How to become an internal auditor

How to become an Internal Auditor

Becoming an internal auditor involves a combination of education, professional certification, and relevant work experience. Here is an overview of the pathway to the career:

High School Diploma
Complete your high school education or an equivalent qualification. Focus on subjects like mathematics, economics, and computer science.

Bachelor’s Degree
A bachelor's degree is generally the minimum educational requirement for a career as an internal auditor. These are common fields of study:

• Accounting – provides a strong foundation in financial principles, accounting standards, and auditing practices
• Finance – offers knowledge of financial management, investment analysis, and risk assessment
• Business Administration – covers a broad range of business topics, including management, operations, and organizational behavior
• Economics – focuses on economic theories, data analysis, and economic policy, which can be useful in understanding market trends and financial risks
• Information Technology (IT) / Information Technology Management / Management Information Systems / Computer Science – for those interested in IT auditing

Master’s Degree (Optional)
While not always required, a master’s degree can enhance an internal auditor’s qualifications and career prospects. A Master of Business Administration (MBA) with a concentration in accounting, finance, or a related field can provide advanced knowledge and leadership skills. Specialized master’s programs in accounting or finance offer deeper insights into accounting principles, financial analysis, and auditing techniques.

Relevant Coursework
Regardless of the degree, coursework that is particularly relevant for aspiring internal auditors includes:

• Auditing – courses covering internal and external auditing principles, standards, and practices.
• Financial Accounting – in-depth study of financial statements, accounting cycles, and reporting standards
• Management Accounting – focus on budgeting, cost analysis, and financial planning
• Taxation – understanding of tax laws and their impact on financial decisions
• Risk Management – courses on identifying, assessing, and managing business risks
• Information Systems – especially important for IT auditors, covering topics such as cybersecurity, data analytics, and IT governance

Entry-Level Positions
Start with entry-level positions in accounting, finance, or auditing to gain practical experience. This could include roles such as staff accountant, junior auditor, or financial analyst.

Internal Audit Experience
Seek opportunities within an organization’s internal audit department or with a consulting firm that provides internal audit services. Experience in specific areas, such as financial audits, operational audits, or compliance, is particularly valuable.

Advanced Roles
As you gain experience and build your credentials, you can pursue more senior positions, such as Internal Audit Manager, Director of Internal Audit, or Chief Audit Executive (CAE). Advanced roles often require extensive experience, advanced degrees, and leadership skills.

Professional Certifications and Organizations
There are several certifications and memberships in professional organizations that are relevant to a career in internal auditing. Among the most recognized are:

• Certified Internal Auditor (CIA) – Offered by the Institute of Internal Auditors (IIA), the CIA certification is the globally recognized standard for internal auditors. To earn the credential, candidates must meet educational and experience requirements and pass three exams, which cover the essentials of internal auditing, including governance, risk management, and control processes.
• Certified Public Accountant (CPA) – CPA certification is offered by various state boards of accountancy in the US. While primarily focused on accounting and external auditing, the CPA credential is highly respected in the field of internal auditing and provides a strong foundation in accounting principles and financial reporting.
• Certified Information Systems Auditor (CISA) – Offered by the Information Systems Audit and Control Association (ISACA), the CISA certification is specialized for IT auditors and focuses on information systems auditing, control, and security. It is valuable for those who work in or with IT departments.
• Certified in Risk and Information Systems Control (CRISC) – Also offered by the Information Systems Audit and Control Association (ISACA), the CRISC certification is useful for internal auditors involved in risk management and information systems control. The CRISC exam covers risk identification, assessment, response, and control.
• Certified Fraud Examiner (CFE) – Offered by the Association of Certified Fraud Examiners (ACFE), the CFE certification is useful for internal auditors involved in detecting and preventing fraud. Certification candidates must pass the CFE exam, which covers fraud prevention, detection, and investigation techniques.
• Certified Government Auditing Professional (CGAP)– Offered by the Association of Government Accountants (AGA), the CGAP certification focuses on government auditing and is designed for auditors in the public sector. The CGAP exam covers topics related to government auditing practices and standards.
• Global Institute of Internal Auditors (IIA Global) – This is the global arm of the IIA, representing the interests of internal auditors worldwide. It supports the local chapters and offers a wide range of resources and professional development opportunities.
• European Confederation of Institutes of Internal Auditing (ECIIA) – The ECIIA represents the interests of internal auditors in Europe, providing a platform for cooperation and exchange of information between national internal audit institutes across the continent.
• Institute of Internal Auditors (IIA) – Local Chapters – The IIA has local chapters around the world that provide localized support, networking opportunities, and professional development events for internal auditors in specific regions.

Continuing Education and Networking
Stay updated on the latest internal auditing standards, regulations, and best practices by participating in continuing professional education (CPE) programs. Engage with other professionals in the field through networking events, conferences, and professional organizations.