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InterviewingasanAuditingTool
ByLindaM.Leinicke,JoyceA.Ostrosky,W.MaxRexroad,JamesR.Baker,andSarahBeckman
FEBRUARY2005Inresponsetotheincreasedemphasisonfraudprevention,deterrence,and
detectionconnectedwithrecentcorporatefailures,theAICPAissuedStatementonAuditingStandards
(SAS)99,ConsiderationofFraudinaFinancialStatementAudit.SAS99iseffectiveforperiods
beginningonorafterDecember15,2002,anditsignificantlychangeshowCPAsmustconsiderfraudin
theirauditsoffinancialstatements.Inlightofthisincreasedemphasisonuncoveringfraud,auditors
maywanttoconsiderthebenefitsofinterviewsasanaudittool.
Interviewsareausefulaudittooltogatherinformationaboutinternalcontrolsandfraudrisksforseveral
reasons.First,employeesinvolvedinthedaytodayoperationsofafunctionalareapossessthebest
knowledgeofthatarea.Theyareinanexcellentpositiontoidentifyweakinternalcontrolsandfraud
risks.Second,althoughmostemployeesarenotdirectlyinvolvedinfraud,theymayhaveknowledgeof
suspected,oractual,fraudsthatinterviewscanbringtolight.Third,employeesmaybereluctanttotell
managementaboutneededinternalcontrolsandsuspectedoractualfraud,evenwhenacompanyhasan
ethicshotline,acomplianceofficer,orotherreportingmechanisms.Wheninterviewed,however,
employeesareoftenwilling,evenrelieved,totalkabouttheseissues.
ObtainingtheInformationNeeded
AprimarydifferencebetweenSAS82andSAS99,whichsupersededit,isthatthelatterincludes
expandedrequirementsforinquiriesofmanagement.Makinginquiriesofmanagementisimportant
becauseseniormanagementisofteninthebestpositiontoperpetrateandconcealfraud.Inobtaining
informationnecessarytoidentifytheriskoffraudinafinancialstatementaudit,SAS99requires
auditorstoaskthefollowingquestions:
Doesmanagementcommunicateitsviewsonethicalbusinessbehaviortoitsemployees?
Doesmanagementhaveprogramsandinternalcontrolsdesignedtoprevent,deter,anddetect
fraud?
Doesmanagementdiscusswiththeauditcommitteeoftheboardofdirectorshowitsinternal
controlsystemservestoprevent,detect,anddeterfraud?
Doesmanagementunderstandthefraudrisksspecifictoitsbusiness?
Doesmanagementmonitorfraudrisksrelevanttospecificcomponentsordivisionswithinthe
entity?
Doesmanagementhaveanyknowledgeorsuspicionoffraud?
Ismanagementawareofanyallegationsoffraud?
Inadditiontomanagementinquiries,SAS99alsorequiresanauditortoinquireoftheauditcommittee
andofinternalauditpersonnelabouttheirviewsonthecompanysfraudrisks.Significantly,SAS99
mandatesthatotherindividualswithinthecompanyalsobequestionedabouttheriskoffraud.
Paragraph24ofSAS99states:
Theauditorshoulduseprofessionaljudgmenttodeterminethoseotherswithintheentityto
whominquiriesshouldbedirectedandtheextentofsuchinquiries.Inmakingthis
determination,theauditorshouldconsiderwhetherotherswithintheentitymaybeableto
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provideinformationthatwillbehelpfultotheauditorinidentifyingriskofmaterial
misstatementduetofraud.
SAS99suggeststhatauditorsinquireofoperatingpersonnelwithvaryinglevelsofauthority,ofin
houselegalcounsel,andofothersknowledgeableoffraudrisk.Becauseemployeesareoftenawareof
wherespecificfraudriskslie,auditorsshouldunderstandemployeesviewsontheriskoffraud.
Additionally,auditorsshouldlookfordiscrepanciesininformationreceivedfromvariousinterviewees.
Unusualsituationsorconditionsidentifiedthroughinterviewswithmanagementandotherscanbe
revealing.
TheMechanicsofaGoodInterview
Inquiriesofmanagementandothersintheformoffactfindinginterviewscanbehighlyeffectivein
obtainingtheinformationneededtoidentifytherisksofmaterialmisstatementduetofraud(SAS99).
Fortheseinterviewstobeuseful,effective,andefficient,thefollowingtechniquesarerecommended.
