Certified Internal Auditor (CIA) : How to Become, Scope & Salary

Who is Certified Internal Auditor?

A Certified Internal Auditor (CIA) is a professional designation granted by the Institute of Internal Auditors (IIA), a global professional organization dedicated to advancing the internal auditing profession. The CIA designation is widely recognized and respected in the field of internal auditing and signifies an individual’s competence, expertise, and commitment to the highest standards of professional practice. To become a Certified Internal Auditor, individuals must meet certain education and experience requirements and pass a rigorous examination administered by the IIA.

Geeky Takeaways:

• A Certified Internal Auditor (CIA) is a certificate granted to accountants who perform internal audits.
• The Institute of Internal Auditors (IIA) awards the CIA to those who have passed the tests that are necessary.
• CIAs are often engaged in government, financial, and corporate audit departments.
• CIAs are identical to certified public accountants (CPAs), although CPAs are mostly recognized in the United States, whereas CIAs are recognized worldwide.

History and Government Requirement of Internal Auditors

The IIA (Institute of Internal Auditors) was established in 1941, establishing internal auditing as a profession. In 1950, Congress mandated that every government agency should incorporate internal audits in its system of internal controls. Internal auditing originated as an independent aspect of accounting in the mid-twentieth century. The Foreign Corrupt Practices Act of 1977 completely transformed the internal auditing business. The act prohibited firms from hiding cash or engaging in bribes. The act mandated companies to maintain proper internal control systems as well as comprehensive and precise financial records, which increased need for internal auditors. The first CIA exam was given in 1974, and as of 2021, there were over 178,000 CIAs.

Why Pursue Certified Internal Auditor?

Becoming a certified internal auditor has many perks that will help you advance in your career and help your company do well. The CIA Certification certifies your skills and increases your credibility. It also opens up more job possibilities and raises your earning potential. It also makes people more dedicated to doing great work in the area of internal auditing. By getting this licence, you set yourself up for a fulfilling and rewarding job in a field that is growing and important.

1. Global Recognition: CIA certification provides worldwide acceptance and credibility for internal auditors. The CIA credential is recognised and acknowledged in over 170 countries, adding validity to your professional image. Employers appreciate this certification because it displays a strong dedication to the field of internal auditing and represents an in-depth knowledge of risk management, internal control, and governance.

2. Boosts Credibility: CIA certification increases job opportunities for internal auditing experts. Internal auditors with the CIA accreditation are in great demand by organisations trying to further strengthen their internal controls. With this credential, you can pursue a variety of professional paths, including internal auditor, internal control specialist, risk manager, compliance officer, and internal audit manager. The CIA certification’s global recognition opens up fresh opportunities inside your existing organisation and in the global job market.

3. Competetive Advantage: This certification helps you gain a competitive edge and boost your earning potential with challenging exams and ongoing professional development. Furthermore, obtaining the CIA certification can result in greater earning potential. Internal auditors with CIA certification earn substantially more on average than their non-certified counterparts. This certification provides actual proof of your experience, enabling you to seek higher salary and compensation packages.

4. Job Security: Internal auditors are in high demand in the accounting and financial job market, providing career stability. Internal auditors are in higher demand as organisations improve disclosure and control systems.In a variety of business situations, CIAs specialise in ensuring internal controls, managing risks, and corporate governance. As a result, firms seek to recruit and keep CIAs.

5. Professional Networking: CIA certification provides access to a broad network of internal auditing professionals. This network comprises other CIAs, business professionals, and intellectuals who may offer you significant insights, advice, and encouragement throughout your career. Engaging with this group of people via local chapters, seminars, and internet platforms promotes cooperation, knowledge sharing, and professional development.

How to Become a Certified Internal Auditor?

1. Those who want to become certified by the CIA must have a bachelor’s degree and at least two years of work experience in an area related to internal auditing, like quality assurance, compliance, or internal control. There are also standards for a character reference and proof of identity.

2. Also, if you want to keep your CIA licence, you will need to complete 40 hours of continuing education (CE) every year. CIA agents can work in a lot of different fields.

3. A CIA agent can work their way up to become a vice president, chief auditing executive, or head.

4. A CIA can become a internal auditor, an audit supervisor, or a compliance auditor. They can also become an expert in research auditing as well as technology auditing.

