Chief audit executives are responsible for overseeing the work of their organization’s internal auditors. They commonly provide guidance and direction on how to best fulfill their duties, as well as oversee any changes in policy or procedure that may be necessary. Show
Chief audit executives also commonly serve as a liaison between their company and external auditors. This might include meeting with external auditors to discuss findings from audits or other matters related to compliance with regulations or standards. Chief Audit Executive Job DutiesA chief audit executive typically has a wide range of responsibilities, which can include:
Chief Audit Executive Salary & OutlookChief audit executives’ salaries vary depending on their level of education, years of experience, and the size and industry of the company. They may also earn additional compensation in the form of bonuses.
The employment of chief audit executives is expected to grow at an average rate over the next decade. Organizations will continue to hire chief audit executives to ensure that their internal controls are effective and efficient. Organizations also will need to hire these workers to help prevent fraud and theft, which can be costly. Chief Audit Executive Job RequirementsThe qualifications for a CAE position typically include: Education: Chief audit executives are typically required to have a minimum of a bachelor’s degree in accounting, finance or another closely related field. Many employers prefer candidates who have a master’s degree in accounting or business administration with a concentration in accounting. Training & Experience: Chief audit executives typically have at least 10 years of experience in the accounting field. They may start as an accountant and work their way up to a senior-level position before becoming a chief audit executive. They may also work as an internal auditor before becoming a chief audit executive. Chief audit executives can also receive on-the-job training in their roles. They may learn the specific processes and procedures of the company they work for and the software they use. Certifications & Licenses: The most common certifications for chief audit executives relate to their leadership role and their professional responsibilities. Chief Audit Executive SkillsChief audit executives need the following skills in order to be successful: Communication: Communication is another important skill for an audit executive. You may need to communicate with employees, clients and other stakeholders. You can use your communication skills to explain complex financial information and make it easier for others to understand. You can also use your communication skills to build trust with others. Leadership: Leadership skills can help you advance your career as an audit executive. You can use your leadership skills to motivate your team, improve productivity and help your company achieve its goals. Strong leadership skills can also help you mentor other members of your organization, including junior-level employees. Strategic thinking: Strategic thinking is the ability to see the big picture and understand how your work fits into the organization’s goals. As an audit executive, you may be responsible for planning and overseeing the entire audit process, including hiring staff, creating a budget and developing a plan for the audit. Having strong strategic thinking skills can help you make important decisions about how to proceed with the audit and how to best use company resources. Critical thinking: Critical thinking is the ability to analyze a situation and make a decision based on the information you have. As an executive, you may need to make important decisions about the company’s future, and your ability to think critically can help you make the best choice. Critical thinking can also help you solve problems and make improvements to the company’s processes. Business acumen: Having business acumen means having a thorough understanding of the business world and how companies operate. This can include knowing the challenges companies face and how to overcome them. Having business acumen can help an auditor develop strategies for assessing a company’s financial health and identifying areas of improvement. Chief Audit Executive Work EnvironmentThe work environment for a chief audit executive (CAE) is typically that of a large corporation or government agency. The CAE is responsible for the overall direction and management of the internal audit function and reports directly to the board of directors or the audit committee. The CAE works closely with senior management to ensure that the organization’s financial statements are free of material misstatements and that the organization’s internal controls are adequate. The CAE also works with external auditors to ensure that the organization’s financial statements are in compliance with generally accepted accounting principles. The CAE typically works a standard 40-hour week, but may work longer hours during periods of peak activity. Chief Audit Executive TrendsHere are three trends influencing how CAEs work. CAEs will need to stay up-to-date on these developments to keep their skills relevant and maintain a competitive advantage in the workplace. The Need for Greater Transparency The need for greater transparency is a trend that is being driven by the public’s increasing distrust of businesses and their motives. This has led to a demand for more information about how companies operate, and what they are doing with the money they make. Chief audit executives can capitalize on this trend by becoming more transparent themselves. This means providing more information about the company’s operations and finances, and being open to questions from investors and customers. In addition, chief audit executives should work to build trust with the public by demonstrating that they are committed to ethical business practices. Risk Management Becomes More Important As risk management becomes more important, chief audit executives will need to develop new skills and strategies in order to keep their organizations safe. This trend is being driven by the increased prevalence of cyberattacks and data breaches, which have put sensitive information at risk. Chief audit executives need to be able to identify potential risks and come up with ways to mitigate them. They also need to be able to communicate effectively with other members of the executive team so that everyone is on the same page when it comes to security. More Focus on Cybersecurity As cybersecurity becomes an increasingly important issue, chief audit executives will need to focus more attention on this area. In order to protect their organizations from cyberattacks, chief audit executives will need to understand the latest threats and how to prevent them. They will also need to be familiar with the latest technologies and tools that can help protect against cyberattacks. How to Become a Chief Audit ExecutiveA career as a chief audit executive (CAE) can be rewarding and fulfilling. It offers the opportunity to make a difference in an organization, contribute to its success, and lead a team of professionals. As a CAE, you’ll need to have a strong understanding of accounting and auditing principles and practices, as well as business processes and procedures. You’ll also need to be able to effectively communicate complex information in a clear and concise manner. To become a CAE, you’ll need to have at least 10 years of experience in accounting and auditing. You should also have a working knowledge of business processes and procedures, as well as management skills. Additionally, it’s important that you have a strong ethical compass and are committed to upholding professional standards. Related: How to Write a Chief Audit Executive Resume Advancement ProspectsThe most common path to this position is through promotion from within the organization, although some organizations may hire from outside. To be promoted to chief audit executive, an individual must have served in a managerial capacity in the organization’s internal audit department for at least 3 years. The individual must also have a bachelor’s degree, preferably in accounting, business administration, or a related field, and extensive experience in auditing. In addition, the individual must have demonstrated leadership ability and be able to communicate effectively. Similar Jobs
What is the role of a chief audit executive?The role of the Chief Audit Executive is to monitor and verify the adequacy, effectiveness and correct operation of the internal control system. The Chief Audit Executive is endowed with an adequate level of autonomy and independence, as well as with adequate means to carry out its function.
Is the Chief Audit Executive in the audit committee?This is typically the audit committee, a sub-committee of the board of directors. To provide hierarchical independence, most chief audit executives report to the chairperson of the audit committee as to the performance of his/her duties.
How do you become a chief audit executive?They have obtained at least a bachelor's degree, most likely with a major in accounting. They have spent about 13 years in internal audit, seven of them in the CAE position. Most have an internal audit certification, likely a Certified Internal Auditor (CIA) credential.
What does a CAE do?Finding resources that provide skills, knowledge, and other necessary requirements for internal audit activities.
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