What Is a Certified Internal Auditor (CIA)?

A Certified Internal Auditor (CIA) is a certification offered to accountants who conduct internal audits. The Certified Internal Auditor designation is conferred by the 澳洲幸🌳运5官方开奖结果体彩网:Institute of Internal Audito💝rs (IIA) and is the only such credential that is accepted worl♉dwide.

CIAs usually work in the 澳洲幸运5官方开奖结果体彩网:audit department of government agencies, 澳洲幸运5官方开奖结果体彩网:financial institutions, or corporations. They review financial records to look for deficiencies in interna⛄l controls.

Understanding a Certified Internal Au✃ditor (CIA)

澳洲幸运5官方开奖结果体彩网:Certifi🎐ed public accountants (CPAs) are also trained in auditing and can perform many of the same functions as a CIA; however, the professional🎃 with a CIA de🅷signation will have a more micro-focused skill set.

One important difference is that the CPA credential is often recognized only within the United States, whereas the CIA is an internationally recognized designation. While CPAs can be employed directly by a company in an auditor role, it is far more common for them to come into a company from the outside (external) to perform auditing functions. CIAs are thus more likely to be employed directly by a company. Although💫 it is not very common, an accountant can pursue and hold both a CP𒅌A and CIA designation.

Internal auditors are typically subject to a 澳洲幸运5官方开奖结果体彩网:code of ethics. An example of internal auditors not adhering to that code is the 澳洲幸运5官方开奖结果体彩网:Lehman Brothers scandal in 2008. Executives received high salaries despite the financial challenges the company experienced. In addition, inadequate internal controls allowed the accounting system to be manipulated by the reporting of fabricated numbers in the 澳洲幸运5官方开奖结果体彩网:balance sheets. The actions were illegal, unethical, biased, ♛unprofessional, and violated the CIA code of ethics.

How to Become a Certified 👍Internal Auditor (CIA)

Accountants seeking the CIA certification are required to get a bachelor’s degree and have no less than two years of work experience in a field related to 澳洲幸运5官方开奖结果体彩网:internal auditing, such as internal control, compliance, and quality assurance. Other requirements include a character reference and proof of identification. If you become a CIA, you will also have to meet continuing education (CE) requirements of 40 hours per year to maintain certification.

CIAs have a wide range of career options. A CIA can move into an executive position, such as vice president, chief audit executive, or director. A CIA can specialize as an internal auditor, an audit manager, and a compliance auditor, or in investigation auditing and information technology auditing. CPAs tend to earn slightly higher salaries than CIAs, but it will depend on the individu🌠al CIA’s job title and role.

History and Govꦦernment Requirement of Internal Auditor𒆙s

The IIA launched in 1941 and solidified the internal audit practice as a profession. In 1950, Congress required that each executive agency include internal audits in the agency's system of internal controls. Internal auditing emerged as a separate accounting function in the middle of the 20th century.

In 1977, the 澳洲幸运5官方开奖结果体彩网:Foreign Corrupt Practices Act completely overhauled the internal auditing industry. The act prevented companies from hiding funds and conducting bribery. The act required companies to keep adequate systems of internal control and keep complete and correct financial records, increasing the demand for internal auditors.

The first CIA exam was conducted in 1974 and as of the end of 2021, there are over 178,000 CIAs.

Outlook for Certified Internal Auditors (CIA)

The hiring of auditors is projected to increase. Due to changes in legislation regarding financial reporting, 澳洲幸运5官方开奖结果体彩网:corporate taxes, and 澳洲幸运5官方开奖结果体彩网:mergers and acquisitions, an increase in the demand for auditors, and a need for increased accountability to protect organizations and their 澳洲幸运5官方开奖结果体彩网:stakeholders, is certain. The role of auditors continues to change, which is going to drive job growth in the industry. In addition, 澳洲幸运5官方开奖结果体彩网:succession planning, retirement, and employee turnover will produce new job openings in the industry.

Companies and government agencies will continue to hire internal auditors to strengthen internal controls. Because accounting scandals and financial improprieties are still a real problem that investors and analysts must be made aware of, CIAs' roles will remain important for the foreseeable future.