Internal auditing stands at the forefront of organizational risk management and governance, offering a career path that combines analytical expertise with strategic business insight. With the Bureau of Labor Statistics projecting steady growth in accounting and auditing professions through 2032, internal auditing presents compelling opportunities for those seeking a stable, well-compensated career that makes a tangible impact on business operations.
Whether you’re exploring this field as a college student, considering a career transition, or looking to advance your current auditing position, this comprehensive guide—developed with insights from certified internal auditors and industry professionals—provides the complete roadmap to launching and advancing your internal auditing career.
What Is Internal Auditing?
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. Unlike external auditors who primarily focus on financial statement accuracy for stakeholders, internal auditors work within organizations to evaluate and improve risk management, control, and governance processes across all business functions.
Internal auditors serve as the organization’s “third line of defense,” providing independent verification that risk management and control processes are functioning effectively. They examine financial records, operational procedures, compliance with regulations, and the efficiency of business processes to help organizations achieve their strategic objectives while maintaining integrity and accountability.
“Internal auditing is about being a trusted advisor. We don’t just find problems—we help solve them and prevent future issues through proactive risk assessment and process improvement.”
– Sarah Chen, CIA, Chief Audit Executive
What Internal Auditors Actually Do: A Day in the Life
Understanding the daily responsibilities of internal auditors helps clarify whether this career aligns with your interests and strengths. Internal auditors’ work varies significantly based on industry, organization size, and specialization area, but certain core activities remain consistent across roles.
Primary Responsibilities
Risk Assessment and Audit Planning (25% of time)
Internal auditors begin by understanding the organization’s objectives and identifying potential risks that could prevent the achievement of those goals. This involves reviewing business processes, analyzing data trends, and consulting with management to develop comprehensive audit plans that address the most critical risk areas.
Fieldwork and Testing (40% of time)
The largest portion of an internal auditor’s time involves conducting detailed examinations of business processes. This includes testing controls, analyzing transactions, interviewing employees, and documenting findings. Modern internal auditors increasingly use data analytics tools to examine entire populations of transactions rather than relying solely on sampling.
Report Writing and Communication (20% of time)
After completing fieldwork, internal auditors prepare detailed reports outlining their findings, risks identified, and recommendations for improvement. These reports must be clear, concise, and actionable, often requiring multiple drafts and stakeholder reviews before finalization.
Follow-up and Monitoring (15% of time)
Internal auditors track whether management has implemented recommended improvements and verify that changes effectively address identified risks. This ongoing monitoring ensures continuous improvement and accountability.
Industry-Specific Focus Areas
Education Requirements for Internal Auditors
The educational foundation for internal auditing careers typically begins with a bachelor’s degree, though the specific major and additional qualifications can significantly impact career trajectory and earning potential.
Undergraduate Education
Most internal auditor positions require at least a bachelor’s degree. While accounting degrees remain the most common educational background, employers increasingly value diverse educational backgrounds that bring different perspectives to the audit function.
Preferred Majors:
- Accounting (most common, provides technical foundation)
- Finance (strong analytical and valuation skills)
- Business Administration (broad business knowledge)
- Information Systems (crucial for IT audit roles)
- Economics (analytical and critical thinking skills)
Essential Coursework:
- Financial and Managerial Accounting
- Business Law and Ethics
- Statistics and Data Analysis
- Information Systems and Technology
- Risk Management
- Business Communications
Advanced Education
While not always required for entry-level positions, advanced degrees can accelerate career progression and open doors to senior leadership roles. Many internal auditors pursue graduate education after gaining initial work experience.
Master’s Degree Options:
- Master of Accountancy (MAcc): Provides deep technical accounting knowledge and often fulfills CPA education requirements
- MBA with Accounting/Finance Concentration: Develops strategic business acumen alongside technical skills
- Master of Science in Information Systems: Ideal for those interested in IT audit specialization
- Master of Science in Risk Management: An Emerging degree focused on enterprise risk management
Professional Certifications for Internal Auditors
Professional certifications demonstrate expertise, commitment to the profession, and often result in higher salaries and better job opportunities. The internal auditing profession offers several prestigious certifications, each with unique benefits and requirements.
