Internal Auditor Salary Trend in 2017

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Hello, this is Stephanie from IPasstheCIAExam.com. The internal audit salary is on an upward
trend given the increasing importance of internal audit within companies, more complex regulation,
and shortage of talents especially at the senior level. The CIA certification salary premium
Before we get into details, I should point out that CIA certification definitely adds
value to your career. You gain more respect, and higher salary. According to the latest IIA survey report,
the 471 respondents had an average salary of 93 thousand dollars, versus 65 thousand
dollars for those without certifications. We are talking about a 43% premium here. There could be other factors such as the number
of experience among respondents, together with their education level, and type of companies
they work for. But this is something to keep in mind if you
are looking for ways to enhance your career. Overview of internal audit salary in the US
Looking at the big picture, the US Bureau of Labor Statistics projects an 11% increase of employment in the accounting and audit industry, from 2014 to 2024. This is much higher than the overall projection
of 7% across occupation. Within the accounting and audit industry,
internal audit is not a particularly glamorous job, but is certainly hot in terms of staffing
needs. The salary across seniority in internal audit
increased by 5% last year. The jump from junior to senior positions is
also significant, as shown below. The following charts and data is sourced from
the 2016 Salary Guide for Accounting and Finance from Robert Half. All amount in US dollars. First-year internal auditors
You can expect an annual salary range of 52 thousand to 66 thousand dollars for a first-year
internal auditor in a medium-sized company, and 55 thousand to 67 thousand dollars in
a large company. The premium of working in a large company,
on average, is about 4%. Junior Internal Auditors
These auditors have 1 to 3 years of experience in this field. Annual salary ranges from 60 thousand dollars
to 82 thousand dollars in medium-sized companies, and 65 thousand to 87 thousand dollars in
large companies. The premium is 7%. As you move from first-year to those with
a few years of experience, salary increases by 15-25%. Senior Internal Auditors
You can expect a salary ranging from 78 thousand to 98 thousand dollars in medium companies,
and 84 thousand to 111 thousand dollars in large companies. Here you will see a bigger premium in working
at large companies, that is, 11% in this category, because large companies have
more complex situations to take care of, and need a higher salary to attract talents. Jumping from junior to senior internal auditors,
the increase in salary is more significant at 20% to 29%. Managers
Managers are getting 92 thousand to 127 thousand dollars in medium-sized companies, and 105
thousand to 151 thousand dollars in big companies. The premium of working in big companies is
even higher here at 17%. A promotion from senior to manager leads to an 18 to 29% increase in salary. Chief Audit Executive, Vice President, and
Internal Audit Director The bosses within internal audit get 119 thousand to 165 thousand dollars in medium sized companies; 144 thousand to 207 thousand dollars in large
companies; and 183 thousand to 280 thousand dollars if one works in companies with more
than 500 million dollars in revenue The data shows that, the bigger the
companies you work for, the higher the compensation. Almost all super big companies are publicly
listed, and therefore, you can expect a much higher responsibility from the CAE. The salary premium is 24% when compared to
the 200 to 500 million-dollar companies, and a significant 63% when compared to the 100
to 250 million-dollar companies. A Note on cost of living
The above statistics is based on the US average. If you live in big, expensive cities, you
will need to adjust the numbers upward, and vice versa if you work in small towns. Please refer to page 26 to 27 of the Robert Half report, with links at the bottom of this page. My thoughts
The salary level of internal audit professionals is very much in line with responsibility. At a lower level, with little experience and
little responsibility, you can expect a range of 50 thousand-ish to high 60 thousand dollars
depending on the size of the firm. As you move up the career ladder, the salary
range increases rather exponentially, given the much bigger responsibility as a supervisor
and gate keeper. The increase from senior to manager is notable:
the skill set is changed from mostly technical, to a combination of hard and soft skills. As you move further up to director position,
more sophisticated soft skills are required, and you will be rewarded handsomely. To see what soft skills are required, check
out this video on internal audit career path. I hope this video is helpful in showing you
the path of internal auditors in terms of salary and compensation. Feel free to drop a note in the comment section
below, or subscribe to my Youtube channel for updates. Thanks for watching, and see you in the next
video.

 

3 Responses

  1. nagendra yakasiri

    October 29, 2018 3:20 pm

    I am a Indian Chartered Accountant and now I am planning to do CIA. What are the opportunities for in USA & Europe

    Reply

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