Rise to Your Internal Audit Career Potential MEM-Membership … · average, it is a good time to be an internal auditor. However, as with any profession, internal audit faces its

Rise to Your Internal Audit Career PotentialThe IIA’s 2016 Career Guide

The Institute of Internal Auditors2

The IIA’s Career Guide RISE TO YOUR INTERNAL AUDIT CAREER POTENTIAL

Rise to Your Internal Audit Career PotentialThe recognition of internal audit’s value continues to increase, as evidenced by findings in

The IIA’s Audit Executive Center’s 2015 North American Pulse of Internal Audit Report:

Navigating an Increasingly Volatile Risk Environment (2015 Pulse Report). Forty-two per-

cent of survey respondents expected their budgets to increase in 2015 and 29 percent

projected staff level increases. In fact, 29 percent said they anticipated their budgets to

increase by 15 percent or more.

Whether you pursue a lifelong internal audit career or spend limited time

in the profession to strengthen key skill sets, IIA President and CEO

Richard Chambers, CIA, QIAL, CGAP, CCSA, CRMA, says your time will

be well spent. According to Chambers, “Internal auditing has become

one of the few professions with skill sets that are so transferrable to other

business units within the organization that you can wait to decide your

path until after you have some experience.”

With unemployment levels for the profession less than half the national

average, it is a good time to be an internal auditor. However, as with

any profession, internal audit faces its challenges. 2015 Pulse Report

highlights both opportunities and challenges within the profession and

is intended to help practitioners use this information to best position

themselves for career success.

2012

2022 – 1,442,200 Accountants & Auditors

13%Increase}{

Source: 2015 U.S. Bureau of Labor Statistics,Employment Projections Program

TALENT DEMANDS

The Institute of Internal Auditors 3


Turning Challenge Into Opportunity

The advancement in technology and

speed of change over the last decade

have expanded the risk landscape and

changed both the composition of inter-

nal audit work and the skills necessary to

execute it. In a 2015 blog post, Cham-

bers commented “The days of the inter-

nal audit function being focused primar-

ily on financial controls is but a distant

memory. In fact, more than 80 percent

of internal audit plans in 2015 will be

dedicated to risks other than financial-

related topics. And skill sets are evolving

accordingly.”

Chambers also highlighted that for the first time in more than a decade, there is mounting

evidence of an emerging internal audit talent shortage. Compounded by the talent short-

age is a growing skill gap. When asked to describe why they were experiencing skill gaps,

of respondents to The IIA’s Audit Executive Center’s 2014 Pulse of the Profession survey:

■ 54% cited competition for a limited pool of skilled auditors as a concern.

■ 33% mentioned changes in the field making it difficult for auditors to stay current.

■ 28% cited insufficient compensation.

■ 25% mentioned lack of resources for skills development.

The question is, how do you become or continue to be the in-demand modern day internal

auditor? According to Larry Harrington, CIA, QIAL, CRMA, CPA, The IIA’s 2015–16

global chairman of the board and vice president of internal audit for Raytheon Co. in Waltham,

Mass, “Whether their organizations provide the resources or time to do so, internal auditors

must be willing to invest their own time and money to achieve that goal.”

The importance of his chairman’s theme, “Invest in Yourself,” hits home when Harrington

points out that globally, six in 10 audit departments’ training and development programs

are poorly implemented. The 2015 Global Internal Audit Common Body of Knowledge Study

4 out of 10 internal auditors receive less than 40 hours of training per year. –According the 2015 Global Internal Audit CBOK Study



(CBOK) shows most internal auditors only invest 40 or fewer hours

in training — the same as 10 years ago — with approximately four

out of 10 reporting they receive less than 40 hours of training per

year, three out of 10 reporting exactly 40 hours of training per year,

and another three out of 10 exceeding 40 hours. Harrington provides

his Raytheon auditing team with 200 hours of training annually and

asks them to match that investment on their own.