Training.Auditstaffmustbetrainedinhowtoconductaneffectivefactfindinginterview.Conducting
professionalinterviewsisalearnedskillonlythroughtrainingandpracticedoesonebecomeproficient
atit.Generally,athreetofivedaytrainingcoursewillbenecessarytogetanauditorstarted.Then,the
moreinterviewsauditorsconduct,orobservealongwithaskilledinterviewer,thebettertheywill
becomeatinterviewing.Acombinationofbothclassroomtrainingandonthejobtrainingisanother
excellentapproach.CPAsthatalreadypossessgoodinterpersonalandverbalcommunicationskillsare
idealcandidates.
TheAICPAsCPA2Biz(www.cpa2biz.com)offersinterviewingcoursessuchasFindingtheTruth:
EffectiveTechniquesforInterviewandCommunication.Additionalinterviewtrainingresources
includetheAssociationofCertifiedFraudExaminers(www.cfenet.com)andtheInstituteofInternal
Auditors(www.theiia.org).
Interviewingversusinterrogation.Understandingthedifferencebetweenaninterviewandan
interrogationisimportant.Thetypicalauditinterviewisaquestionandanswerformatteddiscussion
normallyconductedattheintervieweesworkstation.Thepurposeoftheinterviewistolearnnewfacts
ortoconfirmpreviouslyobtainedinformation.Aninterrogation,ortruthseekinginterview,isin
manywaystheopposite.Theprimarydifferenceisthestateofmindoftheinterviewee.Inaninterview,
theintervieweeisgenerallyawillingparticipantassistingtheinterviewerintheprocessofdetermining
thefacts.Aninterrogationoccursonlywhenasuspectedfraudsterhasbeenidentified.Theinterviewers
taskistopersuadetheindividualtoadmittoanactoromissionthathehasnointentionofdivulging.
Interviewingrequirestheabilitytoorganizethoughtsanddiscussionalongalogicalpath.Interrogation
requiresthoseskillscoupledwiththeabilitytopersuadeanindividualtosaysomethingthatruns
contrarytohissurvivalinstincts.
Conductingtheinterview.Theinterviewshouldhaveatonethatisformal,friendly,andnonthreatening
shouldfollowapredeterminedstructureandshouldresultinmeaningfulfactfinding.Aninterviewer
shouldprepareasetofquestionsandanintroductorystatementthatexplainsthepurposeofthe
interview.Thispreparationwillsetthetoneforaserious,purposeful,andeffectiveinterview.
Theinterviewershouldbematchedtotheinterviewee.Buildingarapportwithanintervieweeis
partiallyafunctionofwhointerviewswhom.Forexample,itismoredifficultforastaffauditortobuild
rapportandconnectwithanintimidatingCEOorCFOthanfortheengagementpartnertodoso.Butfor
theengagementpartnertoconducteveryinterviewissimplynotcosteffective,sopartnersor
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http://www.cpa2biz.com/
http://www.theiia.org/
experiencedauditmanagersmightinterviewmostseniormanagement.Managers,seniors,andstaff
accountantscanbematchedtootherinterviewees,asappropriate.
Theinterviewshouldalwaysbeconductedinprivate.Iftheintervieweesworkstationisnotsufficient,
thentheinterviewershoulduseameetingroom.Aninterviewismostsuccessfulwhenthesubjectis
comfortableandatease.Mostpeoplearemorecomfortableintheirownworkenvironmentandwhen
theycananswerquestionswithoutconcernthatacoworkermightbeeavesdropping.
Itisessentialintheearlypartoftheinterviewfortheauditortobuildarapportwiththeintervieweein
ordertoencourageanopendiscussion.Structuringquestionstoprogressfromthegeneraltothespecific
allowstheinterviewertofirstbuildarapport,andthenobservechangesinanintervieweesbehavior
thatmaysignalasuspiciousorsensitivetopicasthequestionsbecomemorefocused.Skilled
interviewersarealwayscognizantofindicatorsofdeceptionthatmaybedisplayedbyanyindividual
attemptingtomisleadtheinterviewer.Falsestatements,however,arenotalwaysindicatorsoffraud
theymaybecoveringupanindividualsperceivedpersonalorprofessionaldeficiencies.
