[SAO247]

Hello everyone. I have some questions to ask regarding a transition from corporate accounting to Internal Audit. Throughout my studies with the CPA exam, and that of my undergraduate and graduate degree work, I have developed a passion for audit. I had attempted to get a position within a public accounting firm in an audit role, but I was never able to find one. I have been in corporate accounting for about 1.5 + years now, and I want to transition into an Internal Audit role. I am hoping at the time of this post, that I will have passed the BEC section of the exam, rounding out my work with the CPA exam. I have no liscence credit yet, as I have not be supervised by an active liscenced CPA just yet. I am interested in taking and completing the Certified Internal Audit exams.

My question is, would I be able to find a position within Internal Audit somewhere? Is a transition possible with my work in corporate accounting? I would like some information since I am very passionate about the audit field, and Internal Audit in particular. Any advice would help!

AUD 81 (Jul 2015) FAR 64 (May 2015), 88 (November 2015) REG 84 (January 2016) BEC TBA (April 2016)

[Mayo]

“My question is, would I be able to find a position within Internal Audit somewhere?”

Your best bet is a lateral transfer within your company. Other than that, I'd suggest getting your CIA and networking heavily.

Which brings me to another question…why are you shooting for the CPA if internal audit is your goal? Seems kind of backwards to me.

“Is a transition possible with my work in corporate accounting?”

Yes. Network effectively, do a good job in your position, and pass the CIA exam.

“I would like some information since I am very passionate about the audit field, and Internal Audit in particular. Any advice would help!”

What kind of info do you need? I spent 8 months in internal audit and 3 years in external audit. Ask away.

Mayo, BBA, Macc

[SAO247]

Mayo

Thanks so much for your post. I am already in the process of researching how to start the CIA exam process, and to pass that exam. My question comes out of the fact that since I did not have the opportunity to work within external audit, (even thought I am currently looking very hard), and my current company is quite small, and does not have an internal audit department, whether I would be able to make a move to IA at some firm within my area. A question I have to this effect is how well my work and experience within corporate accounting would translate over into IA, and also to that effect, how effective CIA test passes, and a CPA certificate would be in allowing me to move into IA.

[Mayo]

“A question I have to this effect is how well my work and experience within corporate accounting would translate over into IA, and also to that effect, how effective CIA test passes, and a CPA certificate would be in allowing me to move into IA”

So…there's a few questions there.

First, how will your skills from corp accounting transfer to internal audit? Well……so the thing is that most auditors don't really know a whole lot about the things they are auditing. This is true for internal as well as external auditors. They will never have the same understanding of a process compared to the people performing that process, They THINK they do, but not really. This coming from someone who went from external audit to financial reporting. Once I was on the other side, I realized how complicated things can be. So your corp accounting background will help bridge that gap. So I would count that as a plus.

That being said, the first 3 years as an auditor (let's use external audit as an example because I think it's the best standard [sorry internal auditors, but being on both sides I can say with confidence that external audit is way sharper and knowledgeable than 95% of most internal audit teams]).

So year one: You learn to interact with clients, ask questions, follow up, do a decent job with task management, and how to document your work appropriately. When you begin you are expected to know nothing.

Year 2: A lot of the same with year one, but you are expected to know more about audit methodology, why you are doing the things you are doing, and to take on more complex projects.

Year 3 – Senior (except for PWC) – You are expected to do your own tasks, keep your team on task, answer questions from your staff as well as review their work, and be the overall QB of a project. Special topic projects might be thrown your way as well.

Anyhow….all this to say that being an awesome auditor takes a proactive attitude with great communication and project management skills.

I typed a lot but I'm not sure I did a good job of making you understand what it's like to be an auditor.

Mayo, BBA, Macc

[Rose]

@Mayo – I am also interested at internal audit positions. I have corporate accounting experience (7 years) what do you think of an accountant transitioning into an internal auditing role? Thanks

[Mayo]

“I have corporate accounting experience (7 years) what do you think of an accountant transitioning into an internal auditing role?”

I think it's a great opportunity to transition. Just keep in mind that you'll probably have to start as a Staff auditor for a year or so until they feel comfortable with your auditing knowledge. I will say that if your IA director/hiring manager is Big 4, it might be a bit harder as they tend to prefer Big 4 alumni first.

If the director/hiring manager is not ex big 4, then there's probably a better chance to get your foot in the door.

I think the key things are:

1. Pass your CIA exam. I'd say it can be just as important as the CPA exam. This is because the CIA goes into more depth on auditing methodology than the CPA does. So having that certificate is kind of like a stamp of approval that you have a basic understanding of the concepts you'll be working with. Mainly SOX 404, sampling, overall risk based approach, and materiality and evaluating it on an account or financial statement line item level. CPA is still good to show you have some good knowledge of GAAP and accounting in general. So try and do both to maximize your chances.

2. Network heavily. Can't stress this enough.Make sure people know who you are. Go to company events. Make friends, be likable, and be a good team member. A good reputation goes a long way.

Mayo, BBA, Macc

[Rose]

Thank you very much for the info, Mayo!

[Author]

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