Certification Comparison
Choosing the Right Certification
The CIA (Certified Internal Auditor) remains the gold standard for internal auditing professionals. Offered by the Institute of Internal Auditors (IIA), it’s globally recognized and often required for senior internal audit positions. The certification covers internal audit basics, practice, and business knowledge.
For those interested in IT audit, the CISA (Certified Information Systems Auditor) provides specialized expertise in information systems auditing, control, and security. As organizations increasingly rely on technology, CISA-certified professionals are in high demand.
The CPA (Certified Public Accountant) certification, while broader than internal auditing, provides valuable credibility and opens doors to various career paths. Many Chief Audit Executives hold both CIA and CPA certifications.
Internal Auditor Salary and Compensation
Internal auditing offers competitive compensation that reflects the profession’s importance in organizational governance and risk management. Salaries vary significantly based on location, experience, industry, and certifications held.
National Salary Overview
According to the Bureau of Labor Statistics, accountants and auditors earn competitive salaries across the United States. Internal auditors often command premium compensation due to their specialized skills and strategic role within organizations.
Salary by Experience Level
Top-Paying States for Internal Auditors
Metropolitan Areas with Highest Salaries
Industry Salary Variations
Internal auditor salaries also vary significantly by industry, with certain sectors offering premium compensation due to complexity, regulatory requirements, or profit margins:
- Financial Services: 15-25% above average (complex regulations, high risk)
- Technology: 10-20% above average (specialized skills, rapid growth)
- Healthcare: 5-15% above average (regulatory complexity)
- Manufacturing: At market average
- Government: 10-20% below average (but strong benefits and job security)
May 2024 Bureau of Labor Statistics salary data for Accountants and Auditors reflect state and national data, not school-specific information. Conditions in your area may vary. Data accessed June 2025.
Career Path and Advancement Opportunities
Internal auditing offers a well-defined career progression with opportunities to advance into senior leadership positions. Understanding the typical career path helps professionals set realistic goals and plan their development effectively.
Typical Career Progression
Years 0-2: Staff/Junior Internal Auditor
Entry-level auditors learn fundamental skills by participating in audit engagements under supervision. Responsibilities include performing basic testing, documenting work papers, and assisting with report preparation. This period focuses on developing technical skills and understanding organizational processes.
Years 3-5: Senior Internal Auditor
Senior auditors lead smaller audits independently and supervise junior staff. They develop audit programs, perform complex testing, and draft audit reports. This role requires strong analytical skills and the ability to communicate findings effectively to management.
Years 6-10: Audit Manager/Supervisor
Managers oversee multiple audit projects simultaneously, manage team members, and interact regularly with senior management. They’re responsible for audit planning, resource allocation, and ensuring quality standards. Many pursue CIA certification at this level.
Years 10+: Director/Chief Audit Executive
Senior leaders develop audit strategy, manage departmental budgets, and report to the board of directors’ audit committee. They focus on aligning audit activities with organizational strategy and maintaining stakeholder relationships.
Alternative Career Paths
Internal auditing experience provides excellent preparation for various career transitions:
- Chief Financial Officer (CFO): Many CFOs have internal audit backgrounds
- Chief Risk Officer: Natural progression for risk-focused auditors
- Compliance Officer: Leverages regulatory knowledge
- Management Consulting: Applies process improvement skills
- Forensic Accounting: Investigative skills transfer well
- Operational Management: Deep process knowledge enables transition
Skills Required for Success in Internal Auditing
Success in internal auditing requires a unique blend of technical competencies and soft skills. As the profession evolves, certain skills have become increasingly critical for career advancement.
Technical Skills
Soft Skills
Communication: Internal auditors must explain complex findings to diverse audiences, from operational staff to board members. Written and verbal communication skills are essential for creating clear reports and presenting recommendations effectively.
Critical Thinking: The ability to analyze information objectively, identify patterns, and draw logical conclusions forms the foundation of effective auditing. Auditors must question assumptions and think creatively about risks.
