The Importance of the Internal Auditor Accountant
Auditing whether internal or external plays a very crucial part in the evolution as well as the sustenance of an organization. The procedure of internal auditing grew steadily in the years following the Second World War along with the development and growth of the management science. It can be stated that the internal auditing derives its fundamentals from the management consultancy and the public accounting procedures. The implementation of the Sarbanes-Oxley act in the USA further fuelled the growth of the profession of internal auditing. The internal auditor accountant can help the companies in complying with the legal requirements of the country.
The correct definition of internal auditing is the art of helping organizations in achieving their affirmed objectives. The professionals that are employed by various organizations in order to do the internal auditing are known as the internal auditors. The internal auditor accountant helps the organization in improving by carrying out the internal audit utilizing a systematic methodology to scrutinize the various business procedures, processes, as well as activities in order to pinpoint the problematic areas and then helping them by providing solutions. The internal auditing is really a field with a vast scope and thus the internal auditor accountant needs to be highly educated as well as people with the professional backgrounds.
Some of the topics that the internal auditors might be concerned with are the reliability of the financial reports, the compliance with laws as well as regulations, investigating and deterring frauds along with the safeguarding of the resources and assets. The profession of internal auditor accountants is a highly unregulated one despite of the fact that there are several international standard setting bodies. One of the most influential and internationally followed bodies is the Institute of Internal Auditors (IIA). The standards that are set by the IIA for the professional practice of internal auditing are accepted in over 165 countries that have nearly 150,000 members as the members of the body. Among these members there are around 65,000 Certified Internal Auditors.
One of the most important aspects of the profile of an internal auditor is that they are only answerable to the audit committee that comprises of a sub committee of the board of directors. In order to do their work effectively the internal auditors are given organizational freedom. Majority of the chief audit executives report only to the chairperson of the audit committee and can only be replaced with his agreement.