Internal Audit

Typically, people who work as internal auditors perform audits of specific divisions or operational units of a company. Also, it is important to note that Sarbanes-Oxley, Section 404 has been implemented to prevent or detect fraud. Under its provisions, public companies are required to have strong controls, which should be monitored on an annual basis. The implementation and monitoring of these controls is charged to each firm’s internal auditors. As a result, there has been a growing demand for internal auditors over the past few years, which has created a lucrative exit opportunity for public accountants working for the Big Four and other public accounting firms.

To become an internal auditor, you need a strong understanding of finance as well as accounting. Most auditors need at least a bachelor’s degree in accounting, business or a similar field. People who work as internal auditors don’t need to be CPAs since they aren’t public accountants. However, many auditors and accountants opt to obtain certification and become CPAs to advance their careers. In addition, the Institute of Internal Auditors offers training programs such as seminars and conferences for internal auditors.

Management accountants often start out as junior internal auditors or trainees for other accounting positions. As they advance in their organizations, they may rise to accounting manager, controller, chief cost accountant, budget director or manager of internal auditing. Larger publicly-traded companies generally have an internal auditing department. A Chief Audit Executive (CAE) usually heads up the department.

Abbott, Langer Association Surveys compiled overall compensation figures within the accounting field in 2005. According to its report, the median annual income (salaries plus cash bonuses and cash profit sharing) for auditors was $40,884 and senior auditors earned $49,615. The salary for chief corporate audit officers was $86,000. The Bureau of Labor Statistics (BLS) expects the employment of accountants and auditors to increase by 18 percent between 2006 and 2016.