5. Most of the time, CPAs make a little more than CIAs, but it depends on the CIA’s job title and role.

Scope of Certified Internal Auditor

1. Increased Earning Potential: CIA-certified professionals typically command higher salaries and compensation packages compared to non-certified individuals. According to surveys conducted by the Institute of Internal Auditors (IIA) and other industry organizations, CIAs tend to earn higher salaries and bonuses than their non-certified counterparts.

2. Specialization and Expertise: The CIA certification covers a broad range of topics and competencies relevant to internal auditing, including internal control, risk management, governance, and business analysis.

3. Career Flexibility: The skills and knowledge acquired through the CIA certification are highly transferable and applicable across various industries and sectors. Certified Internal Auditors have the flexibility to pursue opportunities in diverse organizations, including corporations, government agencies, non-profit organizations, consulting firms, and financial institutions.

4. Continuous Learning and Professional Development: Maintaining the CIA certification requires adherence to the Institute of Internal Auditors’ (IIA) Continuing Professional Education (CPE) requirements, ensuring that CIAs stay updated with the latest developments, trends, and best practices in the field of internal auditing.

Job Profile of Certified Internal Auditor

• Examine the organization’s existing financial operations and notify management of any inconsistencies or deficiencies.
• Carry out an unbiased assessment of the accounting records and guarantee that the accounting records have been prepared accurately and adhere to all applicable statutory obligations.
• Keep an eye on the organization’s current risk management procedures and controls and to report any serious issues that might come up with regard to operations and risk management.
• Evaluate the organization’s financial and operational aspects and recommend to management any strategies for boosting income and decreasing expenses.

Salary of Certified Internal Auditor

1. Auditor

The starting salary for an entry-level auditor in the United States is approximately $60,000. Internal auditors with less than a year of experience can expect to earn approximately £30,000 (approximately $41,000 USD) in the United Kingdom. An equivalent entry-level position in India remunerates approximately $5,300 USD, or 390,000 rupees. Numerous positions beyond that of an auditor will demand additional certification and experience. Successfully completing the Certified Internal Auditor examination signifies a comprehensive comprehension of the domain of internal auditing. Certification can not only result in an increased salary but also provide access to fresh professional opportunities.

2. Senior Auditor

A senior auditor is the position immediately above an auditor and is responsible for supervising a group of internal auditors. In addition to conducting final evaluations of the financial systems and information of the organisation, senior auditors verify the accuracy of all data prior to being released to management for decision-making purposes. An estimated senior internal auditor salary in the United States is $80,000, while in India it is 660,128 rupees (approximately $9,000 USD) or £54,000 (approximately $74,000 USD).

3. Audit Supervisor

The audit supervisor primarily assumes the responsibility of risk management. Alongside collaborating with senior auditors, this role entails establishing the organization’s risk threshold and conducting tests to verify compliance with said thresholds. A responsibility of the audit supervisor would also be to provide updates to executive management. An audit supervisor would earn approximately $90,000 annually on average. This amounts to approximately £78,500 (approximately $107,000) in the United Kingdom and 835,000 rupees (approximately $11,500) in India.

4. Chief Audit Executive

Chief Audit Executive (CAE) is the highest level of the corporate hierarchy. The CAE must communicate clearly with each staff member and the board of directors in order to make sure that the internal audit runs efficiently and that the results are accessible to upper management. The CAE must have an in-depth knowledge of how every aspect of the organisation operates. The average annual salary of a chief audit executive is $150,000 in the United States, £120,000 (approximately $164,000 USD) in the United Kingdom, and 3.1 million rupees (approximately $42,000 USD) in India.

Certified Internal Auditor – FAQs

What is the CIA certification?

The Institute of Internal Auditors (IIA) issues the Certified Internal Auditor (CIA) certification, which is an internationally renowned label for internal auditors. It demonstrates knowledge of the principles, practices, and standards of internal auditing.

Who may apply for the CIA certification programme?

The CIA certification is open to candidates who possess a bachelor’s or higher degree, or a comparable degree, from a university with accreditation and satisfy particular experience prerequisites in the field of internal audit.

What is the role of an internal auditor?

The Internal Auditor examines financial statements and writes reports on compliance to verify adherence to industry standards and ensure that all activities have been conducted correctly.

How do you become an excellent Internal Auditor?

When they do their jobs, internal auditors need to be honest and fair. There must also be confidence, independence, and objectivity, and they must be tough enough to handle tough situations that may come up during an audit.