2015-1415 MEM-Membership Career Guide Update - FNL-LOW - 0

Rise to Your
Internal Audit
Career Potential
The IIAs 2016 Career Guide
The IIAs Career Guide

RISE TO YOUR INTERNAL AUDIT CAREER POTENTIAL
Rise to Your
Internal Audit
Career Potential
The recognition of internal audits value continues to increase, as evidenced by findings in
The IIAs Audit Executive Centers 2015 North American Pulse of Internal Audit Report:
Navigating an Increasingly Volatile Risk Environment (2015 Pulse Report). Forty-two percent 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.
The Institute of Internal Auditors
TALENT DEMANDS
2022 1,442,200 Accountants & Auditors
2012
{13%}
Increase
Source: 2015 U.S. Bureau of Labor Statistics,

Employment Projections Program

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 internal audit work and the skills necessary to
execute it. In a 2015 blog post, Chambers commented The days of the internal audit function being focused primarily 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 financialrelated topics. And skill sets are evolving
accordingly.
4 out of 10 internal
auditors receive less
than 40 hours of
training per year.
According the 2015
Global Internal Audit CBOK Study
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 shortage is a growing skill gap. When asked to describe why they were experiencing skill gaps,
of respondents to The IIAs Audit Executive Centers 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 IIAs 201516
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 chairmans 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

(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 number needs to increase is shared by Theresa Grafenstine, inspector 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.
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
Number of Hours Internal Auditors Invest in Training Annually

12
39%
12
6
Less than 40 hours
28%
6
Exactly 40 hours
12
33%
6
Exceeds 40 hours
Source: 2015 Global Internal Audit CBOK Survey
Smart Investing
While its clear the time practitioners need to invest in professional training and development 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 Internationals 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 regulation (45 percent).

Stakeholders Top Areas for Increased Internal Audit Focus
45%
52%
Compliance &
Regulation
58%
Operational Risks
62%
IT & Data
Management
Risk Management
Processes
Source: KMPG Internationals Global Audit Committee Survey, 2014
Respondents to the survey acknowledged the evolution of internal audit, with more than 80
percent indicating that internal audits 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 developing their teams to meet the challenge. But the top five areas where they have faced hiring
challenges and identified gaps in their current teams skill levels, according to the 2015
Pulse Report, include:
AREAS OF HIRING DIFFICULTY
RANK
SKILL
ITGeneral
Cybersecurity & Privacy
Data Mining & Analytics
Industry-specific Knowledge
Analytical/Critical Thinking
AREAS OF SKILL DEFICIENCIES
RANK
SKILL
Quality Controls (e.g. Six Sigma)
Data Mining & Analytics
Cybersecurity & Privacy
Forensics & Investigations
ITGeneral

Top 4 Most Recruited

Skills by CAEs
While 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 internal 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
Business Acumen
Analytical/Critical
Thinking
Communication
Skills
Industry Specific
Knowledge
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 various 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 Youre 4 for 4

Analytical/Critical Thinking
TOP SKILLS SOUGHT

AFTER FOR NEW
INTERNAL AUDITORS
96
Business Acumen
Analytical/Critical
Thinking
Communication
Skills
of CAEs Highly Value

This Expertise
Industry Specific
Knowledge
The ability to break down information, evaluate it, and understand how one component affects another is invaluable. Combine that skill with the ability to examine assumptions, discern 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 considering 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, internal 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 theyll 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 SOUGHT
AFTER FOR NEW
INTERNAL AUDITORS
96%
Business Acumen
of CAEs Highly Value

This Expertise
Analytical/Critical
Thinking
Communication
Skills
Industry Specific
Knowledge
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 communicate 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 irrelevant 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 respondents citing that they periodically interview management to identify
changes in the organizations 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 professional development opportunities such as The IIAs courses Communication 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 Success 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 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.
Kwang Ho Sung, vice president and head
of internal audit at a major South Korean
bank

Business Acumen
TOP SKILLS SOUGHT

AFTER FOR NEW
INTERNAL AUDITORS
Business Acumen
Analytical/Critical
Thinking
Communication
Skills
80%
of
CAEs Highly Value
Industry Specific
Knowledge
This Expertise
According to PwCs 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 business acumen skills garnered the number three spot in the 2015 Pulse Reports list of most
recruited skills. These skills were considered extremely essential by 30 percent of respondents 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 Abdulrahman al Harthy, chief audit executive, Oman Oil Group, explains in PwCs 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 Caruso, 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 Harringtons 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 IIAs
courses Creative Problem Solving Techniques for Internal Auditors and Essential Skills for
Todays Internal Auditor, as well as those suggested through IIA Career Map, can prove to
be an effective formula.

