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