After much ado over the increasing demands faced by internal auditors, it appears at least that Corporate America is willing to pay more for its increased demands on internal auditors.
The Institute of Internal Auditors says 92 percent of internal auditors received a pay raise in 2014, based on the findings of the group’s annual Audit Executive Center Internal Audit Compensation Study. The survey of 460 U.S. companies found 66 percent of companies paid increases to the entire audit staff compared with only 34 percent of organizations that paid increases to all non-audit employees.
At 92 percent, the share of internal auditors who reported getting raises is higher than the 88 percent in 2013, and higher than its been in five years, IIA says. The trend is a little different in Canada, however, where 85 percent of internal auditors reported getting a raise in 2014, down from 97 percent in 2013.
Among specific specialties in internal audit, the highest median salaries in the United States go to information technology specialists, the IIA says. The median salary in 2014 for general auditors was just under $60,000, but for IT auditors the median was $74,500.
The survey results suggest internal audit’s scope of work is becoming more technical, IIA says, with companies performing fewer financial audits but more focus in other areas, especially in IT. Certainly, the increased focus in recent years on risk and away from the more narrow focus on internal controls has placed increased demands on the internal audit function, especially in leveraging technology.
Companies also reward auditors for advanced degrees and certifications, the IIA survey results suggest. Internal auditors who hold a master’s degree earn 12 percent more than those with a bachelor’s in the United States and 11 percent more in Canada. On average, internal auditors with one or more professional certifications earned 25 percent more than non-certified colleagues, the results show.
“The IIA’s annual compensation study offers key benchmarking information about salaries and important insight in terms of both internal audit’s value to organizations and which specializations are most in demand,” said Richard Chambers, IIA president and CEO, in a statement. “This level of information will be invaluable for chief audit executives and audit committees as they navigate through significant changes in expectations and demands being placed on internal audit.”