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What is a Certified Internal Auditor and What Do They Do?

Updated June 5, 2025

what is a certified internal auditor

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Are you obsessed with true crime podcasts? Do you have every Sherlock Holmes novel? Or maybe, you can’t get enough of the Ace Attorney series.

If any of that sounds like you, you’re in the right place! Certified Internal Auditors are the detectives of the finance world.

Certified Internal Auditors are professionals who specialize in evaluating a company’s internal controls, financial records, and risk management systems. Earning the CIA designation can open doors to diverse career opportunities, solidify your expertise in internal auditing, and lead to boosted earning potential.

Today, we’re going to solve the mystery of what a Certified Internal Auditor does, how to become one, and the skills and requirements needed to succeed in this field.

Key Takeaways

  • Certified Internal Auditors Protect Companies: CIAs ensure organizations follow regulations, safeguard assets, and manage risks effectively.
  • CIA Certification Requires Education and Experience: You’ll need a bachelor’s degree and a minimum of one to two years of relevant experience to qualify.
  • The CIA Exam Has Three Parts: The exam covers essential auditing skills, real-world practices, and business knowledge.
  • High Earning Potential: CIAs earn an average of $76,000 per year, with opportunities for higher salaries with additional years of experience and in specialized roles or industries.
  • Globally Recognized Certification: The CIA designation is internationally respected, offering opportunities to work with organizations worldwide.

What Does a Certified Internal Auditor Do?

As I mentioned before, Certified Internal Auditors are like financial detectives.

They dig deep to uncover issues, track down inconsistencies, and make sure companies are playing by the rules. From spotting red flags to building safeguards, they work to protect a company’s assets and reputation. Here’s a closer look at some of their primary responsibilities:

  • Internal Audits: CIAs regularly conduct internal audits, assessing various departments and processes within a company to identify risks and recommend improvements. This includes reviewing financial records, checking compliance with regulations, and ensuring efficient use of resources.
  • Risk Management: CIAs play a big role in identifying risks that could affect a company’s bottom line. Whether it’s potential fraud, financial mismanagement, or ineffective internal controls, CIAs evaluate and provide solutions to mitigate these risks.
  • Internal Controls and Compliance: Ensuring that a company’s internal controls are effective and up to date is a top priority. This involves checking policies, financial statements, and operational practices to confirm everything aligns with industry standards and regulations.
  • Data Analytics and Reporting: A CIA must be comfortable analyzing data. They use data analytics tools to detect irregularities, measure performance, and make informed recommendations. They often report their findings to senior management or the board of directors to help guide the company’s decision-making.

So, if you’re detail-oriented, enjoy financial analysis, and love the idea of uncovering potential improvements in company processes, internal auditing might be a great fit for you.

How Do You Become a Certified Internal Auditor?

To become a Certified Internal Auditor, you’ll need to meet a few education and experience requirements, pass the CIA exam, and earn your certification through the Institute of Internal Auditors (IIA).

Education and Experience Requirements

  1. Bachelor’s Degree: A bachelor’s degree in accounting, finance, business, or a related field is typically required, with exceptions for a lengthy work history in the industry. Some professionals opt to take additional accounting or auditing coursework, and a few even pursue a master’s degree, though it’s not mandatory.
  2. Experience Requirement: The IIA requires that candidates have professional experience in internal auditing. The amount varies depending on your educational background. For instance:
    • With a bachelor’s degree, you’ll need two years of internal auditing experience.
    • A master’s degree may reduce this requirement to one year.
  3. Character Reference: As a final step before certification, candidates need a character reference from a supervisor, a current CIA, or an IIA professional to vouch for their ethics and qualifications.

The CIA Exam

The CIA exam is a rigorous three-part exam that tests your knowledge of internal auditing standards, risk management, and control techniques. Here’s what each part covers:

  1. Part 1: Essentials of Internal Auditing – This section covers the basics of internal controls, risk management, and governance.
  2. Part 2: Practice of Internal Auditing – This part dives into practical auditing skills, such as conducting engagements, managing audit work, and data analysis.
  3. Part 3: Business Knowledge for Internal Auditing – This section tests your understanding of business acumen, financial management, and IT.

You can expect to spend several months preparing for the CIA exam, and many candidates use study materials, mock exams, and even online review courses to improve their chances of passing. The pass rate varies, but it’s usually around 40% to 50%. Therefore, putting in the prep time is crucial to passing.

