Internal audit leaders hunt for student talent

Internal audit executives are casting the net wider to find talent, searching beyond experienced auditors and looking for recent college graduates who not only have learned about accounting and auditing, but also technology like data analytics.

The Institute of Internal Auditors' Internal Audit Foundation, in partnership with Deloitte, released a report Monday surveying a group of 305 internal audit managers and 64 educators. It found hiring managers tend to seek recent college graduates who have studied accounting (80%), followed by auditing (53%), business (44%), and computer science or information technology (43%). The most essential skills hiring teams look for, apart from experience and education, include business communication (78%), data analytics (53%), internal auditing (47%), and ethics or organizational governance (46%).

"In today's competitive job market, we are seeing some of the softer skills related to leadership and communication being prioritized by hiring managers," said IIA president and CEO Anthony Pugliese in a statement. "As evidenced in the report, internal audit is competing with some of the biggest names across the tech sector for graduates with backgrounds in AI, cybersecurity, and data analytics. The profession needs to work closely with educators to ensure the pipeline of incoming talent has the skills required to stay ahead of a rapidly changing risk environment."

More than half (58%) of the respondents said they've hired a recent college grad for an entry-level staff position within the past five years. Of the 42% of respondents who indicated their internal audit function hadn't hired any recent college grads, more than half (58%) said they preferred to hire internal auditors with prior experience, while another 20% cited a lack of qualified candidates.

The report found that internships seem to be the most promising way to fill the talent pipeline. Colleges and universities with students completing internships are more likely to place graduates in the internal audit profession. Among respondents who offer internships, 74% said their internships are designed to encourage future employment within the internal audit function.

"The need for new skills in areas such as data analytics, cybersecurity, and artificial intelligence will require casting a wider net to find new internal auditors," said the report. "However, hiring habits are hard to break. Even as hiring managers acknowledge the changing skill sets for auditors of the future, 8 in 10 still identify accounting as the preferred area of study for new hires."