If you’ve worked in external audit for one of the Big 4 or a large accounting firm and you are thinking of a career change, then moving to internal audit can be a rewarding move.
However, there are a few myths which persist about what working in internal audit is really like; and yet no other area of corporate governance has undergone quite such a transformation in recent years.
It’s time to dispel those untruths!
Here are five reasons why making the move from external to internal audit can be beneficial.
1.Internal audit is completely different to external
Despite internal and external audit being complementary functions within the assurance framework, the duties and responsibilities between them are markedly different. We previously wrote a blog on that very topic, which you can read here.
In summary, the coverage and nature of an internal auditor’s work goes beyond the traditional financial statements and related disclosures of external auditing. Internal audit work is permanent and ongoing, but the challenges faced in the role change regularly. Firms look to their internal auditors to react to emerging issues and to provide a plan of action.
2. Internal audit is more strategic than ever
It’s fair to say that as recently as 10 years ago, internal audit was viewed as something which was largely about ticking boxes. However, the last decade has seen a significant revival in the function’s role and importance, not only within governance departments but across the wider business. It is now far more proactive than it is reactive. Audit teams have a key role in keeping up with rapid technological advances, which provides a whole new dimension to the career as we know it.
Internal audit is now viewed very much as a strategic function, which interacts with a number of different teams and gets involved with multiple projects and goals.
And with this involvement across so much of an organisation comes the realisation that internal auditors have a unique perspective into the organisation’s inner workings. As such, the role is very much viewed as a trusted advisor to key stakeholders. Many auditors now have an important role to play in guiding change management programmes and other key initiatives which are directly related to organisational goals.
3. Exposure to senior management
While external auditors provide assurance largely to shareholders, internal auditors deliver their reports to board members and other senior managers.
It’s common for internal auditors to be working closely with heads of department and even board members either from the outset or within a short space of time. This presents an ideal opportunity to build interpersonal capabilities; and now, more than ever, employers are looking for outstanding soft skills such as leadership, communication and empathy in their internal auditors.
Frequent interaction with senior management additionally offers better opportunities to fast-track your career. You’ll often be in the right place, at the right time - to impress the right people.
4. Employers really value external audit experience
External auditors with three years’ experience typically hold audit qualifications from a professional accounting body, which is highly valued by large employers. Hiring managers who are interviewing external auditors for their first internal audit position will often already have a career path in mind for them. The opportunities for rapid progression are strong.
With internal audit interacting across an entire organisation and relationships built in multiple business units, there will always be opportunities to move sideways into another area of the company further down the line, too.
5. Salary, benefits and work-life balance
Every role and company naturally have their differences, but broadly speaking, internal auditors can expect generous salaries and bonus packages, particularly within financial services, commerce and manufacturing. Our Global Hiring Guide for Audit - available to download for free - provides a salary guide overview for internal audit positions across a number of countries across the Americas, Asia-Pacific and Europe.
Internal auditors also typically enjoy a good work-life balance. Travel and on-site working is less common than it is for external auditors.
How to make the switch from external to internal audit?
The above outlines just a few of the many advantages of a career in internal audit (you might also want to read our popular blog post: 7 reasons why internal audit is an excellent career choice.)
If you decide it’s something you’d like to explore, then the good news is that the switch is usually straightforward. External audit experience is highly valued, and employers are less concerned about specific sector experience than they are technical and soft skills. With the role of internal audit becoming more strategic, organisations want to employ strong leaders with commercial acumen and excellent interpersonal skills. They recognise that candidates can learn the intricacies of specific industries on the job, whereas soft skills are much more inherent.
That said, professionals with a background in financial services audits or IT audits (and a CISA qualification) are also particularly sought after. External auditors who have had that type of exposure will keep plenty of doors open in terms of an auditing career.
If you’d like to find out more about careers in internal audit, please contact Adam Bond for an informal discussion!