Most professionals would agree that determining the earning potential in a career path is an important consideration before pursuing it.
In this post, you'll get a clear picture of the salary range you can expect as an internal auditor, from entry-level wages to senior management compensation.
We'll explore typical internal auditor qualifications, average pay at different experience levels, factors impacting income such as location and industry, career growth opportunities, and more.
Introduction to Internal Auditing Salaries
Internal auditing is an important role focused on assessing risk, ensuring compliance with policies and procedures, and providing assurance around financial data accuracy. As such, strong compensation is offered to attract top talent.
Defining the Role of an Internal Auditor
An internal auditor is responsible for:
- Evaluating company processes to identify inefficiencies, risks, or non-compliance issues
- Assessing financial records and reporting for accuracy and adherence to regulations
- Developing audit plans and executing audits across the organization
- Reporting on audit findings and recommending changes to enhance profitability and efficiency
It's a complex role requiring attention to detail, critical thinking, and strong communication skills.
Typical Internal Auditor Qualifications
Most internal auditor jobs require:
- A bachelor's degree in accounting, finance, or a related field
- Certifications like the Certified Internal Auditor (CIA) or CPA
- Audit experience and knowledge of regulations like SOX
Ongoing training is also essential to stay current with regulations and best practices.
With advanced qualifications and expertise, an internal auditor can progress to higher positions and earnings over their career.
Average Internal Auditor Salaries
Internal auditors play a critical role in organizations by assessing risk, evaluating controls, and promoting effective and efficient operations. As such, strong compensation is provided to attract and retain top talent in these positions. Here is an overview of average salaries for internal auditors based on experience and credentials.
Entry-Level Internal Auditor Salaries
Those just starting out as internal auditors earn an average salary between $45,000 to $55,000. Entry-level refers to auditors with less than 1 year of experience.
With a Certified Internal Auditor (CIA) certification, entry-level salaries typically range from $48,000 to $58,000. The CIA credential demonstrates expertise in internal auditing and boosts earning potential.
Mid-Level Internal Auditor Salaries
Internal auditors with 3-5 years of experience average between $55,000 and $72,000 in salary. At the mid-level, auditors have a strong understanding of audit methodology and skills to effectively evaluate risk and controls.
With CIA certification, mid-level internal auditor salaries normally range from $60,000 to $78,000. The CIA provides credibility and indicates advanced knowledge, enhancing compensation.
In summary, internal auditor pay increases with experience and credentials like the CIA certification. Entry-level salaries range from $45,000 to $58,000, while mid-level auditors earn $55,000 to $78,000 on average. As auditors progress in their careers, their specialized skills and expertise drive higher salaries.
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Factors That Impact Internal Auditor Salaries
This section will cover key variables that affect how much an internal auditor earns, including location, industry, company size, and years of experience.
Geographic Location
Salaries for internal auditors tend to be highest in major metropolitan areas and key business centers where the cost of living is higher. For example, internal auditors working in New York City, San Francisco, and Washington D.C. typically earn some of the top wages for the profession nationwide. The increased salaries help offset the higher costs of living in these cities.
Specific examples include:
- The average salary for an internal auditor in New York City is $85,000 per year according to Glassdoor salary data. This is well above the national average.
- Internal auditors in San Francisco earn an average of $79,500 according to Indeed salary information.
- Salaries in mid-sized cities tend to be more moderate. For instance, internal auditors in Atlanta average approximately $68,000 per year based on Payscale data.
So location plays a major role, with larger business hubs commanding higher wages. But many other variables also impact potential earnings.
Industry
The industry an internal auditor works in can greatly influence pay. Industries involving high financial stakes like banking, investment management, and insurance tend to offer higher salaries to attract top talent.
For example:
- The average salary for an internal auditor in the banking industry is approximately $79,000 according to Glassdoor.
- Auditors working at tech firms earn about $76,500 on average based on PayScale data.
- Those employed in healthcare earn approximately $67,000 on average based on Salary.com information.
So auditors should research typical pay scales when considering industries and companies to work for to maximize earning potential. Specializing in higher paying fields can pay dividends over the course of a career.
Career Growth Prospects
Internal auditing offers strong career advancement opportunities for professionals looking to take on more responsibility and earn higher salaries over time. Here are some typical career growth paths in internal auditing:
Becoming a Senior Internal Auditor
With 6+ years of experience, internal auditors can progress to senior auditor roles where they take ownership of audit projects and lead teams. As a senior auditor, responsibilities include:
- Planning, budgeting, and leading complex audit projects
- Making key scoping decisions and leading fieldwork
- Supervising and mentoring junior auditors
- Presenting findings and recommendations to management
Senior internal auditors earn between $75,000 and $95,000 on average. The role allows auditors to advance their technical skills and build leadership capabilities.
Transitioning to Management
After 8-10 years, experienced internal auditors may move into management positions such as:
- Audit Manager/Director
- Head of Internal Audit
- Chief Audit Executive
These roles oversee teams of auditors and interact regularly with senior management and the Board. Key responsibilities include:
- Developing risk-based audit plans
- Leading multiple simultaneous audits
- Monitoring and reporting on control effectiveness
- Advising management on governance and risk management
Salaries for mid-level audit managers tend to range from $95,000 to $120,000 on average. Executive level positions can earn well over $150,000.
The internal audit function is central to good governance, so advancement opportunities are plentiful for professionals who demonstrate strong auditing skills, leadership qualities, and strategic business acumen.
Conclusion and Summary
In summary, internal auditor salaries typically range from $45,000 to over $100,000 annually, with the average falling around $75,000. Exact earnings depend on several key factors:
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Experience level: More seasoned internal auditors tend to earn higher salaries. Entry-level salaries start around $45,000, while managers and directors can make over $100,000.
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Credentials: Professional certifications like the CIA (Certified Internal Auditor) or CPA (Certified Public Accountant) can boost pay.
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Industry: Some industries like finance and technology tend to pay auditors more than nonprofit or government sectors.
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Location: Major metropolitan areas and their greater regions tend to offer the highest auditor salaries.
As internal auditors gain more experience, they can advance to senior auditor, audit manager, and eventually director of internal audit roles. These management positions open further opportunities to maximize earnings over one's career.
In summary, an internal auditor's pay depends most on their credentials, specialty, location, and level of expertise. While entry-level earnings may start below $50,000, six-figure incomes are common for management-level internal auditors.
