Recruiter's Glossary

Examples: Management Letter • Control Risk • Reconciliation

Internal Controls

Term from Auditing industry explained for recruiters

Internal Controls are the rules, procedures, and checks that organizations put in place to protect their assets, ensure accurate financial reporting, and prevent errors or fraud. Think of them like a company's safety system - similar to having locks on doors and security cameras. These could include things like requiring two people to sign off on large payments, regular inventory counts, or computer systems that track who makes changes to important records. Auditors often review these controls to make sure they're working properly. Related terms you might see include "internal audit," "compliance," or "risk management."

Examples in Resumes

Developed and implemented Internal Controls for financial reporting processes

Led annual review of Internal Control systems across multiple departments

Strengthened company's Internal Control framework to ensure SOX compliance

Conducted testing of Internal Controls and recommended improvements

Typical job title: "Internal Control Specialists"

Also try searching for:

Internal Control Analyst Control Specialist Internal Auditor Compliance Officer Risk Analyst SOX Analyst Controls Manager

Where to Find Internal Control Specialists

Professional Associations

• Institute of Internal Auditors (IIA)
• ISACA
• Association of Certified Fraud Examiners

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you design an internal control system for a company that's preparing to go public?

Expected Answer: Should discuss comprehensive approach including risk assessment, documentation requirements, testing procedures, and compliance with Sarbanes-Oxley Act. Should mention importance of involving stakeholders and training staff.

Q: Tell me about a time when you identified a significant control weakness and how you addressed it.

Expected Answer: Should demonstrate experience in identifying risks, developing solutions, implementing changes, and monitoring effectiveness. Should show ability to communicate with management and lead projects.

Mid Level Questions

Q: What are the key components of an effective internal control framework?

Expected Answer: Should mention control environment, risk assessment, control activities, information/communication, and monitoring. Should be able to explain each in simple terms with examples.

Q: How do you test internal controls and document your findings?

Expected Answer: Should explain process of planning tests, sampling methods, documentation requirements, and how to report findings. Should mention both manual and automated testing approaches.

Junior Level Questions

Q: What is segregation of duties and why is it important?

Expected Answer: Should explain that it means different people handle different parts of a process to prevent fraud and errors. Should give simple examples like having different people approve and process payments.

Q: What are some basic types of internal controls?

Expected Answer: Should be able to explain preventive controls (like passwords) and detective controls (like reconciliations) with simple examples from business settings.