Makingafalsestatementduringanauditinterviewisstressfulformostpeople.Whenafalsestatement
ismade,theintervieweereleasesthestressverbally,nonverbally,orinbothways.Indicatorsof
deceptionvaryfromindividualtoindividual.Theycanbeassubtleasachangeinvoicetoneoras
obviousasasuddenchangeincomplexion.Askilledinterviewermustbetrainedtoidentifythese
indicatorsandhaveathoroughunderstandingoftheirpotentialsignificance.
Becausethemainpurposeofthefactfindinginterviewistoseekinformation,openendedquestions
shouldbeemphasized.Questionsshouldbestructuredtoencouragetheintervieweetovolunteer
information.Forexample,Whatinternalcontrolproblemsdoyouhaveinyourdepartmentwithrespect
tocashreceipts?willlikelyprovidemoreinformationthantheclosedendedquestion,Arealldaily
cashreceiptsdepositedintact?Interviewersshouldbegoodlistenersandneverinterruptanopenended
response.Oneofthelastquestionsaskedineachinterviewshouldbeveryopenendedforexample,Is
thereanythingelseyouwouldliketotellmeregardingtheoperationsofyourdepartment?orHaveI
failedtodiscussanimportanttopicwithyou?JosephWells,chairmanandfounderoftheAssociation
ofCertifiedFraudExaminers,advisesthatthelastquestionshouldbewhethertheintervieweehas
participatedinanyfraudulentactivitiesagainstthecompany.Askingthisquestionprovides
documentationthatmayproveinvaluableifalawsuitinvolvingfinancialstatementfraudorasset
misappropriationoccurslater.
Tominimizelegalrisk,auditorsshouldgearthediscussionsolelytowardfactfindingquestionsor
statementsandawayfromaccusatoryquestionsorstatements.Forexample,asking,Haveyoustolen
anyinventoryfromthecompany?isacceptable,butasking,Youhavestoleninventoryinthepast
fromthecompany,haventyou?isnot,duetotheembeddedaccusation.
InterviewSubjects
SAS99,paragraph6,identifiesthetwotypesoffraudthatauditorsshouldbeawareofas
misstatementsarisingfromfraudulentfinancialreportingandmisstatementsarisingfrom
misappropriationofassets.Asaresult,inquiriesshouldbedirectedtowardindividualsconcernedwith
financialreportingaswellasthosewithdirectorindirectaccesstothecompanysassets.
TheCEOandtheCFOshouldbecarefullyinterviewedbyapartnerorexperiencedauditmanagerabout
theirknowledgeorsuspicionoffraud.Theseexecutiveshavethepowertooverrideinternalcontrols,
andthereforeareinapositiontoperpetrateandconcealfraud.Theiradministrativeassistantsmaybe
privytosensitiveinformationandmaysuspectorbeawareoffraudulentactivity,andshouldalsobe
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interviewed.Individualsmaybeawareoffraudulentactivitiesbutnotdisclosethemunlessspecifically
asked.
Fraudulentfinancialreporting.Toobtaininformationaboutmisstatementsarisingfromfraudulent
financialreporting,thefollowingpeoplecouldbeinterviewed:thecontrollerallemployeesinvolvedin
initiating,recording,orprocessingcomplexorunusualtransactionsandthevicepresidentofsales
andselectedsubordinates.
Financialstatementfraudisusuallyduetotheoverstatementofsalesrevenues.Thevicepresidentof
salesandthesalesstaffcouldbeunderdirectpressuretomisrepresentsalestransactionsforindividual
orcompanyrelatedpurposes.AccordingtoSAS99,paragraph41,theauditorshouldordinarily
presumethatthereisariskofmaterialmisstatementduetofraudrelatingtorevenuerecognition.
Misappropriationofassets.Wheninquiringaboutthepossibilityoffinancialstatementfrauddueto
misappropriationofassets,interviewsshouldbeconductedwithemployeesthathandlecash,whichis
frequentlymisappropriated.Employeesinvolvedininventorymanagementareknowledgeableabout
properinventorycontrolprocedures,andtheycouldbeawareofanyinappropriatehandlingof
inventory.Employeesinvolvedinpurchasingmaybeawareofkickbacks,fictitiousvendors,andsimilar
schemes.Employeesinvolvedinsimilarareaswithdirectorindirectaccesstosignificantcorporate
assetsshouldbeinterviewedaswell.
