day. You need to be able to speak to people in the business to truly understand the risks and challenges they face.

• Understanding Business Processes: Internal auditors need to comprehend various business functions. This is not the role for someone who wants to sit in a "sausage factory" repeating the same task over and over again - you need to have the vision and understanding of large complex organisations.

• Ethical Judgment: Upholding professional ethics is paramount. Simple.

3. Educational Pathway

To kickstart your internal audit career:

• Educational Background: Many say gain a bachelor’s degree in a financial field like accountancy or finance, but that’s very old school. More and more successful candidates come from a wider background. Of course some of the pure financial qualifications will drive many of the expected skills, but don’t be deterred just because you’ve gone a different route.

• Certifications: Consider pursuing relevant certifications such as the Certified Internal Auditor (CIA) designation.

• Non-degree pathways: A number of organisations have or are exploring direct entry routes for people who haven’t gone to university. KPMG is a great example of embracing this pipeline.

• Continued Learning: Stay updated on industry trends and regulations. Visit the Audit Hub for sources and links to assist!

4. Gaining Practical Experience

• Internships: Seek internships or entry-level positions in internal audit departments. See my Article on Internship programmes.

• Rotational Programs: Some organisations offer rotational programs that expose you to different areas of the business.

• Learn from Experienced Auditors: If you can, this is a great option, but work experience, especially in large organisations, is nigh on impossible to arrange (unless it’s a bring your child to work day!).

• Online talks / seminars: There are huge resources out there which you can hear from industry leaders in the internal audit world. The majority are free, such as LinkedIn, TedX, YouTube etc. For more insight on some of my favourite online training sources, see my Article on Top Online Training and Podcasts for Internal Auditors.

5. Explore Different Industries

Know which industry suits you best.

• Corporate Sector: Internal auditors work in various industries, including finance, healthcare, technology, and manufacturing.

• Public Sector: Government agencies and non-profit organisations also employ internal auditors.

• Financial Services: Banking, insurance, and investment firms have robust internal audit functions.

Also, know what the expectations of the role are in terms of location and travelling. Many roles in manufacturing will see you having to travel from one site to another due to the operational aspect of the business. Public sector jobs are much more limited in terms of travel and generally tend to provide a much better work / life balance. Financial services can have travel, but due to the organisational and regulatory demands, audit functions may be less centralised and will utilise collaboration tools to reduce the need to get on a plane.

Access websites like Glassdoor to get insights from people on what it's like to do the day job. Whilst travelling sounds glamorous, you may well find the company T&E policy has you staying in less than desirable locations, and economy flights can seem like a punishment!

6. Soft Skills Are Key

• Attention to Detail: Internal auditors must meticulously review documents and processes. If you have the attention span of a goldfish, this isn't the role for you.

• Problem-Solving: Addressing control weaknesses and process inefficiencies requires creative solutions.

• Collaboration: Working closely with colleagues across departments is key - being part of a team will follow your internal audit career from start to finish.

• Adaptability: The audit landscape evolves, so be open to learning new techniques.

Conclusion

Starting a career in internal audit offers a unique blend of technical expertise, business acumen, and ethical responsibility. Whether you are assessing financial controls, investigating fraud, or improving operational efficiency, internal audit provides a dynamic and intellectually stimulating path.

Remember, each step you take contributes to your growth as a professional. So, embrace the challenges, stay curious, and continue learning!