GN & Company, a newly established firm of Company Secretaries, has been appointed as internal auditors of a large manufacturing company. Partners of the firm have no prior experience of handling such large internal a

CS Professional · Internal and Forensic Audit · PYQS · December 2025
GN & Company, a newly established firm of Company Secretaries, has been appointed as internal auditors of a large manufacturing company. Partners of the firm have no prior experience of handling such large internal audit assignment independently. They are keen to know how to proceed for audit. G, Partner in Charge of the Internal Audit has undergone his practical training with you and has approached you for your invaluable guidance and mentoring in this regard. You, a senior partner of a well-established firm of Company Secretaries, told him that internal auditors should possess certain skills and competence, in addition to being independent and objective in their assessments. You advised him that effective planning is key to success for every project by quoting a well-known saying that if you fail to plan, you plan to fail. You also advised that internal auditors must plan and conduct meetings with various stakeholders including board of directors, senior management and others, to understand the business environment and their requirements. Explain what skills and competence internal auditors must possess ?

Answer & Explanation:

Internal Auditor Skills and Competence: The Internal Auditor shall have sound knowledge, strong interpersonal skills, practical experience and professional expertise in certain areas and other competence required to conduct a quality audit. He shall undertake only those assignments for which he has the requisite competence. The Internal Auditor shall either have, or shall obtain, such skills and competencies, as necessary for the purpose of discharging his responsibilities. Continuing Professional Education is a key part of this exercise. Internal Auditor shall have the softer skills (such as interpersonal and communication skills) required to engage with a multitude of stakeholders. Internal auditor should have IT skills, interviewing skills, documentation skills, reporting skills etc. in order to discharge his responsibility effectively. Internal auditor should also posses' specific skills such as planning an audit engagement, team building, managing audit engagement, presentation skills etc. Where the Internal Auditor lacks certain expertise, he shall procure the required skills either though in-house experts or through the services of an outside expert, provided independence is not compromised. The objective is to ensure that the audit team, as a whole, has all the expertise and knowledge required for the area under review.

Topics: Internal Audit Skills

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