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February 1, 2023

Compensation Watch: Internal Auditors

Good news for the internal auditors out there — a study by the IIA found that more of you are getting raises; the bad news is they also found that everyone's share is slightly smaller:

The number of U.S. organizations awarding raises to their entire internal audit staff increased from 60 percent in 2011 to 64 percent in 2012. In Canada, 83 percent of participating organizations gave raises to all their internal auditors in 2012 — a five-year high for the country. However, when compared to 2011, the magnitude of the raises has decreased, with fewer internal auditors having received a salary increase greater than 3.9 percent.

The fact that over one-third of companies survey don't give their internal audit staff raises is a little disconcerting, but we're not here to dwell on the negative.

For those in IA who are being shown the money, how can you best mitigate the wealth being spread too thin? Forget financial and operational IA and get yourself some skills:

The study results found that internal auditors who specialize in IT; fraud and forensics; or environmental, health and safety audits are earning higher salaries than those who perform financial and operational audits or engagements pertaining to an organization’s compliance and regulatory activities. This finding underscores the importance of specialty skills in determining compensation.

Turns out, more companies have discovered that these in-house auditors are extremely helpful with compliance and whatnot so a little monetary recognition seemed to be in order. So that's nice.

Don't spend it all in one place, IA people.

[Accounting Today]

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