InterviewtheCEOfirst.Althoughseniormanagementmaybeinthebestpositiontoperpetratefraud,
employeesinlowerpositionsareoftenawareofsuchfraud.Auditorsshouldinterviewsenior
managementfirst,andthenfollowthecorporateladderdownward.Theauditcommitteemustbeaware
of,andapproveof,theuseofinterviewsasanaudittechnique.Inaddition,iftheCEOisinformedof
andendorsestheuseoffactfindinginterviews,hisapprovalcanbeconveyedtosubordinates,who
wouldthenbemorelikelytocooperate.AuditorsdonotwanttheCEOtobeblindsidedaboutinterviews
beingusedtoobtaininformationabouttheriskoffraud.Theengagementlettershouldindicatethatthe
auditteamwillusefactfindinginterviewstohelpidentifytheriskofmaterialmisstatementdueto
fraud.
DocumentingtheInterview
Duringaninterview,notetakingisafunctionofthestyleandmemoryoftheinterviewer.Aconsistent
patternofnotetakingeithertakingmanynotesortakingveryfewnotesshouldbemaintained
throughouttheinterview.Thegoalisnottodistracttheintervieweeandnottodisrupttheflowofthe
interview.Asuddenchangeinnotetakingstylemightaffecttheintervieweesanswers.Oncethe
interviewhasbeencompleted,however,theinterviewershouldimmediatelywriteamemodocumenting
theproceedings.ThismemosatisfiestherequirementinSAS99,paragraph83,thatanauditorshould
documenttheproceduresperformedtoobtaininformationnecessarytoidentifyandassesstherisksof
materialmisstatementduetofraud.Interviewersshouldkeeptheirhandwrittennotes,whichwill
corroboratetheformalmemoincaseofsubsequentlitigation.
UsingtheInterviewintheAudit
Onceallinterviewshavebeencompleted,theauditmanagershouldreadalloftheinterview
documentationmemos,lookingforthemesandpatterns.Iftheinterviewresultsindicatealackof
internalcontrols,overridesofinternalcontrols,potentialfraudulentactivities,orotherspecificrisksof
materialmisstatementduetofraud,theauditorshouldexpandproceduresintheidentifiedareas.In
addition,accordingtoSAS99,paragraph83,specificrisksofmaterialmisstatementduetofraudthat
wereidentifiedandadescriptionoftheauditorsresponsetothoserisksshouldbedocumented.
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ClickheretoseetheaccompanyingSidebar.
LindaM.Leinicke,PhD,CPA,andJoyceA.Ostrosky,PhD,CMA,CPA,areprofessorsofaccounting,
andW.MaxRexroad,PhD,CPA,isanemeritusprofessorofaccounting,allatIllinoisState
University,Normal,Ill.
JamesR.Baker,CFE,isinvestigatorfortheRoyceCityPoliceDepartment,RoyceCity,Texas.
SarahBeckmanisamastersofscienceinaccountancystudentatIllinoisStateUniversity,Normal,Ill.
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http://www.nysscpa.org/cpajournal/2005/205/images/p36.pdf
T
here was a time, seemingly not all that long ago, when the
array of professional credentials that seasoned accounting
professionals could pursue was relatively narrow; many chose
to work toward the CPA certification. Although this certifi-
cation provides its holder with the only licensed accounting des-
ignation in the United States, financial professionals can now
choose from among a wide variety of additional certification
opportunities and career paths in order to differentiate them-
selves within the marketplace.
Expertise in specific areassuch as business valuation, foren-
sic accounting, information systems, financial services, internal
auditing, and management accounting, among othershas become
an option for all and a necessity for many. Certification creden-
tials evidencing such types of expertise have proliferated, creat-
ing an ever-broadening array of certification possibilities.
Researching the key attributes of the myriad of professional orga-
nizations and the benefits of their respective certifications and cre-
dentials is a significant undertaking, for which most accounting
professionals lack the necessary time; thus, this discussion pro-
vides professionals with a guide to the more prominent U.S.-based
professional organizations (i.e., those with memberships of more
than 10,000) and the certifications they offer.
