Careers in Internal Auditing

[gin]

Hi
Anybody know what a career in Internal Auditing is like (non CA but getting a CIA)? Could you please provide me with details regarding work hours, salary ranges, employment prospects, etc. I am told its a subset of private accounting. What are the long term prospects in terms of branching out to other areas in finance and accounting?

Thanks

[Magnus]

Hi
Anybody know what a career in Internal Auditing is like (non CA but getting a CIA)? Could you please provide me with details regarding work hours, salary ranges, employment prospects, etc. I am told its a subset of private accounting. What are the long term prospects in terms of branching out to other areas in finance and accounting?

Thanks

I am looking to get into this field myself. I have a CA but really a CIA would be more useful, but is tough trying to get up the motivation to hit the books after what I have been through the last few years.

From what I have gathered, work hours are normal 9 to 5, with some overtime occassionally. Salary is a decent and typical for an employee in a profession and it seems employment prospects are fair to good. I would not really consider it a branch of accounting, more a branch of auditing because you do operational audits more than strict financial auditing - I think the professional skill is in auditing technques rather than knowing GAAP. Perhaps the one downside is that you are not really well liked by others in the company because you are looking over their shoulder and checking on them.

[dandy2008]

How come there isn't a Canadian CIA designation ?

[mannyb]

I worked as an Internal Auditor in the banking industry for around 6 years. It was good career to really understand risk but the travelling can really tire you out.

[djnorm112]

I worked as an Internal Auditor in the banking industry for around 6 years. It was good career to really understand risk but the travelling can really tire you out.

Hey Mannyb

what was your career progression like as an internal auditor? Does your salary jump year to year much?

people say you only do internal audit for around 2 years and you end up doing something else within the same company?

Where exactly did you end up travelling to? I figure the salary compensates you for travelling given i hear it is relatively 9-5 with min OT.

I was looking at some internal auditing job for the IB banking division of a major cdn bank. lol i guess they really need to check up those IB guys nowadays...

[mannyb]

I started off auditing at a finance company (Trans Canada Credit-now known as Wells Fargo Financial) mostly throughout Canada. Then we were bought out by Norwest Financial so I audited throughout North America. Then eventually I went to internal audit with National Trust and travelled throughout Ontario and then eventually internal audit with Scotiabank mostly in the GTA area. IA is a great job as it exposes you to many areas of the bank as well as it exposes you to upper and executive level people. You learn a lot as you can be asked to audit operations, cash management, treasury, retail banking, commercial banking and in your case investment banking. I found the job for the most part quite fun and the hours tend to be 8:30 ish to 6 ish. However, if you are the auditor in charge your hours will be longer as you have to roll up the other auditor's work into the report. Or if there is a weakness in internal control or you discover a defalcation, then your hours are very long.

The compensation is quite good but I find the compensation in front end sales in the bank to be better. If you're a good salesperson, the bonus part of your compensation allows you to make more then a typical internal auditor.

However, as a learning career, internal audit is very beneficial and you can live a jet set lifestyle. If you're travel schedule is extensive, I found the average career is in the 2 to 3 year range. If you're more local then there were some lifers in IA. Scotiabank wanted to pool me in with the international audit group and that's when I decided to make the change into commercial banking. I didn't want to do the international travel schedule. I was single for most of my audit career but having a family and travelling internationally...well let's just say you may not stay married for long.

[djnorm112]

thanks for the insight Mannyb

most fresh CAs get high 70s to low 80s for internal audit. Is there much progression beyond this??

Besides transferring to different internal audit groups where else would one transfer to?

[gin]

thanks for the insight Mannyb

most fresh CAs get high 70s to low 80s for internal audit. Is there much progression beyond this??

Besides transferring to different internal audit groups where else would one transfer to?


I'd like to know this as well. Would having internal auditing experience make you more attractive to prospective employers?

[Magnus]

thanks for the insight Mannyb

most fresh CAs get high 70s to low 80s for internal audit. Is there much progression beyond this??

Besides transferring to different internal audit groups where else would one transfer to?

From what I have seen, its more like low 60s - after all, most new CAs are only 2 or 3 years out of school. and still have quite a bit to learn, especially when transferring from public acct to industry. I think we would need 5 years or so after that to hit 80K in internal audit, and this would be close to what you top out at unless you get into management.

[djnorm112]

From what I have seen, its more like low 60s - after all, most new CAs are only 2 or 3 years out of school. and still have quite a bit to learn, especially when transferring from public acct to industry. I think we would need 5 years or so after that to hit 80K in internal audit, and this would be close to what you top out at unless you get into management.

hmm i guess im thinking more GTA here...i know people doing internal audit at the banks and larger corps...who have 3-4 years of experience with some big 4 background get high 70 and if they are lucky 80

usually senior one transitioning to senior 2...types

i think the salary for senior 2 in gta is 73-75k so makes no financial sense for most people to take a huge pay cut if they get paid in the 60s despite probably a much more relaxed atmosphere.

senior 1 is 63K...

[poedua]

I'd like to know this as well. Would having internal auditing experience make you more attractive to prospective employers?

Well, if you have an accountant with a lot of auditing experience and another accountant with a lot of general financial management experience - i.e financial statement prep, budgeting prep, investment / capital project experience and overall managing experience ( i.e department staff )...I think the latter is more attractive IMO.

Remember, just cause you are great at auditing, it doesn't automatically make you a great accountant.