Final answer:
The approach for hiring internal auditors should follow the insider-outsider model, incorporating individuals already working within the firm as well as new hires. The ideal candidate for an internal auditor position should possess knowledge of accounting principles, internal controls, and risk management, as well as strong analytical and communication skills. Trustworthiness, ethics, and objectivity are critical qualities for an internal auditor.
Step-by-step explanation:
When developing an internal audit activity, the approach for hiring should be based on the insider-outsider model. In this model, it is advantageous to hire individuals who are already working for the firm as 'insiders' because they have a deep understanding of the company's procedures and culture.
However, it is also important to incorporate 'outsiders' who bring fresh perspectives and expertise from outside the organization.
For the position of internal auditor, the ideal candidate would possess a combination of qualities. They should have a strong knowledge of accounting principles, internal control systems, and risk management.
Additionally, they should possess excellent analytical skills, attention to detail, and the ability to communicate findings effectively. An internal auditor needs to be trustworthy, ethical, and objective to ensure the integrity of the audit process.
To exemplify these qualities, a candidate could provide examples of identifying financial irregularities in a previous role, implementing process improvements to enhance efficiency and effectiveness, or collaborating with cross-functional teams to address compliance issues.