The notion that if internal auditors want to be successful, this num-

ber needs to increase is shared by Theresa Grafenstine, inspec-

tor general, U.S. House of Representatives, Washington, DC. She

made her perspective clear in the CBOK Report, Driving Success in

a Changing World: 10 Imperatives for Internal Audit, saying “Forty

hours of development per year is okay if you are comfortable with

mediocrity, but to be successful, you have to put in the extra time.”

Smart InvestingWhile it’s clear the time practitioners need to invest in professional training and develop-

ment needs to increase exponentially, the question becomes where to invest that time?

To answer the question, practitioners need to understand stakeholders’ needs so they can

attain or sharpen the skills necessary to meet those needs. According to KMPG Interna-

tional’s Global Audit Committee Survey, 2014, the top areas that stakeholders would like

internal audit to devote more time to are risk management processes (62 percent), IT and

data management (58 percent), operational risks (52 percent), and compliance and regula-

tion (45 percent).

39% 28% 33%

12

3

6

9

12

3

6

9

12

3

6

9

Less than 40 hours Exactly 40 hours Exceeds 40 hours

Source: 2015 Global Internal Audit CBOK Survey

Number of Hours Internal Auditors Invest in Training Annually

“Forty hours of development per year is okay if you are comfortable with mediocrity, but to be successful, you have to put in the extra time.”– Theresa Grafenstine, inspector general, U.S. House of Representatives



Respondents to the survey acknowledged the evolution of internal audit, with more than 80

percent indicating that internal audit’s role should extend beyond the adequacy of financial

reporting and controls to include key risks, especially escalating threats such as IT and data

management. However, only 50 percent of respondents indicated their internal audit team

currently has the skills and resources to be effective in this role.

Chief audit executives (CAEs) are working diligently to ensure they are staffing and develop-

ing their teams to meet the challenge. But the top five areas where they have faced hiring

challenges and identified gaps in their current team’s skill levels, according to the 2015

Pulse Report, include:

AREAS OF HIRING DIFFICULTY

RANK SKILL

1 IT–General

2 Cybersecurity & Privacy

3 Data Mining & Analytics

4 Industry-specific Knowledge

5 Analytical/Critical Thinking

AREAS OF SKILL DEFICIENCIES

RANK SKILL

1 Quality Controls (e.g. Six Sigma)

2 Data Mining & Analytics

3 Cybersecurity & Privacy

4 Forensics & Investigations

5 IT–General

45%Compliance &

Regulation

52%

Operational Risks

58% 62%Risk Management

ProcessesIT & Data

Management

Stakeholder’s Top Areas for Increased Internal Audit Focus

Source: KMPG International’s Global Audit Committee Survey, 2014



Top 4 Most Recruited Skills by CAEsWhile CAEs continue to face challenges in acquiring and developing staff with certain skill

sets, according to the 2015 Pulse Report, there are keys areas where they are not willing to

compromise. The skills that consistently rose to the top in terms of being essential for inter-

nal auditors to possess affirm an assertion Harrington has been quoted as saying for years,

“soft skills are the new hard skills.” However, there is a growing concern among leadership

that soft skills are more difficult to teach on the job, reinforcing the notion that practitioners

need to take a proactive approach to strengthening these skills outside the office.

TOP SKILLS SOUGHT AFTER FOR NEW INTERNAL AUDITORS Skills

Communication

Analytical/Critical Thinking

Business Acumen

Industry SpecificKnowledge

To help internal auditors strengthen these highly sought after skills, and attain a big picture

view of their current skills levels in all areas, The IIA has created a free tool for its members,

IIA Career Map™. This online application allows practitioners to self-assess their skills

against a global internal audit competency framework created by The IIA that is tied to vari-

ous internal audit positions. After the self-assessment is complete, IIA Career Map creates a

gap analysis and a personalized learning plan to help users get to the next level.



