All internal auditors have the mandate to provide the company with an assurance that there is risk control and management. According to Spira & Page (2003), internal auditors are also expected to evaluate the company’s regulatory compliance with laws and information security. They should also work together with anti-fraud team to ensure that risks are minimized. The significance of internal editor position includes:
a) Protection against Fraud
Businesses can lose millions of money due to internal theft cases committed by employees. This can include skimming customers through payments, cash theft, inappropriate transactions involving payrolls and check interference. A policy put in the company by the internal auditing team in relation to petty theft and fraud can inhibit any employee from stealing or misappropriating available resources. Internal auditors therefore prevent losses.
b) Internal Control Monitoring
Internal auditor function of coming up with policies and doing regular checks will not only minimize fraud cases, but will also reduce exposure of the company to fraud and many other losses. The internal auditor can use a policy of credit extensions to customers. Such policy will prevent bad debts and at the same time minimize internal thefts. This will easily enable the auditors to conduct their responsibilities with ease.
c) “Peer Review”
A common action among internal auditors is the exchange of standards and experiences through review of other companies’ laws and processes. Most government organizations recommend internal auditor exchange once in a while so that the information obtained can be adopted by the visiting company (Spira & Page. 2003). Every internal auditor should therefore be in a position to work well with other for the purpose of exchange of information.
The major question I should ask myself is if I have the qualifications to become an internal auditor. In most business organization, the qualifications of an internal auditor include holding a bachelor’s degree in finance, accounting or any other business related course; possess relation, communication and analytical skills; have management, writing and organizational skills.
From the above discussion of the internal auditor position, I am in a position to apply for the post. Not only will I be in a position to help the company not to run losses, I can also come up with techniques that will enable the company improve services while reducing risks. The position also involves interaction with other auditors; this means I will get more experience.