Within the accountancy field, internal auditors provide an independent and objective assessment of a company’s operations, specifically the effectiveness of its internal control structure. While some skills overlap with a CPA or a CMA, internal auditors have focused career paths built around the auditing function within large corporations.
Here’s a quick overview of what a career in internal auditing may entail and the possible career growth and salary opportunities.
What Are Internal Auditors Responsible For?
✓ Operations Analysis: An internal auditor reviews procedures and operations closely, confirming that they are followed correctly and support the organization’s goals and objectives. After examining processes and procedures, the auditor reports their findings and recommendations that help the organization to adhere more closely to its objectives.
✓ Compliance Review: An internal auditor supports senior management by staying fully educated about the intricacies of, implementation strategies for, and compliance with current regulations and legislation. An internal auditor is often responsible for explaining and detailing the impact of non-compliance on the organization and reporting signs or instances of non-compliance.
✓ Control Recommendations: An internal auditor may also be expected to evaluate the efficiency and effectiveness of current controls and determine if those controls can mitigate risks that threaten the organization. Effective internal control is a built-in component of the management process and keeps the organization on course toward its objectives and mission.
✓ Safeguard Assurances: Another common internal auditor function is reviewing how the organization protects its assets and assessing whether the appropriate safeguards are in place. If assets are not well protected, the auditor must recommend appropriate changes.
What Are Common CIA Career Paths and Salary Expectations?
This short overview of potential jobs is not an exhaustive list, as requirements and expectations change depending on the organization, region and industry. All salary figures come from the compensation research firm PayScale.
Entry-Level Internal Auditors
Early in your career, you must have the basic skills to review an organization’s processes, operations and goals, and provide clear summary reports of your findings. Most positions are tailored toward recent college graduates, preferably with bachelor’s degrees in accounting, finance, business administration or computer information systems.
Potential Jobs: Auditor, Auditing Specialist, Risk Assessment Specialist, Financial Analyst, Internal Controls Auditor, Information Systems Auditor
Salary Potential: $50,000 to $88,000
Lead Internal Auditors
With roughly five years of internal audit experience, you’ll be expected to demonstrate an understanding of the organization and industry best practices. You’ll often be asked to work with management to monitor internal controls, mitigate risks posed to the organization and provide feedback about audit plans.
Potential jobs: Senior Internal Auditor, Lead Internal Auditor
Salary Potential: $66,000 to $106,000
Internal Audit Supervisors
With more experience—often with eight years minimum in the industry—comes more oversight and management of the auditors on staff. You’ll also be expected to assist in the planning, testing and executing of internal audit activities and examine and monitor the company’s system of internal controls.
Potential Jobs: Audit Supervisor, Audit Manager, Risk Manager, Project Manager, Internal Audit Director
Salary Potential: $74,000 to $123,000
Internal Audit Executives
At this point in your career, after a decade or more of experience, you may oversee the internal audit department and participate in the management and execution of audit plans. You would be responsible for leading and directing the audit team. A successful track record as an effective manager is a must.
Potential Jobs: Finance Director/VP, Chief Financial Officer, Controller
Salary Potential: $85,000 to $240,000
Map Out Your Internal Auditing Career Path
The Institute of Internal Auditors helps both CIA and non-CIA holders map out their desired career paths.
But don’t forget that all of this depends on you first passing the CIA exam.