Ensure You’re 4 for 4



Communication


Business Acumen


96%of CAEs Highly Value

This Expertise

The ability to break down information, evaluate it, and understand how one component af-

fects another is invaluable. Combine that skill with the ability to examine assumptions, dis-

cern hidden values, evaluate evidence, and draw conclusions and it creates a powerful force

that provides a framework for solutions. It explains why analytical and critical thinking was

the top-ranked skill CAEs valued. These skills were considered to be extremely essential by

more than 62 percent of 2015 Pulse Report respondents, with another 34 percent consid-

ering them to be very essential — meaning 96 percent of CAEs highly value this expertise.

These skills roll up into the bigger picture of the role internal audit can ultimately play

within the organization. As board and audit committee member, Marty Coyne, stated in the

Audit Channel TV video As Audit Evolves, So Must We, “Looking out three to five years, in-

ternal audit will start to begin to be able to say ‘based on the following, here are the things

that we need to be thinking about.’ So from an audit committee standpoint, they help frame

some of the agendas. And from an external audit standpoint, I actually think they’ll have

a significant impact on the external auditors — what they are actually auditing, what the

subject matter is, and what the scope of the audit is.”

Through tapping into the power of the IIA Career Map tool, users can see what analytical

and critical thinking course work is appropriate to pursue based on current skill levels. Some

options include:

■ Critical Thinking: An Essential Skill for Internal Audit Success

■ Analyzing and Improving Business Processes

■ The Effective Auditor: Understanding and Applying Emotional Intelligence

■ Lean Six Sigma Tools for Internal Audit



Communication

TOP SKILLS SOUGHTAFTER FOR NEW INTERNAL AUDITORS

SkillsCommunication


Business Acumen



This Expertise

Nothing gets done without communication, which is why it was ranked so highly by CAEs,

with 56 percent of 2015 Pulse Report respondents describing it as extremely essential and

another 40 percent considering it very essential (96 percent combined). CAEs are looking

for practitioners who can not only analyze information, but develop clear messages to com-

municate their findings. Internal audit functions must have the skills to provide the level

of detail stakeholders need to make informed decisions, without bogging them down in ir-

relevant minutiae, resulting in:

■ Well-organized, well-written, and user-friendly audit reports.

■ Dynamic and compelling presentations.

■ Regular, well-timed, and appropriate conversations.

It is a skill that comes into play frequently, with more than seven in 10 re-

spondents citing that they periodically interview management to identify

changes in the organization’s risk profile, with 38 percent describing their

Communication skills use as very utilized and 33 percent as extensively

utilized.

To enhance communications skills, internal auditors should pursue pro-

fessional development opportunities such as The IIA’s courses Commu-

nication Skills for Auditors and Audit Report Writing. These skills are

vital for both gathering and delivering information. As Kwang Ho Sung,

vice president and head of internal audit at a major South Korean bank,

emphasized in a report issued from the 2015 CBOK Study, Driving Suc-

cess in a Changing World, “Excellent communication skills and business

knowledge are critical to internal auditors. If we find a potential control

breakdown in a high-risk area, we need to be able to easily and accurately

explain that to our clients in a way they understand.”

“Excellent communica-tion skills and business knowledge are critical to internal auditors. If we find a potential control breakdown in a high-risk area, we need to be able to easily and accurately explain that to our cli-ents in a way they under-stand.”

– Kwang Ho Sung, vice president and head of internal audit at a major South Korean bank



Business Acumen


Communication


Business Acumen



This Expertise

According to PwC’s 2015 State of the Internal Audit Profession Report, the absence of

strong business acumen skills within internal audit significantly hinders its ability to add

value. In fact, among stakeholders who find little value in their internal audit functions,

70 percent say business acumen is one of the primary road blocks. It explains why busi-

ness acumen skills garnered the number three spot in the 2015 Pulse Report’s list of most

recruited skills. These skills were considered extremely essential by 30 percent of respon-

dents and very essential by more than 50 percent (80 percent combined).

If internal audit is to successfully shift focus from primarily financial-related topics and

offer proactive insights on all business risks, business acumen skills are critical. As Abdul-

rahman al Harthy, chief audit executive, Oman Oil Group, explains in PwC’s report, “The

main area of challenge is not technical but behavioral: finding auditors with sufficient global

and business acumen who can face management and provide appropriate and constructive

levels of challenge.”

