Like the Paris Hilton of corporate finance, Sarbanes-Oxley is always, it seems, in the news. Sarbox Section 404 requires public companies to set up internal controls, document them and alert shareholders to any irregularities. Public companies need additional internal auditors on staff, and private companies are beginning to see the benefits of this increased transparency. And so, says Marilyn Bird, the Milwaukee-based regional manager for recruiting firm Robert Half International, 'It's all about internal audit right now and we don�t see an end to it.'
Salary.com says the median salary for auditing project leads is $88,875 in New York City and $85,471 in Los Angeles. 'If someone is coming out of the Big 4, he or she will have more opportunities and choices,' Bird says. 'With a Big 4 background, you'll see the biggest salaries or increases.'
According to the 2005 Robert Half and Accountemps Salary Guide, internal audit managers at large companies (sales of $250 million and above) will see a 12.5% increase in average starting salaries ($69,500 to $90,000) this year. The salaries of internal auditors with one to three years experience at mid-sized companies ($25 million to $250 million in sales) are projected to rise 16.8% ($42,250 to $50,000). Auditors who hold CPA certification or a graduate degree can add 10% to those figures.
Bird also sees a demand for financial analysts and cost accountants, with demand from the manufacturing sector heating up. Cost accountants with one year of experience at large companies, according to the Robert Half Salary Guide, will earn between $31,750 and $41,000 this year. Those with one to three years of experience will earn from $37,000 to $49,250. Senior accountants will earn $48,000 to $62,750 while managers can expect $60,500 to $81,500.
Other sectors consistently reporting more demand for accounting staff nationwide are health care, real estate and financial services.
Get the Proper Certification to Prosper
Unlike Paris Hilton, the perpetrators of corporate fraud like to keep a low profile. But a new study by the Association of Certified Fraud Examiners (ACFE, http://www.CFEnet.com), based in Austin, Texas, shows that professionals who hold the Certified Fraud Examiner (CFE) credential earn an average of a whopping 28% more than professionals in comparable positions who haven�t earned that designation.
Toby J.F. Bishop, president and CEO of the ACFE, says those results took the organization by surprise, but that they reflect 'the high value placed on anti-fraud skills in today�s world.'
The ACFE's 31,000 members include internal auditors, independent auditors, finance and accounting professionals, consultants, special-investigation unit members, security and loss prevention specialists and legal and IT personnel.
To be eligible for the CFE exam, Bishop says you need a BA or its equivalent and two years of relevant experience in a related field (internal or independent audit would qualify). The exam, which is available online and costs $250, is in four parts and takes 10� hours to complete. Considering the salary edge it confers, however, Bishop calls it 'a high return on investment.'
According to the ACFE survey (based on reporting from the 2003 tax year), an executive-level internal auditor with the credential earns $141,700 vs. $113,800 for someone without it. The average salaries nationwide for holders of the certification follow compared to those without follow:
- Independent audit: $87,200 vs. $72,500
- Internal audit: $88,900 vs. $72,467
- Consultant: $132,600 vs. $93,600
Survey respondents also say they anticipated 5% salary growth for calendar year 2004. Salaries in 2005 look only to be headed up from there. Whether you're looking for a new job at a higher salary or negotiating a raise at your existing job, RHI's Bird says, it's important to become informed from multiple sources about what's usual and customary at your level of skill and experience. 'Lots of salary information is available online,' she says. 'But beware of sites that just add cost of living to last year's numbers.'