Certified Internal Auditor (CIA)
Meaning and definition of Certified Internal Auditor
The Certified Internal Auditor (CIA) is a certification proffered to accountants conducting internal audits. It is, however, essential for the Certified Internal Auditors to congregate several requirements to achieve this designation, like passing a four-part exam that includes all issues, risks, and remedies pertaining to internal audits. The Certified Internal Auditor designation is conferred by the Institute of Internal Auditors and is the only such credential which is accepted internationally.
As explained by Investopedia, the initial three parts of the CIA exam focus on core global elements of internal audits. The fourth part includes auditing issues specific to the region in which the student is positioned. Even though the IIA proffers this credential, it is not required to be a member of the organization.
Job description of a Certified Internal Auditor
The certified internal auditors work in the accounting field and usually provides services to a single company at a time, considering all financial records in order besides helping to ensure state and federal compliance to accounting and tax laws. Moreover, a certified internal auditor can work for an auditing firm and come in to conduct annual audits, or might even be employed directly by a company.
Some other aspects forming the job duties of a certified internal auditor include:
- Accounting review: One part of a CIA’s job is reviewing the accounting data for the company thus identifying any improper accounting practices and errors in reporting or documentation.
- Compliance: Another duty of a CIA is monitoring compliance adherence inside the company.
- Reporting: a CIA is expected to give a comprehensive reporting of all their findings throughout the auditing process.
- Policy establishment: Yet another duty of the CIA is amending and establishing policies within the company thus ensuring smooth operating procedures and opportunity for company growth.
Qualifications of a Certified Internal AuditorThe post of a certified internal auditor generally requires a bachelor’s degree in finance or accounting as well as at least one year’s experience in the field of auditing or a related area, like bookkeeping or accounting. However, some posts also require a Certified Public Accountant or a Certified Internal Auditor designation, and a senior auditor role calls for a minimum of 5-7 years’ verifiable experience.
- Debt ratios
- Liquidity ratios
- Profitability ratios
- Asset management ratios
- Cash Flow Indicator Ratios
- Market value ratios
- Financial analysis
- Business Terms
- Financial education
- International Financial Reporting Standards (EU)
- IFRS Interpretations (EU)
- Financial software