However, the same report offered a cautionary and challenging comment by Ninette Ca-

ruso, chief audit executive, Genworth Financial. “If internal audit says it is going to ‘learn

business acumen,’ it will fail,” says Caruso. “Internal audit needs people who will train

themselves by digging into the details, and that starts with intellectual curiosity. Intellectual

curiosity is key.”

This speaks to Harrington’s assertion that practitioners must take personal responsibility for

their professional development. Combining the drive it takes to train themselves by digging

into the details with courses that can offer direction on business acumen, such as The IIA’s

courses Creative Problem Solving Techniques for Internal Auditors and Essential Skills for

Today’s Internal Auditor, as well as those suggested through IIA Career Map, can prove to

be an effective formula.



Industry-Specific Knowledge


Communication


Business Acumen


69%of CAEs

Highly Value This Expertise

According to the The IIA’s Global Internal Audit Common Body of Knowledge (CBOK) Study,

Driving Success in a Changing World: 10 Imperatives for Internal Audit, only 53 percent of

respondents incorporate training for internal audit that addresses business knowledge re-

lated to the industry and organization. However, a total of 69 percent of respondents to the

2015 Pulse Report considered industry-specific knowledge, the fourth-ranked category, to

be either very or extremely essential (46 percent and 23 percent respectively).

While there are core competencies that all internal auditors should possess, applying those

skill sets to the health care industry and the fashion industry are two vastly different endeav-

ors. To be taken seriously and have both their skills and insights valued within the organiza-

tion, internal auditors must understand the driving factors, nuances, and unique challenges

of the specific industry in which they operate.

However, even within a given industry, any given sector of that

industry can demand different skills sets and industry knowl-

edge. For instance, Barclay Simpson’s Compensation and Market

Trends 2015, Internal Audit Report stated “Investment banks

have sought candidates with good capital markets products ex-

posure or experience of auditing front-office trading desks; while

consumer banks have seen demand rise for candidates with

strong model risk, treasury and liquidity understanding as they

respond to CCAR/DFAST regulations.”

Internal auditors must understand the driving factors, nuances, and unique challenges of the specific industry in which they operate.



5 Strategies to Land Your Next Position1. Put it in Writing

Develop a Vision StatementBefore you can chart a career path, you have to know where you want to go. Developing a

vision statement of where you see yourself in the next three to five years, and committing

it to paper, gives you a clearer sight line to your goals. Support your vision statement with

specific accomplishments to use as measurements, which could include:

Create a Professional Development PlanWith your vision statement in hand, create a professional development plan to arm yourself

with the skill sets and experience you need to get there. Although most people believe they

need more training, most do not view it as their personal responsibility to make sure they

get it. A July 2015 article, Skills Gap, Turn Over Are Top Talent Concerns, published by The

Society of Human Resource Management (SHRM), found that of workers surveyed:

76%33%

31%

placed the responsibility for providing a clear career development path on their employer.

rated their organization’s training and career development opportunitiesas excellent or good.

didn’t feel they had been trained adequately by their employer.

Areas of expertiseI want toexplore.

Industries/ typesof organizationsI might excel in.

Titles I wouldlike to hold.

Would I considerrelocatingfor a job?

What are mysalary and benefit

expectations?

CEO

MY DEVELOPMENT PLAN



With those numbers, simply taking personal responsibility for develop-

ing your career path will give you an edge on the competition. The good

news is, gone are the days where this has to be a manual process. Us-

ing free, online tools such as IIA Career Map can do the gap analysis

and course planning portion for you. All that is left is for you to follow

through on the training, update your personalized learning plan, and

continuing to pursue your independent learning.

Document Your AccomplishmentsThis can become an overwhelming task if you do not keep on top of it.

As time passes, it is harder to recall specific project details. Build it

into your regular routine by putting a weekly reminder on your calendar

to jot down three specific and tangible things you accomplished during

the week. Keeping an accurate and comprehensive log of your accomplishments positions

you to:

■ Gauge your current bandwidth.

