If you have given serious thought to pursuing a career in accounting, an important question has probably crossed your mind: “What is a certified internal auditor?” By reading the information found below, you can obtain an answer to this question and several others that pertain to the field of internal auditing.
Internal Auditor – A Broad Definition
Although the term “internal auditor” can have specific and unique meanings in different fields, it typically references an individual who offers objective assessments regarding how efficient the employer’s operations are. By providing internal audits, individuals who hold this position aid organizations in improving the efficacy of important functions such as governance processes and risk management. The depth and scope of the internal auditing sector is quite broad and can include things as diverse as IT controls, compliance with rules and regulations, reliability in financial reporting, and the efficiency of operations. Additionally, internal auditors may conduct operational audits and/or provide solutions for identified weaknesses in internal control operations.
Once one understands what an internal auditor is, grasping the term “Certified Internal Auditor” is simple. In short, a Certified Internal Auditor is one who passes a qualifying exam demonstrating his or her proficiency to operate within this sector.
Steps to Certification
Individuals who want to become a certified internal auditor should note that there are several simple steps involved in accomplishing this objective. According to The Institute of Internal Auditors, prospective certified internal auditors must agree to accept the program requirements, which include
- Eligibility requirements
- Exam confidentiality
- Code of ethics
- Continuing professional education (CPE)
Educational Requirements
Individuals who wish to sit for the certified internal auditor exam must also meet the program’s educational requirements. These include holding a four year degree (or its equivalent) from a university with accreditation. Individuals who do not hold a four year degree can also qualify by earning a two year education or five years of experience within the field of internal auditing. Individuals interested in taking the exam could also obtain seven years of verifiable experience in the field to meet the qualification requirements.
The Quality of Internal Audit Report
One of the primary responsibilities of the Certified Internal Auditor is to ensure that the internal audit report is of high quality. There are five objective measures that can be analyzed to ensure internal audit report quality. They include:
- Objectivity: Objectivity refers to ensuring that the opinions and comments within the report are as unbiased and objective as possible.
- Clarity: Clarity is the process of being simple and straightforward in the presentation of information.
- Accuracy: Accuracy refers to ensuring that the data contained within a report is accurate.
- Brevity: Brevity is the process of ensuring that your report is concise.
- Timeliness: Timeliness is the process of ensuring that the internal audit is released within a set deadline.
Expected Salary
The U.S. Bureau of Labor Statistics reports that internal auditors can expect to earn about $63,550 per year.
Related Resource: MBA in Finance
Conclusion
If you have given thought to the pursuit of a career in the field of accounting, you should know that doing so can provide you with a plethora of personal and professional benefits. Now that you have a basic answer to the question “What is a Certified Internal Auditor?,” you can decide whether this would be the right vocational path for you to pursue professionally.
