Key Responsibilities and Required Skills for a Head Auditor

🎯 Role Definition

The Head Auditor, often titled Chief Audit Executive or Director of Internal Audit, serves as the cornerstone of an organization's governance and control environment. This senior leadership role is fundamentally responsible for providing independent, objective assurance and advisory services designed to add value and improve the organization's operations. Reporting functionally to the Audit Committee of the Board of Directors and administratively to executive leadership (such as the CEO or CFO), the Head Auditor leads the internal audit function to evaluate risk management, control, and governance processes. This position is pivotal in fostering an ethical culture, ensuring compliance with regulations, and safeguarding company assets through a systematic, disciplined approach to auditing.

📈 Career Progression

Typical Career Path

Entry Point From:

Senior Audit Manager or Director from a large public accounting firm (Big 4 preferred).
Director of Internal Audit from a smaller or less complex organization.
Senior leadership role in finance, compliance, or risk management with extensive audit exposure.

Advancement To:

Chief Financial Officer (CFO)
Chief Compliance Officer (CCO) or Chief Risk Officer (CRO)
Board of Directors position, particularly as an Audit Committee Chair or financial expert.

Lateral Moves:

Vice President of Finance or Corporate Controller
Head of Enterprise Risk Management (ERM)

Core Responsibilities

Primary Functions

Develop and execute a comprehensive, risk-based annual internal audit plan by identifying key business risks and aligning audit activities with the organization’s strategic objectives.
Direct the full lifecycle of financial, operational, compliance, and IT audits, ensuring they are planned, executed, and reported in a timely and professional manner.
Present audit findings, risk assessments, and the status of the annual audit plan directly to the Audit Committee of the Board of Directors, fostering open communication and trust.
Provide strong leadership to the internal audit team, including recruiting, training, mentoring, and developing staff to build a high-performing and engaged department.
Evaluate the adequacy and effectiveness of the company’s system of internal controls, particularly those related to financial reporting (e.g., Sarbanes-Oxley compliance).
Act as a trusted advisor to senior management, offering insights and recommendations on improving business processes, controls, and governance structures without compromising independence.
Oversee the investigation of significant suspected fraudulent activities, working in conjunction with legal, compliance, and HR departments as required.
Establish and maintain a robust quality assurance and improvement program to ensure the audit function adheres to professional standards (e.g., The IIA's International Standards for the Professional Practice of Internal Auditing).
Monitor the implementation of management's action plans to address audit recommendations and report on the status of remediation efforts to the Audit Committee.
Coordinate audit efforts with the external auditors to ensure efficient use of resources, maximize audit coverage, and avoid duplication of work.
Champion the use of data analytics and other emerging technologies within the audit process to enhance efficiency, deepen insights, and improve risk coverage.
Stay abreast of evolving industry trends, regulations (e.g., SEC, PCAOB), and best practices in internal auditing, risk management, and corporate governance.
Manage the internal audit department's budget, resources, and any co-sourcing arrangements with third-party audit providers to ensure cost-effective delivery of the audit plan.
Prepare and deliver clear, concise, and impactful audit reports that articulate findings, identify root causes, and provide practical, value-added recommendations.
Cultivate strong working relationships with key stakeholders across the organization to promote the value of the internal audit function and facilitate its objectives.
Assess the organization's enterprise risk management (ERM) framework and provide assurance on its effectiveness in identifying, assessing, and mitigating key risks.
Lead special projects and management-requested reviews that require an independent and objective perspective, such as M&A due diligence or process re-engineering reviews.
Drive a culture of integrity and accountability throughout the organization by championing ethical behavior and control consciousness.
Review and approve all audit work papers and reports, ensuring they meet the highest standards of quality, accuracy, and professional rigor.
Facilitate the Audit Committee's oversight responsibilities by providing education on emerging risks and governance topics.

Secondary Functions

Participate as a non-voting member in key enterprise steering committees to provide real-time advice on control and risk implications of new initiatives.
Lead or support special investigations into potential violations of the code of conduct, whistleblower complaints, and other sensitive matters.
Advise on the control design for new systems, business processes, and strategic transformations to embed effective controls from the outset.
Collaborate with the compliance, legal, and information security functions to create a more integrated and holistic approach to governance, risk, and compliance (GRC).

Required Skills & Competencies

Hard Skills (Technical)

Expertise in IIA Standards: Deep understanding and application of the International Standards for the Professional Practice of Internal Auditing.
COSO & ERM Frameworks: Proficiency in applying internal control and enterprise risk management frameworks like COSO.
Sarbanes-Oxley (SOX) Compliance: In-depth knowledge of SOX Section 302 and 404 requirements and testing methodologies.
U.S. GAAP / IFRS: Strong command of accounting principles to assess financial statements and reporting processes.
Audit & Data Analytics Software: Experience with audit management software (e.g., TeamMate, AuditBoard) and data analytics tools (e.g., ACL, IDEA, Alteryx, Tableau).
Fraud Detection & Investigation: Knowledge of fraud schemes, investigative techniques, and forensic accounting principles.
IT General Controls (ITGC): Understanding of IT control environments, cybersecurity risks, and auditing information systems.

Soft Skills

Executive Presence & Communication: The ability to communicate complex issues clearly and credibly to the Board and C-suite executives.
Unquestionable Integrity & Ethics: A steadfast commitment to professional ethics, objectivity, and confidentiality.
Strategic & Critical Thinking: The capacity to see the bigger picture, connect dots across the business, and apply professional skepticism.
Stakeholder Management & Influence: Skill in building trust and influencing positive change with senior leaders without direct authority.
Leadership & Team Development: Proven ability to build, inspire, and mentor a world-class internal audit team.

Education & Experience

Educational Background

Minimum Education:

Bachelor's Degree

Preferred Education:

Master's Degree in Business Administration (MBA) or Master of Accountancy (MAcc)

Relevant Fields of Study:

Accounting
Finance
Business Administration

Experience Requirements

Typical Experience Range:

15+ years of progressive experience in public accounting and/or internal audit, with at least 5-7 years in a significant leadership capacity managing teams and interacting with senior executives.

Preferred:

A combination of "Big 4" public accounting experience and leadership within a publicly-traded, global company's internal audit function is highly desirable.
Direct and extensive experience preparing materials for and presenting to an Audit Committee of the Board of Directors.
Professional Certifications: One or more relevant professional certifications are strongly preferred and often required.
- Certified Public Accountant (CPA)
- Certified Internal Auditor (CIA)
- Certified Information Systems Auditor (CISA)
- Certified Fraud Examiner (CFE)