The study found that 91 percent of employers surveyed indicated they are likely to increase internal auditor salaries next year. In fact, a full 69 percent are planning to provide increases to 100 percent of their audit staff in the next 12 months, versus 34 percent for their entire workforce.

The GAIN study, conducted in May, also found that although the majority of employers will continue to increase internal auditor salaries in the coming year, the average percentage of increase is beginning to wane. Audit staff increases for the next year will be 0.5 percent lower, with increases averaging 3.8 percent, rather than the 4.3 percent average granted to audit employee during the past 12 months.

"The frenzied period spawned by the reporting and compliance requirements of the U.S. Sarbanes-Oxley Act of 2002 -- when many employers felt compelled to pay whatever the market would bear for internal audit skills -- is waning and being overshadowed by the current economic uncertainty,” said Harrington & Associations Principal Consultant Judith Harrington, CCP. "Now that the legislation is a fact of life and they have aligned systems and staffing to ensure their ability to comply, it appears that those in the internal audit profession are no longer being singled out as the target of recruiters as they once were.”

Employers did indicate that various factors positively affect compensation levels.

• Size does matter. Internal auditors who work for employers with annual revenues of more than US $1 million have median salaries that are nearly $12,000 more than those who work for smaller organizations.
• Qualifications count, too. Employers view internal auditors with an educational background that has specifically prepared them to work in the audit profession as being worth more in terms of median salary.
• Similarly, internal audit professionals with certifications are paid more than those who are less credentialed. For example, internal auditors holding The IIA's Certified Internal Auditor (CIA) designation, are paid approximately $7,800 more than someone holding no certification at all.

The study also indicated that certain positions and sectors within the internal audit profession are seeing larger than average compensation. Information technology audit directors, for example, had a higher median salary than chief audit executives, which may reflect the growing demand for audit professionals with technology expertise. Public accounting firms reported some of the highest increases during the past 12 months, with raises averaging 6 percent. The consulting sector posted similar rates of increases for internal auditors for the last year at 6.3 percent – nearly double what other employees in that sector received. And internal auditors working in the advertising industry are expected to enjoy average increases of 7 percent next year.

"Although the flurry of growth internal auditing has enjoyed over the past few years might be slowing some, the fact that we still are receiving higher average salary adjustments compared to other employees in the organization is a sign that this is a stable and valued profession,” said IIA Global President David Richards, CIA.

While base compensation adjustments during the next 12 months are projected to be lower for audit staff than in the past, corresponding information indicates that this is consistent with how employers are staging for weaker economic conditions. Employers indicated that popular strategies for attracting and retaining internal auditors include tuition reimbursement, paid time off, flexible work schedules, wellness programs, and automobile and travel reimbursement.