Understanding Internal Audit: Setting Realistic Expectations
Embarking on a new journey in the field of Internal Audit (IA) can be both exciting and daunting, especially if you have preconceived notions based on past experiences. Let’s dive into what you can realistically expect from a senior IA position and how it aligns with your career aspirations.
A New Perspective on Internal Audit
Having been offered a senior role in IA, it’s natural to reflect on past experiences, especially when your background is rooted in CPA/Macc and financial due diligence (FDD). Your previous work with Big Four (B4) Audit firms might have painted IA in a certain light, particularly if your experience centered around the stringent testing of SOX controls. It’s understandable that this might have left you with a less-than-positive impression.
However, it’s essential to reassess and possibly shift this perspective, as IA can offer much more than what meets the eye.
Beyond Compliance: Adding Value Through IA
A common misconception is that IA mirrors the rigidity of external audits. While there are procedural aspects, IA often transcends mere compliance. The role can significantly leverage data analysis, driving value by providing insightful evaluations and fostering business improvements. For someone like you, who thrives on thinking outside the box, IA offers the opportunity to challenge the status quo and introduce innovative approaches to auditing practices.
The suggestion that IA may be an overly restrictive field shouldn’t dissuade you. Instead, consider how your unique analytical mindset can contribute to and evolve within this discipline.
Career Path and Growth Opportunities
An intriguing aspect of many IA programs is the progression they offer within the business. After two years, auditors often have opportunities to pivot into other roles. This aligns with your long-term goals in Financial Planning & Analysis (FP&A) or controllership, areas known for their dynamic analysis-driven environments.
In IA, you’ll gain a robust understanding of organizational processes and controls, which can serve as a solid foundation when transitioning to roles with a stronger focus on analysis and strategic input.
Conclusion
In summary, approaching IA with an open mind can unveil its potential as a value-adding component of business strategy. The skills and insights you gain may prove invaluable, enhancing your overall understanding and equipping you for your desired path in FP&A or controllership. Embrace this opportunity to broaden your skills and perhaps even redefine your perception of what IA can truly offer.
One response
It’s excellent to see you reflecting deeply on your career path and considering how a role in Internal Audit (IA) can align with your long-term goals in FP&A or controllership. Let’s break down your concerns and the expectations you may have of an IA position.
Understanding Internal Audit’s Role: Internal Audit often carries a reputation similar to your experience with SOX controls—rigid and compliance-focused. However, IA’s scope can indeed be much broader and more dynamic. It can involve operational audits, risk management, governance, and consulting engagements. The value-added aspect of IA is its potential to improve business efficiencies, identify risks before they become issues, and enhance internal controls that drive organizational improvement.
Leveraging Data Analysis: With your background in FDD and finance, you can bring significant value to an IA role through advanced data analytics. Many forward-thinking IA departments are evolving to incorporate data analytics as a core part of their practice. By leveraging sophisticated data analysis, internal auditors can provide more insightful and timely recommendations to business leaders, enhancing the value and impact of IA activities.
Innovative Thinking and Hypothesis Testing: Your desire for employing hypothesis testing and out-of-the-box thinking is indeed applicable in IA, especially in organizations that embrace a culture of innovation and continuous improvement. Effective internal auditors often use creative problem-solving approaches to uncover underlying issues that aren’t visible through traditional methods.
Career Development and Transition: The prospect of moving into business roles after gaining IA experience can be a strategic career move. Given that IA gives you a comprehensive understanding of the organization, its risks, and its operational intricacies, you can position yourself well for roles in FP&A or controllership. The knowledge and skills gained in IA can directly apply to financial planning, analysis, and strategic decision-making processes in future roles.
Aligning Expectations: While you might be concerned about IA being too rigid, investigate the specific culture and structure of the IA department within the organization offering the position. Ask about their approach to audits, the level of autonomy auditors have, and how much value is placed on innovation and continuous improvement. This will give you more insight into whether this IA role aligns with your career aspirations.
Personal Growth and Opportunity: Even if your end goal is elsewhere, a stint in IA can be seen as a unique opportunity to enhance your strategic thinking skills and broaden your understanding of business operations. It’s not just about compliance;