Professional Skepticism: Maintaining a questioning mindset while building positive relationships requires balance. Effective auditors verify information without creating adversarial relationships.
Business Acumen: Understanding how businesses operate, make money, and create value helps auditors provide relevant, practical recommendations that management will implement.
Technology and Tools in Modern Internal Auditing
Technology has transformed internal auditing from a largely manual, sample-based activity to a data-driven, continuous monitoring function. Proficiency with modern audit tools has become essential for career success.
Essential Audit Software
- Data Analytics Tools: ACL, IDEA, Tableau, Power BI for analyzing large datasets
- Audit Management Software: AuditBoard, Workiva, MetricStream for workflow management
- GRC Platforms: ServiceNow, SAP GRC, Oracle Risk Management
- Collaboration Tools: Microsoft Teams, Slack, SharePoint for remote auditing
Emerging Technologies
Artificial Intelligence and Machine Learning: AI helps identify unusual patterns and predict risks, enabling auditors to focus on high-risk areas. Understanding AI capabilities and limitations becomes crucial as organizations adopt these technologies.
Robotic Process Automation (RPA): RPA automates repetitive audit tasks, allowing auditors to focus on judgment-intensive activities. Knowledge of RPA tools provides a competitive advantage.
Blockchain: As organizations explore blockchain applications, auditors need a basic understanding of distributed ledger technology and its implications for controls and verification.
Continuous Auditing: Real-time monitoring of transactions and controls represents the future of internal auditing. Skills in designing and implementing continuous audit routines become increasingly valuable.
How to Get Your First Internal Auditing Job
Breaking into internal auditing requires strategic preparation and positioning. Whether you’re a recent graduate or career changer, following a structured approach increases your chances of landing that first position.
Building Relevant Experience
Internships: Most large organizations offer internal audit internship programs. These provide invaluable experience and often lead to full-time offers. Apply early, as competition is intense for prestigious programs.
Entry-Level Positions: Consider starting in related roles that build transferable skills:
- External audit (public accounting firms)
- Accounting analyst positions
- Risk management roles
- Compliance positions
- Financial analyst roles
Volunteer Opportunities: Nonprofit organizations often need help with internal controls and compliance. Volunteering provides practical experience while contributing to worthy causes.
Crafting Your Internal Audit Resume
Highlight relevant coursework, technical skills, and any audit-related experience. Emphasize analytical projects, risk assessments, or process improvement initiatives. Quantify achievements where possible (e.g., “Identified $50,000 in cost savings through process analysis”).
Interview Preparation
Internal audit interviews often include behavioral questions and case studies. Prepare examples demonstrating:
- Analytical problem-solving
- Attention to detail
- Professional skepticism
- Communication skills
- Ethical decision-making
Research the organization’s industry, recent news, and regulatory environment. Demonstrating business awareness impresses hiring managers.
Professional Development and Continuing Education
Internal auditing requires lifelong learning to maintain relevance and advance professionally. Successful auditors invest consistently in developing new skills and maintaining certifications.
Continuing Professional Education (CPE)
Most certifications require annual CPE hours:
- CIA: 40 hours annually, including 2 hours of ethics
- CPA: Requirements vary by state (typically 40-80 hours biennially)
- CISA: 20 hours annually, 120 hours per three-year period
Professional Organizations
Institute of Internal Auditors (IIA): The primary professional organization offering:
- Local chapter meetings and networking
- Professional certifications
- Industry publications and research
- Annual conferences and training
ISACA: Focuses on IT governance and offers:
- IT audit certifications
- Cybersecurity resources
- Digital transformation guidance
Association of Certified Fraud Examiners (ACFE): Specializes in fraud prevention and detection
Skill Development Priorities
Future Outlook for Internal Auditing
The internal auditing profession continues evolving in response to technological advancements, regulatory changes, and shifting business models. Understanding future trends helps professionals prepare for long-term career success.
