"Many corporations are beginning to understand these benefits and many of my General Auditor colleagues are being promoted to Chief Financial Officer and Controller positions," said Anthony J. Ridley, CIA of Ford Motor Company, in recent brochure.* "The implication is that internal auditing may not be a job for life, but it will be a profession for life," he said.
Internal auditing, as a profession, is ever changing as it evolves with the demands of new technologies, government regulations and changes within the workplace. For many within the profession, pursuing the designation of Certified Internal Auditor (CIA) is a powerful means for moving up the career ladder quickly and gaining credibility from associates and managers.
The CIA Designation
The CIA is a "seal of approval" from The Institute of Internal Auditors (IIA), the organization which administers the CIA exam. The CIA designation originated in 1974 to indicate a professional level of competence in internal auditing. According to The IIA, "As a CIA, you will be an acknowledged expert in internal auditing."
The CIA is the only accreditation that is international for the profession. And, with nearly 25,000 CIAs worldwide, The IIA tags this designation as "the global mark of excellence in internal auditing."
The CIA Exam
To be eligible to sit for the CIA exam, internal auditors must have a bachelor's degree (or equivalent), at least 24 months of internal auditing experience (or equivalent) and a character reference from a manager or another CIA. In addition, CIAs must agree to comply with the code of ethics set forth by The IIA.
The CIA exam is administered by The IIA in May and November and contains four sections: internal audit process, internal audit skills, management control and information technology, and the audit environment.
- Internal Audit Process
This section of the exam tests internal auditors on the theory and practice of internal auditing. Focus in this section includes auditing, professionalism, and fraud detection, reporting and investigation.
- Internal Audit Skills
The second section of the exam evaluates skills in problem solving, reasoning, communication and relationships with auditees. Special areas of testing include behavior skills, statistics and math.
- Management Control and Information Technology
This section examines internal auditors' understanding of basic business disciplines essential to their practice, including organization and management, information technology, managerial accounting and quantitative methods as a management tool.
- The Audit Environment
The final section of the exam covers more traditional areas of business such as financial accounting, finance, economics, government, taxes, marketing and international developments relevant to internal auditing.
To maintain the CIA designation, internal auditors must complete 80 hours of Continuing Professional Development (CPD) every two years. The IIA offers CPD programs, and all CPA-related CPE courses transfer over as CPD credits.
The Future of Internal Auditing
The internal auditing profession is emerging into the 21st century as it addresses new demands brought forth with the new century and new technologies. The IIA believes that data security will be the "greatest corporate risk in the next century," and that CIAs' roles with organizations' technology will contribute greatly to eliminating many new problems that may arise.
In addition, CIAs will help to assure the success of organizations as they deal with changing economic conditions, a shift in organizational focus to total quality management and the breaking down of traditional hierarchical structures. Internal auditors possessing the CIA designation will be a step ahead with more knowledge and credibility within their profession and their organization.
* Internal Auditing: Adding Value Across the Board