Industry-Specific Knowledge
TOP SKILLS SOUGHT

AFTER FOR NEW
INTERNAL AUDITORS
69%
Business Acumen
of CAEs
Highly
Value
Analytical/Critical
ThisThinking
Expertise
Communication
Skills
Industry Specific
Knowledge
According to the The IIAs 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 related 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 endeavors. To be taken seriously and have both their skills and insights valued within the organization, 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 knowledge. For instance, Barclay Simpsons Compensation and Market
Trends 2015, Internal Audit Report stated Investment banks
have sought candidates with good capital markets products exposure 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.
10
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 Position
1. Put it in Writing
Develop a Vision Statement
Before 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:
MY DEVELOPMENT PLAN
CEO
Titles I would
like to hold.
Areas of expertise
I want to
explore.
Industries/ types
of organizations
I might excel in.
Would I consider
relocating
for a job?
What are my
salary and benefit
expectations?
Create a Professional Development Plan

With 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:
31%
33%
didnt feel they had been trained adequately by their employer.
rated their organizations training and career development opportunities

as excellent or good.
76%
placed the responsibility for providing a clear career development path on their employer.
11

With those numbers, simply taking personal responsibility for developing 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. Using 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 Accomplishments
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, published by The Society of Human Resource
Management (SHRM)
This 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 Spiders Web
Most 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 spiders 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
12

Research Center, the average American has approximately 634 contacts. Additionally, the
August 2014 article, Professional Social Networks: Whats Average, and How Can You Increase 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 its
important to remember that the quality of the connection and the maintenance of the relationship 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.
YOUR SOCIAL MEDIA NETWORKING TOOLS

490 Median Connections for Users
229 Median Friends for Users
130 Median Followers for Users
Source - Pew Research Center
Strengthen Your Web

Once you have recognized all the threads of possible connections you can make with your
web, you have to maintain each threads strength. This requires regularly checking in with
the members of your network, whether its through quick emails and texts, social media
posts, or in-person meetings. While small talk and casually chatting are inevitable, to effectively 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.
13

Leverage One of Your Strongest Threads

A mentor can be a tremendous source of support and one of your greatest advocates, making 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 friends recommendation, and even a different discipline. The important
thing is that you trust and respect your mentors 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 Protivitis 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 contacts/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 develop 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.
14

It should come as no surprise that strong soft skills build rapport with stakeholders and
enhance an internal auditors credibility. As Nicola Rimmer, director in Barclays Internal
Audit (London) and past president of The IIAUK & 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 Organizations Strategic Plan

The 2015 CBOK Report, Driving Success in a Changing World, cites that 57 percent of respondents 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 organizations overarching goals and their strategy for realizing them, how
can you possibly know how your responsibilities fit into the equation?
43 percent say
their internal
audit department
is not fully
aligned with the
organizations
strategic plan.
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 dont understand the business. If you understand an
organizations strategy and how it cascades down through the organizations objectives and you use that in your risk management and audit planning youll start
to talk more like management, says Thomas. They will start to recognize that
you are starting to understand their business. Youll 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.
ORGANIZATIONAL
STRATEGIC PLAN
Indentify Needs
and How to Meet
Needs to Fulfill
Objectives
Assess Impact
of Initiatives
Measure Results
Strategic Planning
Prepare for
the Future
ACME Industries
Strategic Plan
Put Initiatives
into Action
Bugeting and
Resource
Allocation
Develop Unit Plans

