Auditing Department Manager Jobs
Since a bank’s internal auditors serve many purposes, there will also be the need for many managers, depending on the size of the bank, the number of business units, and the number of auditors on the team.
Internal audit managers will perform some of the same tasks as internal auditors, with a few big exceptions. First, the audit manager is likely to handle highly confidential departments and sensitive material. They may also be more likely to handle detailed internal financial reporting audits for the bank. Secondly, they may be asked to develop or co-develop revised audit controls, new audit controls, and similar policies and procedures for the banking institutions. Finally, the audit manager will supervise and manage the audits that are performed under his or her jurisdiction, as well as the auditors performing them.
Audit managers are more likely to travel more extensive distances to perform their audits. They will work with higher level departments and personnel. They usually report the results of these audits to higher level managers and executives. The audit manager may also work with various departments to examine risk factors and develop new controls to minimize them.
Audit managers may need to handle issues that arise from audits performed by the internal auditors they supervise. In other words, if a specific department objects to a change recommendation made by the internal auditor, the manager will need to work with the department to explain why it is necessary or find a different way to meet that particular requirement.
Depending on the size of the bank, the audit manager may be required to train new auditors under his or her supervision. He or she will definitely be expected to provide leadership, coaching, and motivation to all employees he or she is responsible for. The audit manager needs to lead his or her team to meet their goals and objectives for the betterment of the company.
If you are a detail-oriented person, appreciate accounting, risk management, and good business practices, this may be a great career choice for you. This is also a great career choice for someone who wants to lead others and move up the corporate ladder. Working conditions are good. However, some travel may be involved.
Overall, the US Bureau of Labor Statistics projects that the need for accountants and auditors will increase greatly over the next several years. In fact, it cites a 22 percent growth rate over the average by the year 2018. This includes accountants and auditors in all business segments, not just those at financial institutions. However, given the increasing desire for accounting transparency and risk reduction, this is a growing career field at most banks. The demand for internal auditors will outweigh that of audit managers. However, reasonably good growth can be expected.
Internal auditors, including managers, will need to have a bachelor’s degree in accounting or business. Some banks prefer Certified Public Accountants or those holding related certifications. Some banks, especially for advanced positions, may require auditors to possess or earn a master’s degree in business administration.
Any auditor or manager who files a report to the US Securities and Exchange Commission is required to be a CPA. Depending on the auditor’s state, CPAs are required to have a certain number of years of education plus on the job experience. To maintain the CPA certification, auditors will be required to attend continuing education classes every year.
Auditors can earn additional certifications, according to the US Bureau of Labor Statistics, and most financial institutions will expect managers to hold or obtain them. The Institute of Internal Auditors offers the Certified Internal Auditor (CIA) designation to college graduates who have worked for two years as internal auditors and have passed a four-part examination. The same organization also offers the designations of Certified in Control Self-Assessment (CCSA), Certified Government Auditing Professional (CGAP), and Certified Financial Services Auditor (CFSA). To obtain these certifications, auditors must pass the exams and meet educational and experience requirements.
ISACA confers the Certified Information Systems Auditor (CISA) designation upon candidates who pass an examination and have five years of experience auditing information systems. Information systems experience, financial or operational auditing experience, or related college credit hours can be substituted for up to two years of information systems auditing, control or security experience. Managers of technology auditors may be required to hold or obtain this certification.
Knowledge, Skills, and Abilities
The most important knowledge for most internal auditors, including managers, to possess is the knowledge of standard business accounting practices as published by the SEC and other government agencies. In the United States accounting associations have also published acceptable, ethical accounting guidelines and procedures which their members are expected to adhere to.
Since the internal auditor is responsible for auditing a company’s accounting procedures, the manager needs to have extensive knowledge and understanding of all of these standards and guidelines, as well as how the particular company operates and manages its financial resources. Audit managers need to be very familiar with the government’s accounting regulations and IRS tax reporting guidelines, especially since they are overseeing others’ audits. Additionally, auditors will need to know the bank’s own accounting policies and procedures.
Audit managers must be sticklers for details. No detail can be overlooked or omitted in an audit, and managers will need to ensure that nothing has been overlooked before signing off on the internal auditor’s report. The auditor manager needs to be thorough, organized, and systematic. Since audit managers need to work with different people in different business units, they should also have very strong communication skills, including strong writing and presentation skills. Managers are likely to interact with top executives and key leaders of the bank, so they must have confidence in these kinds of skills. They should be comfortable working as a team. They should also be comfortable delivering less than favorable information to business units when the occasion arises.
As mentioned, internal auditors working for large banking institutions can earn a higher average salary than auditors working for accounting firms, government agencies, and smaller banks. According to the U.S. Bureau of Labor Statistics, accountants and auditors earn an average of approximately $59,000 per year. That is not specific to internal auditors at banks and includes accountants and auditors at every level in an organization. More senior auditors can earn as much as approximately $85,000 per year, or more, depending on the location of the bank, according to Salary.com. Specifically, audit managers earn even higher salaries than their auditors, sometimes significantly more. According to salary.com, audit managers’ average salary is approximately $109,000 per year.
Potential Career Paths
Audit managers are poised for upward mobility within a company for the same reasons as internal auditors. First, they must learn and communicate sound, ethical, and best business practices for their company. Secondly, they become intimately familiar with the company’s business practices and become valuable because of this knowledge. Improving a company’s practices through its internal audit structure can have a noticeable impact on its profitability. All of this often leads auditors and managers to substantial careers in their industries, and the banking industry is no exception.
Successful managers can become higher level managers and executives, sometimes of the accounting and/or auditing departments.