Choosing An Internal Auditor

Recently hailed as the number one career for thephysical property records as well as delicate financial
year 2007, Internal Auditors are very well soughtinformation. When choosing an Internal Auditor, you
after and compensated accordingly. Because ofshould check references, licensing information, and
stricter laws and enforcements due to corporatereview previous audit information available. The
accounting scandals, like that of Enron, companies areInstitute of Internal Auditors is a professional
offering top dollar compensation to accounting andorganization aimed at providing guidance, certification
finance professionals to provide internal audits. As anand educational research to it's over 130,000
internal audit can be expensive, it is wise to allocatemembers. This organization serves as a clearinghouse
and ensure the availability of funds prior to hiring anfor checking licensing and references.
internal auditor.Secondly, keeping in mind your companies business
As most companies typically conduct annual orneeds, the internal auditor should specialize in the
bi-annual reviews of processes and procedures, intype of auditing you require. For example, if it is
order to remain compliant, and hire internal auditorsquality management auditing, then the internal auditor
to do so, there are times when a governmentshould have the capability to grasp and understand
agency will come to audit things themselves. Thesefully your company's business, quality controls and
are stressful times and choosing the right Internalstandard operating procedures. This should be proven
Auditor can save thousands in fine and penalties.by a consistent track record of QMS audits. If it is
There are several factors that should be determinedrisk management or financial analysis that is required,
before choosing an Internal Auditor. First, you mustthen, along with being bonded individually as well as
know the role of an Internal Auditor to be able towithin his/her own auditing company, the internal
match your compliance strategy with the properauditor must be completely impartial and objective.
education, experience and know-how to effectivelyThis ensures that, while no personal interest is
get the job done. Acting as a go-between forinvolved, the end result will be to make
government compliance offices and providing arecommendations, share downfalls and places where
service to your company, the internal auditor mustcompliance must be tightened to ensure your
be aware of the latest in compliance governance.organization will pass any type of auditing test.
Therefore, when you choose an internal auditor, it isAs reported by NASDAQ, only half of all companies
your job, that is, you're responsible for the auditorlisted on the exchange actually have in place internal
you choose, to make sure the credentials areauditor functions. This is a dangerous lack of practice
relentlessly checked. Including the human resourceand could cost so much in fines and penalties, that an
department, the chief financial officer(s) as well asinternal audit can look like the cost for a weekend
others who make high-level decisions for thedrive to your mother's house. Sarbanes-Oxley
company are good ideas, too.requires the Internal Audit function exists in
In order to enhance internal controls and to remaincompanies that have $250,000 in assets or more. It
compliant with government standards, experience haswould be a horrible thing if a Cynthia Cooper
to be the number one criteria when choosingwanna-be blew your company apart simply because
someone who will have access to all intellectual andyou didn't hire an Internal Auditor.