■ Prepare for performance reviews.

■ Quickly and easily update your resume.

2. Use Your Network as Your Personal World Wide Web

Identify the Threads of the Spider’s WebMost people know the importance of having a strong network, but many people do not see

all of the various threads that connect and intertwine to build its strength. Think of it as

a spider’s web in that there are countless threads comprising it, and one thread leads to

another. Some of the threads might include:

■ Coworkers past and present, inside and outside your department.

■ Members of professional organizations such as The IIA.

■ Alumni groups, community interest organizations, clubs, and hobbies.

■ Past and present mentors, from inside or outside your organization.

■ Professional online communities including LinkedIn, Twitter, and Facebook.

How many people do you think are in your network? A June 2015 article in CareerCast,

The Underestimated Importance of Personal Networking, cited that according to the Pew

76 percent place the responsibility for providing a clear career development path on their employer.– Source: July 2015 article, Skills Gap, Turn Over Are Top Talent Concerns, pub-lished by The Society of Human Resource Management (SHRM)



Research Center, the average American has approximately 634 contacts. Additionally, the

August 2014 article, Professional Social Networks: What’s Average, and How Can You In-

crease Yours?, published by Keir Educational Resources, asserts that 490 connections is

the median for LinkedIn, 229 friends is the median for Facebook, and 130 followers is the

median for Twitter users.

This might create the impression that numbers are king in terms of network strength, but it’s

important to remember that the quality of the connection and the maintenance of the rela-

tionship are what ultimately makes that connection valuable. If you never connect in person

with these so-called contacts, recommend them for a particular skill, post a status, or tweet

a 140-character thought — and as a result have a meaningful exchange with someone in

your network — your numbers might as well be at zero across the board.

490 Median Connections for Users

229 Median Friends for Users

130 Median Followers for Users

Source - Pew Research Center

YOUR SOCIAL MEDIA NETWORKING TOOLS

Strengthen Your WebOnce you have recognized all the threads of possible connections you can make with your

web, you have to maintain each thread’s strength. This requires regularly checking in with

the members of your network, whether it’s through quick emails and texts, social media

posts, or in-person meetings. While small talk and casually chatting are inevitable, to ef-

fectively leverage each relationship in your network you must:

■ Educate each contact about your experience, skills, and aspirations.

■ Show sincere interest in their experience, skills, and aspirations.

■ Ask for advice, a referral, or a recommendation and be willing to give the same in return.



Leverage One of Your Strongest ThreadsA mentor can be a tremendous source of support and one of your greatest advocates, mak-

ing them an integral part of your network. If your organization has a formal mentor program,

enter the program or gain sponsorship. If not, think of another way to engage the wisdom of

a mentor. Perhaps someone from a professional association, another company, a different

industry, a trusted friend’s recommendation, and even a different discipline. The important

thing is that you trust and respect your mentor’s advice and perspective. Mentors can serve

different purposes including:

■ A source for expert advice in one particular area.

■ A sounding board who can offer more general advice.

■ An advocate within the organization who can increase your profile.

3. Develop and Emphasize Your Soft Skills

In Protiviti’s 2014 Internal Audit Capabilities and Needs Survey, respondents were asked to

assess their competency in 19 areas of personal skills and capabilities. The top issues that

surfaced as needing the most improvement were:

■ Presenting (Public speaking).

■ Negotiation.

■ TIE: Persuasion; Mastering new technology/applications.

■ TIE: Dealing with confrontation; Time management.

■ TIE: Developing other board committee relationships; Developing outside con-tacts/networks.

Given that of the top eight skills needing improvement, six were soft skills, it becomes clear

there is much room for improvement, but also tremendous opportunity for those who de-

velop and emphasize their strengths in this increasingly valued area. Not only will enhancing

your soft skills allow you more effectively serve stakeholders, it will ultimately allow you to

more effectively advocate for yourself and advance your career by positioning you to:

■ Take an active role in status meetings and performance reviews.

