What is CIA Accreditation:
What is Certified Internal Auditor (CIA):
A certified Management Accountant is a certification for accountants conducting internal audits in organizations. Public and private companies, government agencies and non-profit organizations employ CPAs in their audit departments at all levels. They have to perform objective evaluations of risk management efforts, and governance processes. They are responsible to look for shortcomings in internal controls
The certified Internal Auditor (CIA) accreditation is awarded by the Institutes of Certified Internal Auditors (IIA) and is acceptable worldwide.
There are a lot of other certifications which are relevant to internal auditing but the most acknowledged certifications are Certified Public Accountant (CPA) and Certified Internal Auditor (CIA). Some internal audit positions require job candidates to have more than one certifications whereas some require more certifications as an additional preference. CIA designation has the status of most preeminent professional certification. Generally, professionals apply for this certification to achieve advancement in their auditing career position.
Importance of Certified Internal Auditor (CIA):
With significant training in auditing Certified Public Accountants (CPAs) can do the same job as a CIA, but experts with CIA title have more technical knowledge and focused skill-set.
The plus point CIA certification has on CPA is that it is recognized world-wide, whereas CPA is recognized only in the USA.
Why to become a CIA:
The Bureau of Labor Statistics anticipated a 10% rate of growth for auditors and accounting professions between 2016 and 2026. With the most demanding CIA credential, auditors are getting higher positions to fill the space in the robust job market. You have to be a CIA qualified because of the following gains.
CIA, Global Credential:
This credential is authorized and valued all over the world. There is an abundance of financial and accounting management certifications such as The Financial Risk Manager Designations and Certified Public Accountant, do not enjoy this benefit. FRMs and CPAs have to take further exams or have to go through the different credentialing process if they are not applying in the area of jurisdiction of the certifying body.
Boost Earning Potential:
After getting the credential the earning potential of CIAs have been increased by 51%. On average, they earn $38,000 more than their non-certified peers. This commensurate increase in salary is paid back by them in form of additional responsibility.
CIA designation demonstrates the individual’s commitment to the profession and field. The person who invests in an organization’s future by displaying perseverance and foresight is valued most and higher management efforts to employ and retain such workers.
Options for Professional Exposure:
Leadership and executive roles in accreditation bodies are positioned by certified professionals. Besides this, certification opens the doors of new professional arenas for credential holders, as it is a most desirable certification in all industries. Due to higher professional rank CIAs avail the chance to serve at policy-setting level.
Focused Skill Improvement:
The CIA exam gauges the test-taker’s knowledge and skills exclusively in the field of internal audit. This credential represents its holders as an experienced practitioner with thorough knowledge and solid grasp of a complex professional arena.
Code of Ethics:
Internal auditors are liable to code of ethics. In 2008, an issue came up and got popularity as Lehman Brothers scandal in which because of inadequate internal control balance sheet got fabricated. It was a case in which the accounting system was manipulated. These actions were considered biased, illegal, unethical, and unprofessional against the CIA code of ethics.
How to become a Certified Internal Auditor:
You can qualify for a CIA credential with a bachelor’s degree and two years of knowledgeable work experience or equivalent higher education with five years of qualifying work experience, preferably in relevant disciplines such as management, accounting, finance, computer information system or public administration. With other fields of study you can get entry-level jobs in firms dealing with your area of discipline.
To be hired as senior internal control editor it’s essential to have a bachelor’s degree with adequate professional experience in the domain of internal auditing. A higher degree like MBA can provide substantial advantage in the industry, specifically for executive positions in the audit department. Candidates having a masters degree can apply with one year of relevant work experience.
Candidates must have to submit required documents to get approval from Institute of Certified Internal Auditors (IIA) whatever is the educational status, there is no question on certification’s exam importance, all three parts must be passed within the certification eligibility period.
CIA exam includes essentials, practice and business knowledge relevant to internal auditing in three sections. Prior to exam test takers must have ample preparation time for each part.
IIA measures proficiency level of candidates for the first two parts and awareness level for the business knowledge section of the exam.
Candidates are allowed to apply and sit in the exam before acquiring relevant professional experience, but they will not be certified until the required experience is met within a certain program eligibility period. Aspirants are required to have experience in listed areas.
- Audit/ Assessment/ Disciplines
- External Audit
- Internal Audit
- Internal Control
- External Audit
- Quality Assurance
- Risk Management
Continuing Professional Education (CPE):
Once certification is complete CIA’s must have to focus on CPE requirements to improve their knowledge and skills and stay abreast of recent developments.
Increasing demand of CIAs:
The auditors hiring tends to increase globally. In recent years due to occurrence of various legislation changes about corporate taxes, financial reporting, and mergers and acquisitions, the demand for CIA to enhance accountability for organization and all stakeholders security, has been increased globally. Furthermore, retirement, employee turnover, and succession planning will create more job opportunities in the industry.
Future of CIAs:
To strengthen their internal controls, private and government agencies will be projected to hire auditors globally. As mentioned at the outset, financial improprieties and accounting scandals are quite genuine issues, and must be recognized by investors and analysts. In this regard for the foreseeable future the CIA’s role will remain important.