Navigating the Maze of Todays
Professional Credentials
R E S P O N S I B I L I T I E S & L E A D E R S H I P
p r o f e s s i o n a l d e v e l o p m e n t
JUNE 2013 / THE CPA JOURNAL62
By Douglas M. Boyle, Robyn Lawrence, and Daniel P. Mahoney
14
Such organizations include the AICPA,
the Institute of Internal Auditors (IIA), the
Certified Financial Planner (CFP) Board of
Standards Inc. and the Financial Planning
Standards Board (FSPB), the ISACA, the
Association of Certified Fraud Examiners
(ACFE), the Institute of Management
Accountants (IMA), and the Accreditation
Council for Accountancy and Taxation
(ACAT). A streamlined discussion of these
organizations (in descending order of mem-
bership size) and their respective certifica-
tions is followed by a discussion of essen-
tial implications and questions for profes-
sionals to consider, including potential ben-
efits and costs. (The Exhibit provides an
overview of the organizations discussed
below.)
AICPA
Founded in 1887 and consisting of near-
ly 400,000 members, the AICPA is the
longest established and arguably most
recognized among the U.S.-based account-
ing organizations. It publishes the Journal
of Accountancy; The Tax Adviser; CPA
Letter Daily; AICPA Weekly Update; CPA
Client Bulletin; six e-newsletters; and
numerous online guides, alerts, and spe-
cialty-area articles. Although the AICPA
is often associated specifically with the
Uniform CPA Examination, it actually
serves the accounting profession in a rather
broad capacity, as stated on its website:
The AICPA is the worlds largest asso-
ciation representing the accounting pro-
fession, with nearly 386,000 members
in 128 countries and a 125-year heritage
of serving the public interest. AICPA
members represent many areas of prac-
tice, including business and industry,
public practice, government, education
and consulting. The AICPA sets ethical
standards for the profession and U.S.
auditing standards for audits of private
companies, nonprofit organizations and
federal, state and local governments. It
develops and grades the Uniform CPA
Examination. (http://www.aicpa.org)
The AICPA offers five different spe-
cialty credentials to those who already hold
the CPA designation: Personal Financial
Specialist (PFS); Accredited in Business
Valuation (ABV); Certified Information
Technology Professional (CITP); Certified
in Financial Forensics (CFF); and, most
recently, Chartered Global Management
Accountant (CGMA). These credentials
offer qualified CPAs the opportunity to fur-
ther distinguish themselves and thus
advance their careers and enhance the value
of their practices.
PFS. This credential, established in 1987
for CPAs who have or seek expertise in
personal tax and financial planning, is pro-
vided to qualified CPAs who meet certain
experience requirements, earn 80 hours of
personal financial planning continuing pro-
fessional education (CPE) within the five-
year period preceding the PFS application
date, pass the six-and-one-halfhour PFS
Exam (or have passed either the Certified
Financial Planner [CFP] Exam or the
Chartered Financial Consultant [ChFC]
Exam), complete the PFS application, and
pay a $400 fee. The content of the PFS
exam includes professional responsibilities,
the personal financial planning process,
fundamentals of financial planning and
income tax planning, insurance planning,
financial independence (retirement plan-
ning), employee benefits, estate planning,
charitable planning, and other personal
financial planning issues.
ABV. Established in 1998 for CPAs
who have or seek expertise in the area of
valuation services, the ABV credential is
available to qualified CPAs who meet cer-
tain experience requirements, pass the six-
hour ABV Exam (or hold a current
Accredited Senior Appraiser [ASA] or
Accredited Member [AM] credential pro-
vided by the American Society of
Appraisers), complete the credential appli-
cation, and pay a $350 fee. The ABV
Exam includes content in the areas of qual-
itative and quantitative analysis, valuation
analysis, and related topics.
CITP. This credential was established in
2000 for CPAs who have or seek exper-
tise in the areas of business systems report-
ing, IT audit and attest services, internal
controls, fraud considerations, and risk
assessment. The credential is offered to
qualified CPAs who meet experience
requirements, complete the CITP applica-
tion, and pay a $400 application fee. In
addition, since July 25, 2012, applicants
are required to pass the four-hour CITP
Exam that covers risk assessment; fraud
considerations; internal control and IT gen-
eral controls; evaluation, testing, and report-
ing; and information management and busi-
ness intelligence.
CFF. This credential, established in
2008 for CPAs who have or seek exper-
tise in forensic accounting, is provided to
qualified CPAs who meet certain experi-
ence requirements, earn 75 hours of foren-
sic accountingrelated CPE within a 10-
year period (with a minimum of 50% with-
in a five-year period) preceding the date of
CFF application, pass a four-hour exam,
complete the CFF application, and pay a
$400 fee (for AICPA members). The
CFF Exam includes content related to pro-
fessional responsibilities and practice man-
agement, fundamental forensic knowledge,
and specialized forensic knowledge.