■ Be the first to come to mind for engaging new projects.

■ Have the confidence to go after a promotion or new position.



It should come as no surprise that strong soft skills build rapport with stakeholders and

enhance an internal auditor’s credibility. As Nicola Rimmer, director in Barclay’s Internal

Audit (London) and past president of The IIA–UK & Ireland, surmises in the 2015 CBOK

Report, Driving Success in a Changing World, “You need credibility if you want people to

come to you for advice and information.” She said part of building credibility involves being

able to speak to people about what really matters to them without turning every inquiry into

an audit request.

4. Study the Organization’s Strategic Plan

The 2015 CBOK Report, Driving Success in a Changing World, cites that 57 percent of re-

spondents to the CBOK practitioner survey say the internal audit department is either fully

aligned or almost fully aligned with the strategic plan of their business. That might sound

good, but it means a whopping 43 percent could not say this with confidence. If you fail to

understand your organization’s overarching goals and their strategy for realizing them, how

can you possibly know how your responsibilities fit into the equation?

Archie Thomas, a consulting internal auditor in Toronto, Ontario, and the former

CAE of a large mining company, serves on Quality Assessment (QA) teams for The

IIA. He says one of the most common complaints in QAs conducted around the

world is that internal auditors don’t understand the business. “If you understand an

organization’s strategy and how it cascades down through the organization’s objec-

tives — and you use that in your risk management and audit planning — you’ll start

to talk more like management,” says Thomas. “They will start to recognize … that

you are starting to understand their business. You’ll find that respect for internal

audit will go up, your brand will look better, and you will be able to accomplish a

lot more related to helping your organization achieve its objectives.”

ORGANIZATIONALSTRATEGIC PLAN

ACME IndustriesStrategic Plan

Strategic PlanningPrepare for the Future Bugeting and

ResourceAllocation

Develop Unit PlansImplement Plans

Consider RevisionsPut Initiativesinto Action

Assess Impactof Initiatives

Measure Results

Indentify Needsand How to Meet Needs to Fulfill

Objectives

43 percent say their internal audit department is not fully aligned with the organization’s strategic plan.



5. Invest in Yourself

When reflecting on the The IIA’s 2015 Global Internal Audit Common Body of Knowledge

(CBOK) Study: Driving Success in a Changing World: 10 Imperatives for Internal Audit

report’s revelation that internal auditors say they spend 40 hours or less on training and

professional development annually — unchanged from 10 years ago — IIA Global Chairman

Larry Harrington’s shock is palpable. “Has the pace at which the world is changing really

not altered since then?” asks Harrington. “Can anyone today remain indispensable to their

organizations, their profession, or themselves with just 40 hours of training a year?”

His point is well taken. So how do you effectively invest in yourself? You begin by setting a

training and development goal. Depending on your organization’s commitment to offering

training development opportunities, you may or may not be able to attain the 400 hours

annually that Harrington prescribes for his own staff. However, even doubling your personal

commitment from 40 to 80 hours annually would be significant progress. To do this, make

sure you recognize all the activities that count as training and development, such as:

■ Participating in training and education customized for you by IIA Career Map based on your input.

■ Volunteering for “stretch” projects above and beyond your current scope of responsibility.

■ Joining/heading a committee(s) in a professional organization for leadership development.

Source: 2015 Global Internal Audit CBOK Report,Driving Success in a Changing World

40HOURS

80HOURS

800 HOURS OF DEVELOPMENT MAY BE UNREALISTIC

Going from 40 to 80 hours is a majorinvestment in opportunity and growth.



■ Reading research reports, books, and how-to articles on critical issues facing the profession and the industry in which you work or aspire to work.

■ Engaging in online forums and message boards on hot topics within the profession to exchange ideas with colleagues.

Harrington recommends viewing yourself as a brand. This approach can help you make

smart investment decisions by questioning each opportunity using the standard of whether

or not the opportunity supports the brand you want to project to stakeholders, colleagues,

and your supervisor. If you apply this standard to every aspect of your brand, from what you

wear and what you say (including what you post on social media) to the courses you take

and the opportunities you pursue, you will position yourself to rise to your full internal audit

career potential.

