Internal Auditor

How to Choose the Right Internal Auditor for Your Company

Internal Auditor for Your Company

How to choose the right internal auditor is a question asked by many UK company directors and shareholders. The subject of internal auditors is one of great interest to those companies that are publicly listed. Public companies have to declare their audited financial accounts and quarterly and yearly reports to the UK’s House of Commons Select Committee on Accounts and Public Company Reporting.

The Select Committee on Accounting and Public Company Reporting is also responsible for ensuring that the accounts of a company are prepared in accordance with the UK’s VAT laws. VAT is one of the UK’s most important business taxes and the accounting firms that provide auditing services must be able to cater to all types of businesses and sectors within the UK.


Internal Auditor

Relating to the Tax Office

It is important for an auditor to understand the objectives of the company and its management before being appointed. The auditor’s role is to review the performance of the company and ensure that it is meeting its objectives. Auditors conduct interviews with company management and key personnel to gather information relevant to the company’s management and aims. This information is then sent to the auditor to examine it in detail. While most internal accountants are trained accountants, they are usually not qualified in matters relating to the tax office.


Accountants in England and Wales

How to choose the right internal auditor depends on whether the auditor is independent or paid. Independent auditors can work for the company or for a commissionaire who will represent only the company. They may be employed through a professional body such as the Institute of Chartered Accountants in England and Wales (ICAI). The ICAI is the regulatory body for Chartered Accountants in England and Wales, and they set the ethical standards for accountants working in the UK. Many other professional bodies and organizations also pay public accountants for their services.

The amount of remuneration paid to an internal auditor will vary, depending on his performance and the size of the company. Some auditors make between one and two percent of the company’s annual revenue, while others earn ten percent or more. It is important that companies understand exactly how much they are paying each internal auditor. Some internal auditors can earn up to twenty-five percent of a company’s annual revenue.


Internal Auditor

Save Money by Utilizing Tax Laws

When considering an auditor, it is important to look at their qualifications. Most companies choose auditors with a CPA designation because they meet the highest professional standards. Other credentials that are important to companies are the auditor’s knowledge of tax laws, accounting principles, and ethics. Many auditors complete a three-year post-secondary course on the latest developments in accounting and auditing. This can help a company to recognize gaps in their practices that would allow the company to save money by utilizing tax laws to their advantage.


Internal Auditor for a List of References

Companies should ask an internal auditor for a list of references. An auditor will most likely provide a handful of references to potential clients. The client should be provided with at least one or two of these references, and an interview should be scheduled with each of the references. Each of the references should discuss the services they received from the internal auditor. If there is a clear discrepancy between the services the auditor was willing to provide and the services he actually provided, the company should consider using an auditor who offers a higher level of expertise. A high-level accountant may also be able to provide better training to employees, which can make them more effective at their jobs.


Internal Auditor

Companies to Handle Audits 

The best way for companies to handle audits is to hire an auditor who is trustworthy, diligent, honest, and knowledgeable. Many auditors choose to work on a contingency basis, meaning that the company only pays for the audit if the results are positive. The majority of tax accountants are on a contingency basis, which means that they are paid when their audit is completed. In addition to providing a lot of services, tax accountants often receive a large portion of their pay during the year.


Hire an Internal Auditor

If you have decided that you need to hire an internal auditor, make sure to choose carefully. The tax consultant or accountant should be trustworthy, honest, and knowledgeable in order to provide the most accurate information possible to help your company succeed. A quality tax expert will be familiar with the ins and outs of many tax codes, allowing him or her to offer sound tax advice to his or her clients. A great internal auditor will be well versed in the latest industry trends.


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