CGMA. This designation was established
in 2011 through a joint venture between the
AICPA and the London-based Chartered
Institute of Management Accountants
(CIMA). The CIMA, founded in 1919,
describes itself as the worlds leading and
largest professional body of management
accountants, with 183,000 members an stu-
dents operating in 168 countries, working
at the heart of business (http://www.
cimaglobal.com/About-us/Press-office/Press-
releases/2011/March-2011/cima-aicpa-jv/).
The CGMA designation is designed for
CPAs specializing in the area of manage-
ment accounting and members of the CIMA.
As described on the CGMA website:
The AICPA and CIMA have joined
together to form a joint venture which
powers a new designation for manage-
ment accountants, the Chartered Global
Management Accountant (CGMA). The
CGMA is designed to elevate manage-
ment accounting and further emphasise
its importance for businesses worldwide.
The CGMA recognises the unique role
played by management accountants in
businesses around the world who are
guiding critical business decisions and
driving strong business performance. It
sets a new standard for global recogni-
tion of management accounting by
building on the longstanding foundations
and thought leadership of the AICPA
and CIMA. United by global quality
standards for ethics and performance, the
CGMA maintains distinct credibility and
positioning among worldwide business
designations. Through a wide range of
resources and learning opportunities, the
designation further elevates CGMAs
management accounting expertise, skills,
ethical standards, commitment and
63JUNE 2013 / THE CPA JOURNAL
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JUNE 2013 / THE CPA JOURNAL64
dedication. (http://www.cgma.org/
AboutUs/Pages/default.aspx)
Current CIMA members are automati-
cally accepted as CGMAs. CPAs who are
not CIMA members are required to meet
certain financial and management account-
ing experience requirements, complete an
application, and pay a $150 designation fee.
No exam is currently required as part of
the acceptance process; however, begin-
ning in January 2015, successful comple-
tion of an exam will be required.
IIA
Established in 1941, the IIA has approx-
imately 176,000 members in 165 countries.
It publishes Internal Auditor, an online ver-
sion of the magazine (http://www.theiia.org/
intauditor/), and IIA Today. The IIA provides
five certification opportunities in various spe-
cialty areas of auditing. As described on its
website, the IIA is the considered
the premier organization for internal audit
professions:
The Institute of Internal Auditors (IIA) is
an international professional association
with global headquarters in Altamonte
Springs, Florida, USA. The IIA is the
internal audit profession’s global voice,
recognized authority, acknowledged lead-
er, chief advocate, and principal educa-
tor. Generally, members work in internal
auditing, risk management, governance,
internal control, information technology
audit, education, and security.
Globally, The IIA has more than 170,000
members. The IIA in North America com-
prises 159 chapters serving more than
70,000 members in the United States,
Canada, the Caribbean (Aruba, Bahamas,
Barbados, Cayman Islands, Curacao,
Jamaica, Puerto Rico, and Turks &
Caicos), Bermuda, Guyana, and Trinidad
& Tobago. Members enjoy benefits
offered by the North American Service
Center including local, national, and glob-
al professional networking; world-class
training; certification; standards and
guidance; research; executive develop-
ment; career opportunities; and more.
(https://na.theiia.org/about-us/Pages/About-
The-Institute-of-Internal-Auditors.aspx)
The certifications offered by the IIA
include the Certified Internal Auditor (CIA),
Certified Government Auditing Professional
(CGAP), Certified Financial Services Auditor
(CFSA), Certification in Control Self-
Assessment (CCSA), and Certification in
Risk Management Assurance (CRMA).
Although all of these certifications can add
value to a professionals career, the CIA des-
ignation is the one for which the IIA is best
known. Few would argue with the IIAs
assertion that the CIA is the only globally
accepted certification for internal auditors and
remains the standard by which individuals
demonstrate their competency and profes-
sionalism in the internal auditing field
(https://na.theiia.org/certification/CIA-
Certification/Pages/CIA-Certification.aspx)
CIA. In order to obtain the CIA certifi-
cation, a candidate must be a member of
the IIA, hold a four-year postsecondary
degree (or higher) from an accredited uni-
versity or its equivalent, exhibit high moral
and professional character as evidenced by
a character reference form, have at least 24
months of internal auditing experience
(holding a masters degree can substitute
for 12 of these months), and pass an
exam consisting of four two-hour-and-
twenty-fiveminute sections (internal audit
activitys role in governance, risk, and con-
trol; conducting the internal audit engage-
ment; business analysis and information
technology; and business management
skills). The application fee for an IIA mem-
ber is $100 and the exam part fee is $150.
