Navigating the Path to Internal Audit: Internship Requirements and Career Development

Internal auditors play a crucial role in ensuring the financial health and operational efficiency of organizations. They maintain accurate records and compliant financial operations by performing regular audits to catch errors, waste, or fraudulent activities. They also identify short-term and long-term financial risks and opportunities. Aspiring internal auditors take similar steps as aspiring accountants. To access this career, it's essential to understand the necessary education, experience, and credentials. This article explores how to become an internal auditor, including the minimum internal auditor education requirements, experience, and credentials. We also highlight alternative paths and opportunities available to individuals hoping to break into the industry.

Steps to Take

Education

The most straightforward path to becoming an internal auditor is earning a bachelor’s degree in accounting. Programs with auditing or financial management specializations may be the most effective for graduates. Bachelor’s programs typically take four years to complete. However, without a professional license requirement, auditors can come from other disciplines, such as business or finance. These programs provide accounting fundamentals courses, along with many electives and specialization options. Master’s programs offer auditing specializations through financial control and management tracks.

Experience

Experience can come from internships or co-ops while in school or entry-level jobs. Typically, internships last for a semester or two during the senior year. Aspiring internal auditors can accelerate the process of gaining experience by pursuing accounting internships while still in school. Accounting bachelor’s programs regularly feature internships that provide targeted on-the-job training and mentorship for students, typically during the senior section of the program. Many auditors start as auditing clerks, learning to accurately code and fix issues in documents. Experienced professionals with accounting certificates or associate degrees may qualify for entry-level auditing jobs.

Credentials

Though not mandatory, professional certification can help auditors. Along with passing an exam, certifications may require a bachelor’s degree or a minimum amount of professional experience. Once certified, professionals may need to maintain their credentials with annual continuing education credits.

Internal Auditor Education Requirements

Internal auditors come from many educational backgrounds. While most employers and positions require a bachelor’s degree at a minimum, an associate degree and other credentials may be acceptable in some cases. A master’s degree can greatly improve a candidate’s employment prospects and earning potential. Accounting is the most straightforward major for aspiring auditors - particularly programs that offer auditing concentrations. Students can sometimes develop specializations by stacking auditing electives or pursuing targeted internships.

Read also: Continuing Education in IFS

Required Credentials for Internal Auditors

Once they meet the minimum internal auditor education requirements, professionals can improve their qualifications through continuing education and accounting certifications. The Institute of Internal Auditors provides several certifications and programs to help auditors advance professionally and earn higher pay with greater job security.

Professionals typically start with the internal audit practitioner program or the financial services audit certificate, which demonstrates entry-level skills in these fields through examination. The CIA credential requires a bachelor’s degree, internal audit practitioner designation, and five years of auditor experience. Finally, the CRMA credential requires the CIA credential and a minimum of five years of auditor experience.

Both the CIA and CRMA require candidates to pass an examination. Individuals must complete continuing professional education credits each year to renew their certifications. Internal auditors can also pursue advanced accounting degrees to improve their job responsibilities and salaries. A master’s in accounting, business, or finance can considerably improve an auditor’s professional opportunities.

Required Experience for an Internal Auditor

In addition to the internal auditor education requirements, these professionals may need experience to qualify for certain positions. Many auditors start as auditing clerks, learning to accurately code and fix issues in documents. Experienced professionals with accounting certificates or associate degrees may qualify for entry-level auditing jobs. Aspiring internal auditors can accelerate the process of gaining experience by pursuing accounting internships while still in school. Accounting bachelor’s programs regularly feature internships that provide targeted on-the-job training and mentorship for students, typically during the senior section of the program.

Alternative Career Path

An alternative path to becoming an internal auditor involves completing an educational program, acquiring an entry-level job, and completing additional training.

Complete an Educational Program

Finish a two-year associate degree or an accounting certificate program. Certificate programs typically take less than a year to complete.

Acquire an Entry-Level Job

Pursue an entry-level accounting or auditing job to build experience, such as an accounting or auditing clerk position.

Complete Additional Training

Once employed, entry-level accountants and auditors can advance their education and credentials while maintaining employment and building experience.

