The amount and complexity of information created and overseen by the auditors in terms of expenses, earnings, and taxes will also increase. The ongoing growth of global organizations is also demanding greater auditing expertise concerning international laws and trade in addition to international mergers and acquisitions.
Following Enron and the other financial scandals, Congress passed laws to curtail organizational accounting fraud. This legislation requires public companies to maintain established internal controls to guarantee the accuracy and reliability of financial reporting and analysis. Although not part of this legislation, private companies have to be just as concerned about financial crimes such as embezzlement, theft, and securities fraud. Computer and Internet technology is making such crimes easier to commit, and the number of them are rising.
FUTURE GROWTH
Over half of the 400 respondents of PricewaterhouseCoopers' second annual "State of the Internal Audit Profession" 2006 survey said Sarbanes-Oxley (SOX) lead to an increase in internal audit resources. Thirty five percent of those surveyed said they had expanded their personnel by 25% or more after the legislation was passed. However, simultaneously, 32% were actively trying to find candidates for auditor positions that have been vacant for over six months -- the same number as in 2005.
In today's operating environment, the demand for internal audit resources has increased much faster than internal audit capacity - a situation that raises serious concerns about the ability of internal audit groups to address higher level risks facing their organizations," said the Pricewaterhouse Cooper report.
The report noted the growing need for audit professionals who have the ability to "evaluate and test internal controls, audit complex areas, address enterprise-wide risk and governance issues, and provide insight into the adequacy of financial controls." The study also found that half of the organizations responding now use continuous auditing techniques, an increase from 35% in 2005. Another 31% plan to implement continuous auditing in the future. "This may be the beginning of a significant change in the way internal auditing has traditionally been done," said Dick Anderson, a partner in PricewaterhouseCoopers Advisory.
AVERAGE CURREN COMPENSATION OF INTERNAL AUDITORS
Salaries:
The United States Low Median High
Internal Auditor I $36,589 $42,166 $48,275
Requires bachelors degree
Little creativity required
0 -- 2 years of experience
Internal Auditor III $54,097 $63,007 $72,764
Requires bachelors degree
Wide degree of creativity and latitude years of experience
CERTIFICATION
Although the Internal Auditor Certification (CIA) given by the Institute of Internal Auditors (IIA) is not mandatory for internal auditors, a number of companies are looking for CIA candidates only. Betty McPhilimy, the 2004/05 chairman of the board for the (IIA) says in a 2004 interview with the CPA Journal, "the CIA is the premier global certification for internal auditing -- a crown jewel that we strenuously protect to make sure that it continues to reflect the appropriate priorities for internal auditors."
The IIA made considerable changes to its CIA program and curricula in May 2004, after undertaking an international research study that centered on the...
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