Internal auditors pursue careers with private firms, public companies, financial institutions, and federal, state and local government agencies. These professionals help ensure that organizations are run efficiently and public records are accurate. They also analyze and communicate financial information, and make sure tax returns are filed on time.
Job Outlook for Internal Auditors
According to the U.S. Bureau of Labor Statistics (BLS)1, job opportunities for auditors and accountants are expected to grow as fast as the average rate for all occupations from 2018 to 2028. Employment will be steady due to the number of businesses grows in an improving economy, new financial laws and corporate regulations are implemented, and awareness of accountability at the organizational level increases.
Career prospects should be brighter for candidates with advanced educational qualifications, such as a graduate degree in accounting, and professional designations, such as Certified Public Accountant (CPA) or Certified Internal Auditor (CIA).
What Does an Internal Auditor Do?
Internal auditors check for waste and fraud throughout an organization. They examine financial records and procedures, and establish controls to increase accuracy and efficiency within a company’s operations. Internal auditors use specialized software to track data in real time, and may also verify the integrity and reliability of the data.
Internal auditors with strong computer skills may assist in developing auditing software to meet the data analysis needs of specific organizations and industries. They may also focus on developing technology plans, and the implementation and monitoring of computer systems and networks.
What is an Internal Auditor’s Salary?
As of May 2018, the median annual salary for auditors and accountants nationwide was $70,500, according to the BLS1.
In their 2020 salary guide, global staffing firm Robert Half2 states that internal auditors are in demand, and can start out with a median annual salary of $48,000. Internal auditors with 1-3 years of experience earn $$70,500, while senior internal auditors can earn $90,250.
Higher-level positions typically require candidates to have advanced educational qualifications and professional experience.
Numerous factors determine potential salary ranges and employment opportunities, including a candidate’s education and work history, an employer’s size and type, and local market conditions.
What are the Requirements for an Internal Auditor?
Internal auditor positions typically require candidates to have at least a bachelor’s degree in accounting or a related field. Many professionals choose to become CPAs or attain the Certified Internal Auditor (CIA) designation to advance their careers. Some employers may prefer to hire an applicant with a master’s degree in accounting or an MBA with a specialization in Accounting.
Previous experience in accounting may also be attractive to employers, and students may participate in summer jobs or internship programs while pursuing a degree in accounting.
Graduates of an accounting education program should be able to:
- Accurately conduct internal auditing procedures
- Adhere to the latest industry rules and regulations
- Use specialized software to conduct auditing tasks
- Investigate financial records and identify instances of fraud and waste
Your Path to an Internal Auditor Career
There are many paths to a career as an internal auditor based on an individual’s experience and education levels. Some may start as an audit associate after earning an associate’s degree before progressing to a senior internal auditor position with an advanced degree and additional years in the profession.
Internal auditors should have a variety of skills, such as critical thinking, communication, decision-making and complex problem-solving, as well as integrity and a commitment to upholding the principles of the auditing profession.
1Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Accountants and Auditors, on the internet at https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm (accessed February 5, 2020).
2Robert Half, Salary Guide 2020, on the internet at https://www.roberthalf.com/sites/default/files/documents_not_indexed/2020_Salary_Guide_Financial_US.pdf (accessed February 5, 2020).
National long-term projections may not reflect local and/or short-term economic or job conditions, and do not guarantee actual job growth. Degree and/or certificate program options do not guarantee career or salary outcomes. Students should conduct independent research for specific employment information.