Skills You Need as a Certified Internal Auditor

Being a successful CIA requires a mix of technical skills and soft skills. Here are some of the top skills that make an internal auditor stand out:

  • Analytical Skills: CIAs need to analyze financial statements, identify trends, and find areas of concern within data sets.
  • Attention to Detail: A small error in financial reporting can have big consequences, so accuracy is essential.
  • Communication Skills: CIAs often present their findings to management. The ability to communicate complex information in a clear and concise way is key.
  • Problem-Solving Skills: When they uncover issues in an organization, CIAs must propose effective solutions and recommend improvements.
  • Ethics and Integrity: CIAs handle sensitive information and must adhere to strict ethical standards.

Earning Potential and Job Outlook for Certified Internal Auditors

Wondering what kind of salary does a CIA make? Here’s what to consider.

  • Average Salary: CIAs earn an average salary of around $76,000 per year, though it can vary depending on factors like experience level, industry, and location. Seasoned internal auditors in larger firms or specialized industries can earn six-figure salaries.
  • Job Demand: The demand for Certified Internal Auditors is strong and expected to grow. As businesses face increasing regulatory scrutiny, the need for skilled internal auditors who can help with compliance and risk management is on the rise.
  • Advancement Opportunities: Many CIAs move up the career ladder into roles like Senior Internal Auditor, Internal Audit Manager, or even Chief Audit Executive. CIAs also have the flexibility to work in various industries, from healthcare and government to finance and information technology.

Benefits of Becoming a Certified Internal Auditor

Besides the career growth and solid earning potential, there are a few other reasons to consider the CIA certification:

  • Internationally Recognized Designation: The CIA is globally recognized, making it a valuable credential if you’re interested in international opportunities.
  • Demonstrates Expertise and Commitment: Becoming certified proves to employers that you’re committed to the field of internal auditing and that you possess a high level of knowledge.
  • Potential for Increased Responsibility: As you gain experience and prove your capabilities, you’re likely to be trusted with more responsibility, such as leading audits or advising on risk management strategies.

Steps to Start Your CIA Journey

Does a career in internal auditing sound like the perfect fit? Here are some steps you can take to get started.

  1. Pursue an Accounting or Auditing Program: Start by completing a bachelor’s degree in a relevant field, and consider courses in accounting, finance, or business.
  2. Gain Relevant Work Experience: Try to land a job in accounting or as an internal auditor right out of college. Many companies hire entry-level auditors, allowing you to build the experience required for the CIA exam.
  3. Study for the CIA Exam: Make use of mock exams and review courses to prepare for each part of the exam. The exam covers a lot of ground, so a solid study routine is essential.
  4. Get Your CIA Certification: Once you’ve passed all three parts of the exam and met the experience requirements, you’ll officially become a CIA and can add this valuable designation to your resume.

Conclusion

If you love details, data, and discovering opportunities for improvement, pursuing the path to CIA certification could be an amazing choice for you and your future.

After all, CIAs play a vital role in helping businesses operate efficiently and responsibly. So, your career will be lucrative, and you can also look forward to a position where your ideas and opinions truly matter.

With the low pass rates of the CIA exam, chasing this career might feel intimidating. However, the rewards are well worth your time, energy, and effort. And if you’re passionate about finance, I know you can go as far as you dream of going in this field.

FAQs

What is a Certified Internal Auditor (CIA)?

A Certified Internal Auditor (CIA) is a financial professional who evaluates internal controls, financial practices, and risk management processes within organizations. CIAs also focus on quality assurance in internal audits to maintain accuracy and compliance.

What qualifications do I need to become a CIA?

To become a CIA, you’ll need a bachelor’s degree, usually in a finance or accounting program, plus one to two years of relevant experience in auditing or internal control.

How difficult is the CIA exam?

The CIA exam is known to be challenging, covering a wide range of topics across three sections. Each internal auditing part focuses on different skills, and many candidates use study guides and mock exams to prepare.

What salary can I expect as a Certified Internal Auditor?

The average salary for a CIA is around $76,000 per year, though this can vary depending on experience, location, and industry.

Is the certified internal auditor certification recognized internationally?

Yes, the certified internal auditor designation is globally recognized, which makes it valuable for those seeking opportunities to work abroad or with multinational companies.

Bryce Welker is a regular contributor to Forbes, Inc.com, YEC and Business Insider. After graduating from San Diego State University he went on to earn his Certified Public Accountant license and created CrushTheCPAexam.com to share his knowledge and experience to help other accountants become CPAs too. Bryce was named one of Accounting Today’s “Accountants To Watch” among other accolades.