Growth Projections
The Bureau of Labor Statistics projects steady growth for accountants and auditors through 2032, driven by:
- Increasing regulatory complexity
- Growing cybersecurity concerns
- Expansion of risk management functions
- Corporate governance emphasis
- Globalization of business operations
Evolving Role of Internal Audit
From Compliance to Advisory: Internal audit functions increasingly provide strategic advice beyond traditional compliance activities. Auditors who develop business partnering skills position themselves for greater impact and career advancement.
Real-Time Assurance: Continuous auditing and monitoring replace periodic reviews, requiring different skills and approaches. Auditors must adapt to providing ongoing assurance rather than point-in-time assessments.
Integrated Assurance: Organizations seek coordinated assurance across multiple risk and control functions. Internal auditors who understand enterprise risk management and can work across silos become more valuable.
Skills for the Future
Tomorrow’s successful internal auditors will combine traditional audit skills with:
- Data science capabilities
- Digital process understanding
- Agile audit methodologies
- Environmental, social, and governance (ESG) expertise
- Behavioral psychology insights
- Cross-cultural competence
Frequently Asked Questions About Internal Auditing Careers
Is internal auditing a good career choice?
Internal auditing offers excellent career prospects with strong job security, competitive salaries, and clear advancement paths. The profession provides exposure to all business areas, developing skills transferable to senior management positions. With growing emphasis on risk management and corporate governance, demand for skilled internal auditors remains strong.
Do I need an accounting degree to become an internal auditor?
While accounting degrees are common among internal auditors, they’re not mandatory. Employers value diverse educational backgrounds, including finance, business administration, information systems, and even liberal arts. The key is developing analytical skills, business acumen, and pursuing relevant certifications like the CIA.
How long does it take to become a certified internal auditor (CIA)?
Most candidates complete the CIA certification within 12-18 months, though you have up to four years to pass all three exam parts. The timeline depends on study dedication and work schedule. Plan for 100-150 hours of study per exam part. Many employers provide study support and exam fee reimbursement.
What’s the difference between internal and external auditing?
Internal auditors work for the organization they audit, focusing on risk management, operational efficiency, and internal controls across all business areas. External auditors are independent accountants who primarily verify financial statement accuracy for shareholders and regulators. Internal auditing offers more variety and direct impact on business operations.
Can internal auditors work remotely?
Remote work has become increasingly common in internal auditing, especially post-pandemic. Many organizations offer hybrid arrangements where auditors work remotely for planning, testing, and reporting phases, with periodic on-site visits for meetings and walkthroughs. Technology enables effective remote auditing, though some positions require more travel than others.
What industries hire the most internal auditors?
Financial services, healthcare, manufacturing, technology, and government employ the most internal auditors. However, any organization of sufficient size benefits from internal audit functions. Highly regulated industries like banking and healthcare often have larger audit departments and offer premium compensation.
How much travel is required in internal auditing?
Travel requirements vary significantly by employer and position. Local organizations may require minimal travel, while multinational corporations might require 25-50% travel to audit global locations. Discuss travel expectations during interviews and consider whether travel aligns with your lifestyle preferences.
What’s the typical work-life balance for internal auditors?
Internal auditing generally offers better work-life balance than public accounting, with standard 40-45 hour weeks outside of busy periods. Year-end and special projects may require additional hours. The predictable schedule and limited busy seasons make internal auditing attractive for professionals seeking stability.
Conclusion
Internal auditing represents a dynamic profession at the intersection of business strategy, risk management, and operational excellence. As organizations navigate increasing complexity, regulatory requirements, and technological disruption, skilled internal auditors become indispensable partners in achieving sustainable success.
The path to becoming an internal auditor offers multiple entry points and diverse advancement opportunities. Whether you’re drawn to the analytical challenges, the variety of business exposure, or the potential for senior leadership roles, internal auditing provides a rewarding career with meaningful impact.
Success in internal auditing requires continuous learning, adaptability, and commitment to professional development. By building strong technical foundations, developing essential soft skills, and staying current with emerging trends, you position yourself for a fulfilling career that evolves with the changing business landscape.
Take the first step today by researching accounting certifications that align with your career goals, exploring educational programs in your area, or connecting with internal audit professionals through the IIA’s local chapters. Your journey in internal auditing begins with a single step—make it count.