What you do

What you say

What you wear

Whatopportunitiesyou pursue

YOUR PERSONAL BRAND IS:

BRAND

U



3 Compelling Reasons to Earn a Professional Internal Audit CertificationAccording to Robert Half’s 2015 Salary Guide, depending on company size, in 2015 pro-

jected salaries for internal auditors with one to three years of experience will range from

$57,500–$83,250 representing a nearly four percent increase over 2014, while senior

internal auditors’ salaries and internal audit managers’ salaries will increase more than

four percent ranging from $74,000–$126,250 and $87,500–$144,250 respectively. As

expected, salaries increase with experience and responsibility. However, gaining enough

experience to qualify for more senior and management positions can take years. In the

meantime, consider increasing your earning potential by pursuing professional certification.

Once again, Robert Half’s 2015 Salary Guide cited The IIA’s Certified internal Auditor®

(CIA®) as one of today’s in-demand certifications. The CIA exam is administered through a

computer-based testing platform at more than 600 sites around the world throughout the

year. In addition to the CIA, The IIA offers specialized credentials including:

■ Certification in Control Self-Assessment® (CCSA®)

■ Certified Financial Services Auditor® (CFSA)

■ Certified Government Auditing Professional® (CGAP®)

■ Certification in Risk Management Assurance® (CRMA®)

■ Certified Professional Environmental Auditor™ (CPEA™)

■ Certified Process Safety Auditor™ (CPSA™)

Projected Salaries for Internal Auditors*

*According to Robert Half’s 2015 Salary Guide

57,500 -83,250

1-3 Years Experience

74,000-126,250

Sr. Internal Auditors

87,500-144,250

Managers



Certified Professionals Earn More Money

While it makes sense that professionals who have more education and hold professional

certifications make more money, the difference in percentage increases in salaries earned

from holding a post-graduate degree and becoming certified is significant. According to

The IIA’s Audit Executive Center’s 2015 Internal Audit Compensation Study, in the United

States, the median salary for those with a master’s degree is 12 percent higher than those

holding a bachelor’s degree only (11 percent higher in Canada). However, the median salary

of internal auditors in the United States who hold one or more certifications is 33 percent

higher than auditors with no certification (27 percent higher in Canada). When you factor in

the difference in the time and expense of earning a master’s degree versus earning a profes-

sional certification, the difference on the return on investment appears exponential.

The idea that professional certification increases earning potential was highlighted by

Theresa Grafenstine, inspector general, U.S. House of Representatives, Washington, DC, in

the CBOK report, Driving Success in a Changing World. “In my organization, if people invest

in themselves and get additional certifications, it raises the professionalism of the internal

audit group and we reward that with hard dollars,” says Grafenstine.



More Job Opportunities & More Certification Options

Potential employers are more likely to look twice at your resume if you have CIA or other

letters behind your name. In some cases, not being certified can even eliminate you as a

candidate for a position. “My firm requires a designated professional certification for all

professionals at a manager level or above,” says Julie Lathrop, CIA, CPA, senior manager,

advisory services at EY. “The majority of professionals in my practice are either CPAs, CIAs,

or CISAs.”

Whether you are just embarking on your certification quest or looking to take it to the next

level, The IIA now offers two new programs to help you on your journey.

Mapping Your Path for GrowthProfessional development is a journey. Demonstrating your knowledge, acumen, and leader-

ship ability are key elements to arriving at your destination. Earning a professional internal

audit credential is a critical step toward demonstrating your knowledge of and strong com-

mitment to the practice of internal auditing.

Wherever your journey takes you, there’s a credential along the development pathway to

strengthen your knowledge base, deepen your competencies, and distinguish you among

your peers.

■ Enhancing your skills and knowledge.

■ Helping you gain credibility and respect in the field.

■ Increasing your earning potential.