The Job Hunt

Finding the right employment opportunities can take time and patience, but job-seekers have many available resources to become internal auditors. While in school, students can leverage their internships and mentorship programs to earn full-time jobs or develop valuable relationships and references. Many schools host career fairs or networking events for candidates to learn about and apply to new opportunities. Students and new graduates can also join professional organizations to access job boards, conferences, and networking events. They can use the following public job boards, as well:

Accounting Jobs Today: Users can find accounting-related job posts filtered by job title and location.
Accountingfly: This site posts remote accounting and tax-related jobs across the country. The site allows users to upload resumes and search job posts.
Glassdoor: Glassdoor users can search through job posts and company information, including reviews and salary details.

Upward Mobility

With the right educational background and professional experience, internal auditors can move between accounting positions, such as external auditor or forensic accountant roles. They may need training or a certificate program to sharpen their skills, but these lateral opportunities are often available. With time and experience, internal auditors can also advance into more senior roles or positions with more responsibility. These may include financial analyst and financial manager careers. According to the Bureau of Labor Statistics (BLS), financial analysts earned a median annual wage of $101,910, while financial managers earned $161,700 as of May 2024.

Should I Become an Internal Auditor?

The internal auditing profession has many pros and cons. In general, these professionals enjoy positive growth projections and average salaries when compared to all occupations. With experience and continued education, auditors can receive higher salaries, increased job security, and opportunities for management positions. Internal auditors can pursue membership in various organizations and industries. This freedom and flexibility can be a comforting prospect for professionals at all stages of their careers. However, internal auditors face stressful periods at work, particularly during tax season or monthly and quarterly audits. While technology has made internal auditors more efficient, advancements in the field can also change their roles over time.

Internal Audit Internship Programs

Many organizations offer internal audit internship programs designed to provide students with hands-on experience in the field. For example, some programs allow analysts to work as either business or technology auditors in a nine-week program. Candidates can apply to either the business track or the technology track. The program typically begins with a week of core audit and soft-skills training, including communication and Excel best practices. You’ll make meaningful contributions to our global business operations on one of our audit teams, which support Asset & Wealth Management, Consumer & Community Banking, Commercial & Investment Bank, and Enterprise Technology. Our teams identify and analyze risks in our businesses and evaluate how we control those. You’ll also test controls by reviewing documents, meeting with management, and observing operations. Our technology teams focus on reviews of business applications, data management, global infrastructure, digital technologies, and cyber/information security.

These internships are designed for professionals from a variety of backgrounds, experiences, and skills. They expect you to have the highest standards of integrity and professionalism with a strong work ethic. You’ll need to have strong attention to detail and be able to see the big picture. We’re looking for independent, analytical thinkers who can quickly adapt to new situations. We’re looking for those who are honest, curious, collaborative, well-rounded, and motivated. This internship can set up your next career move.

FAQ

What education do you need to be an internal auditor?

According to the BLS, a candidate needs a minimum of a bachelor’s degree to become an internal auditor. They should study accounting and specialize in auditing, if possible.

Are there certifications for internal auditors?

The internal auditing career path has no mandatory certifications, but the CIA and CRMA credentials can be helpful.

How long does it take to become an internal auditor?

Earning a bachelor’s degree usually takes about four years, but internal auditors can take different paths to the field, such as a two-year associate degree or a certificate program, which may take less than one year.

Is experience needed to become an internal auditor?

Many organizations hire internal auditors with no experience. These professionals usually need a bachelor’s degree at a minimum.

What are the challenges of being an internal auditor?

Internal auditors have to be very precise in their work. During their audits, they may encounter high-stress situations, which can be difficult to manage.

Key Takeaways

A bachelor’s degree in accounting provides the best foundation for internal auditors.
Optional certifications like CIA or CRMA can help boost salary and job security.
Alternative paths include associate degrees, certificate programs, and continuing education while working.
Internal auditors help organizations maintain accurate records and compliant financial operations.
They perform regular audits to catch errors, waste, or fraudulent activities.
They also identify short-term and long-term financial risks and opportunities.

tags: #internal #audit #internships #requirements