Implement Plans
Consider Revisions
15

5. Invest in Yourself
When reflecting on the The IIAs 2015 Global Internal Audit Common Body of Knowledge
(CBOK) Study: Driving Success in a Changing World: 10 Imperatives for Internal Audit
reports 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 Harringtons 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 organizations 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.
800 HOURS OF DEVELOPMENT MAY BE UNREALISTIC
40
HOURS
Going from 40 to 80 hours is a major

investment in opportunity and growth.
80
HOURS
Source: 2015 Global Internal Audit CBOK Report,

Driving Success in a Changing World
16

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.
YOUR PERSONAL BRAND IS:
What you wear
What you do
What you say
BRAND
What
opportunities
you pursue
17

3 Compelling Reasons
to Earn a Professional
Internal Audit
Certification
According to Robert Halfs 2015 Salary Guide, depending on company size, in 2015 projected 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 Halfs 2015 Salary Guide cited The IIAs Certified internal Auditor
(CIA) as one of todays 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*

1-3 Years Experience
57,500 83,250
Sr. Internal Auditors
74,000126,250
Managers
87,500144,250
*According to Robert Halfs 2015 Salary Guide
18

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 IIAs Audit Executive Centers 2015 Internal Audit Compensation Study, in the United
States, the median salary for those with a masters degree is 12 percent higher than those
holding a bachelors 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 masters degree versus earning a professional 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.
19

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 Growth

Professional development is a journey. Demonstrating your knowledge, acumen, and leadership 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 commitment to the practice of internal auditing.
Wherever your journey takes you, theres 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.
20

Internal Audit Practitioner

The 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 apply 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:
Smart business leaders

surround themselves with
those who can anticipate
the effects of new technologies, globalization,
and geopolitical change
on an organizations operations 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.
Internal Audit Leadership.
Organizational Leadership.
Ethical Leadership.
Innovation and Change Leadership.
Lawrence J. Harrington, CIA, QIAL,

CRMA, Chairman of The IIAs Global Board
of Directors, 201516, Vice President
Internal Audit, Raytheon Company
21

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. Whats 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 certified 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 internal 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.
22
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 Together

Rising 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 oxygen 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.
23
10/2015-1415
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247 Maitland Avenue, Altamonte Springs, Florida, 32701-4201 USA
T: +1-407-937-1111 F: +1-407-937-1101
www.globaliia.org www.theiia.org
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Rise to Your

The IIAs Career Guide

The Institute of Internal Auditors

Source: 2015 U.S. Bureau of Labor Statistics,

The IIAs Career Guide

Turning Challenge Into Opportunity

Global Internal Audit CBOK Study

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

28% cited insufficient compensation.

25% mentioned lack of resources for skills development.

The Institute of Internal Auditors

The IIAs Career Guide

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

Number of Hours Internal Auditors Invest in Training Annually

Source: 2015 Global Internal Audit CBOK Survey

The Institute of Internal Auditors

The IIAs Career Guide

Stakeholders Top Areas for Increased Internal Audit Focus

Source: KMPG Internationals Global Audit Committee Survey, 2014

Cybersecurity & Privacy

Data Mining & Analytics

Quality Controls (e.g. Six Sigma)

Data Mining & Analytics

Cybersecurity & Privacy

Forensics & Investigations

The Institute of Internal Auditors

The IIAs Career Guide

Top 4 Most Recruited

TOP SKILLS SOUGHT

The Institute of Internal Auditors

The IIAs Career Guide

Ensure Youre 4 for 4

TOP SKILLS SOUGHT

of CAEs Highly Value

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

The Institute of Internal Auditors

The IIAs Career Guide

of CAEs Highly Value

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

Dynamic and compelling presentations.

Regular, well-timed, and appropriate conversations.

The Institute of Internal Auditors

Excellent communication skills and business

The IIAs Career Guide

TOP SKILLS SOUGHT

The Institute of Internal Auditors

The IIAs Career Guide

TOP SKILLS SOUGHT

The Institute of Internal Auditors

Internal auditors must

The IIAs Career Guide

5 Strategies to Land Your

Create a Professional Development Plan

didnt feel they had been trained adequately by their employer.

rated their organizations training and career development opportunities

The Institute of Internal Auditors

The IIAs Career Guide

Document Your Accomplishments

Gauge your current bandwidth.

Prepare for performance reviews.