Certified Internal Auditors are specialized accounting professionals who use their keen eye for detail to objectively assess the efficiency of a company’s operations. Unlike external auditors who are independent of the organization they’re reporting on, internal auditors work directly within the business or agency to ensure all financial policies are implemented properly. Certified Internal Auditors monitor the company’s finances carefully for accuracy and compliance to the latest regulations imposed by the government. In today’s cutthroat business world, internal auditing is playing a prominent role in helping organizations boost their effectiveness and profitability by cutting out waste and fraud. Certified Internal Auditors may also look at factors like financial risk, growth, environmental impact, and personnel ethics to suggest changes.
Salary
According to the Bureau of Labor Statistics, internal auditors checking for mismanagement of company funds in the United States earn an average annual salary of $73,670, which could be equated to a mean hourly wage of $35.42. Certified Internal Auditors who work in corporate management make slightly more at $74,430, but those with the highest average salary are employed by the federal government for $93,430 annually.
Beginning Salary
When first starting out in the auditing field without certification, individuals can expect to land in the bottom tenth percentile of earnings with a yearly salary under $40,850. However, Certified Internal Auditors with years of experience and roles in larger corporations have the potential to eventually make a six-figure salary upwards of $115,950 each year.
Key Responsibilities
Certified Internal Auditors have the primary responsibility of evaluating their employing company’s financial records and make recommendations for greater compliance. On a typical day, internal auditors can be involved in studying business processes, assessing financial risk, using auditing software, providing ad hoc advice to managers, performing assessments on key business activities, interviewing staff on operational problems, forming suggestions to boost efficiency, preparing auditing reports, and making certain taxes are paid properly. Auditors spend a significant amount of poring over data, but they work with accountants, fraud examiners, managers, and other staff to resolve any discovered issues too.
Necessary Skills
In order to be successful, Certified Internal Auditors must have the mathematical skills needed for analyzing, comparing, and interpreting figures on complex company balance sheets. Being detail-oriented with good organizational skills is a must for auditors to maintain meticulous records and create comprehensive reports for management. Internal auditors should have solid communication skills to present their assessment findings either in writing or in live meetings. Certified Internal Auditors benefit from an analytical mind because critical thinking skills play a part in quickly identifying red flags for fraud or inefficiency. Internal auditors should also have certain technical skills to utilize data analysis and auditing software correctly.
Degree and Education Requirements
Becoming a Certified Internal Auditor usually requires venturing into post-secondary education to receive at least an accredited four-year bachelor’s degree. Most aspiring auditors choose to attend business school for earning an undergraduate major in accounting, business administration, or finance. In some cases, an associate’s degree may be sufficient for taking on entry-level auditing or bookkeeping jobs. For the best career preparation, make certain you’re taking courses related to internal auditing, taxation, cost management, risk assessment, auditing information systems, quality assurance, and business law. Although it’s not yet mandated, returning to graduate school for a Master of Accounting (MAcc) is smart for internal auditors seeking advancement with added CPA credentials.
Pros and Cons of the Position
As with any other accounting career, working as a Certified Internal Auditor will come with its fair share of ups and downs that you should be aware of. First, let’s start on a bright side by stating that most Certified Internal Auditors receive a decent salary with room for advancement and good benefits packages. Auditors work in a comfortable office setting and interact with various other members of the company staff beyond number crunching. Certified Internal Auditors can choose their own specialization, such as information technology, environment, or compliance.. On the other hand, Certified Internal Auditors are given a load of responsibility that can become too overwhelmingly stressful for some. Auditing jobs require long hours beyond the standard 40-hour week, especially when deadlines approach. Some auditors may also need to travel frequently to collect information on business operations at multiple sites.
Getting Started
While earning an appropriate education, the first step towards reaching your goal of being a Certified Internal Auditor is to build practical experience. Most accredited business schools will happily connect you with auditing internships for getting your feet wet. Taking on volunteer or service learning projects that involve accounting and auditing is also smart. If you’re looking to specialize in a specific industry, make certain you’re boosting your resume in this niche. Employers will look for internal auditors with anywhere from one to eight years of experience before handing over an interview. You may need to start as a junior-level auditor, bookkeeper, accounting clerk, or staff accountant. Once you have at least 24 months of internal auditing experience, you can apply for the Certified Internal Auditor credential from the Institute of Internal Auditors (IIA). You’ll need to pass an initial three-part exam and fulfill continuing education requirements to maintain certification.
Future Outlook
According to the BLS, employment of auditors and accountants is projected to steadily rise slightly faster than average at 13 percent, which will create around 166,700 new jobs by 2022. As America’s economy continues recovering from the last financial crises, auditors will be in demand to carefully examine financial records and find new avenues for growth. Stricter laws have been passed by the federal government to cut down on corporate scandal, thus giving Certified Internal Auditors more areas of compliance to search for. It’s believed that the continued globalization of our business world will lead to a larger need for auditing expertise internationally as well. Certified Internal Auditors can find jobs working for government agencies, manufacturing companies, corporations, non-profit organizations, financial institutions, insurance firms, and various other businesses.
Overall, internal auditors are the unsung heroes who work diligently to make certain shareholders can trust a company’s numbers and financial stability. Certified Internal Auditors have maintained a high level of training and expertise in helping corporations mitigate accounting fraud and financial irregularity. If you make the decision to become a Certified Internal Auditor, you’ll have the rewarding opportunity to use your love of numbers for keeping your company running smoothly and profitably with little worry of risk.