■ Demonstrating your understanding of and commitment to the practice of internal auditing.



Internal Audit PractitionerThe Internal Audit Practitioner is a new designation that allows you to quickly demonstrate

your internal audit aptitude. You can earn this new designation by passing Part 1 of the

CIA exam and completing the Internal Audit Practitioner application. Candidates who ap-

ply and have successfully completed the CIA Part 1 exam within the past 24 months are

also eligible for this designation. This is a great opportunity for guest auditors or those in

rotational auditor roles.

Qualification in Internal Audit Leadership (QIAL) The IIA has developed the Qualification in Internal Audit Leadership® (QIAL®) to support

aspiring, new, and experienced audit leaders on their journey to be recognized among the

next generation of visionaries and leaders for the profession. The QIAL will help drive your

success by providing you with confidence and credibility in:

■ Internal Audit Leadership.

■ Organizational Leadership.

■ Ethical Leadership.

■ Innovation and Change Leadership.

“Smart business leaders surround themselves with those who can anticipate the effects of new tech-nologies, globalization, and geopolitical change on an organization’s op-erations and customers. They seek individuals who can act as change agents and can help an organization thrive — not just survive — in this fast-paced environment.”

– Lawrence J. Harrington, CIA, QIAL, CRMA, Chairman of The IIA’s Global Board of Directors, 2015–16, Vice President– Internal Audit, Raytheon Company



Certification Improves Fraud Deterrence and Misconduct

A recent study by The IIA Research Foundation found that certification has a positive impact

on fraud deterrence and misconduct. As Urton Anderson, Ph.D., from the Von Allmen School

of Accountancy at The University of Kentucky explains, “The study found that if you have a

high quality internal audit department, you are going to have a turnabout in terms of fraud

and misconduct. What’s most interesting about this is what factors contribute to the quality

… competency − measured by certification. It seems that audit departments with a higher

percentage of auditors certified are better deterrents, more competent, and better able to

provide protection to the organization.”

The quality of an internal audit department goes up with each individual who becomes certi-

fied as those individuals are:

■ Demonstrating a personal commitment to excellence.

■ Gaining invaluable knowledge by going through the certification process.

■ Committing to a continuing education requirement to stay certified.

This explains why many employers consider bearing all or part of the

expense of earning a professional certification, such as the CIA. “My

firm reimburses for a preparation course and examination fees once

you have obtained certification,” says Lathrop.

The impact that certification can have on the caliber of work produced

is motivating some companies to build it into the very fiber of their in-

ternal audit function. “My colleagues are preparing to take the exam as

it corresponds to the career development plan within the internal audit

charter,” says Jorge Badillo, CIA, CCSA, CGAP, CRMA, CISA, regional

internal auditor for the Kinross Gold Corporation in Chile, who was the

first in his native country of Ecuador to earn the CIA designation when

it was introduced there in 2006.

“Audit departments with a higher percentage of auditors certified are better deterrents, more competent, and better able to provide protection to the organization.”– Urton Anderson, Ph.D., Von Allmen School of Accountancy at The University of Kentucky



Bringing It All TogetherRising to your full internal audit career potential is a challenge and an opportunity. In the

wake of pressure to keep pace with increasing demands and evolving expectations, focusing

on professional development and career management can fall by the wayside. However, the

most effective way to serve your organization is to gain the knowledge and self-awareness

necessary to add value. Think of it as putting yourself in airplane mode — secure your oxy-

gen mask before assisting others.

While this guide has covered several steps you can take to rise to your internal audit career

potential, remember that any strategy takes times to formulate, implement, and refine. By

acting on just one or two of the suggestions offered here, you are laying the foundation of a

plan that will pay dividends for your long-term career success.

For more information about any of the professional development opportunities discussed in

this guide, please visit www.theiia.org/goto/careercenter.

Join The IIA today at www.theiia.org/goto/join.

10/2015-1415

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Rise to Your Internal Audit Career Potential MEM-Membership … · average, it is a good time to be an internal auditor. However, as with any profession, internal audit faces its