Other IIA certifications. The CGAP,
CFSA, and CCSA specialty certifications
provide opportunities for accounting pro-
fessionals to demonstrate their knowledge
and expertise in specific content areas. These
certifications require that the candidate be a
member of the IIA and have a four-year
postsecondary degree (or its equivalent) or
a two-year degree and defined experience
(depending upon the designation). In addi-
tion, the candidate must complete a charac ter
reference form and pass a three-hour-and-
fifteenminute specialty exam for each cer-
tification. The CGAP Exam includes four
domains (i.e., topic areas): standards, gov-
ernance, and risk/control frameworks; gov-
ernment auditing practice; government
auditing skills and techniques; and govern-
ment auditing environment. The CSFA exam
likewise includes four domainsfinancial
services auditing, auditing financial services
products, auditing financial service process-
es, and the regulatory environmentand
allows the candidate to select from one of
three disciplines (banking, insurance, secu-
rities). The CCSA Exam includes six
domains: CSA fundamentals, CSA program
integration, elements of the CSA process,
business objectives and organizational per-
formance, risk identification and assessment,
and control theory and application.
The CRMA certification is the most recent
addition to The IIAs specialty offerings and
will have requirements similar to the other
certifications discussed. The administering
of CRMA is planned to commence in mid-
2013. The IIA previously allowed candidates
to apply for the CRMA based upon a point
system, whereby candidates could obtain cer-
tification depending upon the professional
experience and credentials that they pos-
sessed. This opportunity expired on
September 30, 2012, and new candidates are
subject to the exam procedures. The appli-
cation fee for all specialty certifications is
$100 for IIA members and the specialty
exam fee for the CGAP, CFSA, and CCSA
is $325, and it is $350 for the CRMA.
FPSB
The FPSB, formed in 2004, consists of
approximately 140,000 members in 24 ter-
ritories worldwide, approximately 64,000
of whom are located in the United States.
The FPSBs publications include FPSBs
Update and Its Your Turn. As noted on
its website, the FPSB works to promote
competency, ethics, and standards for
financial planners across the globe:
Financial Planning Standards Board Ltd.
(FPSB) is a nonprofit association that
manages, develops and operates certifi-
cation, education and related programs
for financial planning organizations so
that they may benefit the global com-
munity by establishing, upholding and
promoting worldwide professional
standards in financial planning.
FPSB works in conjunction with its
members to develop and promote rig-
orous international competency, ethics
and practice standards for CFP profes-
sionals in member territories to ensure
that consumers looking for qualified
financial planners understand and value
CFP certification. (http://www.fpsb.org/
fpsbincreasesrepresentation.html)
The FPSB offers the CFP credential
through agreements with nonprofit (or
equivalent) organizations that become
FPSB members. Following FPSB stan-
dards, these members administer the CFP
certification standards and can adapt the
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JUNE 2013 / THE CPA JOURNAL 65
certification process to address the regula-
tions, laws, and products of local areas. The
CFP Board established the eight major
domains of the CFP Exam: establishing
and defining the client-planner relationship,
gathering information necessary to fulfill
the engagement, analyzing and evaluating
the clients current financial status, devel-
oping recommendations, communicating
the recommendations, implementing the
recommendations, monitoring the recom-
mendations, and practicing within profes-
sional and regulatory standards.
The exam, which costs $595, may include
one comprehensive exam or a series of
exams; formats for the exam may vary
depending upon location and the preferences
of each FPSB member. In order to be qual-
ified to sit for the CFP Exam, a candidate
must be an FPSB member and demonstrate
completion of courses at the upper division
undergraduate or graduate (masters
degree) level (or its equivalent) in financial
planning. In addition, a condition of obtain-
ing initial certification is that the candidate
holds at least a bachelor’s degree from an
accredited institution. The CFP Board has
an experience requirement, defined as the
supervision, direct support, teaching or per-
sonal delivery of all or part of the personal
financial planning process to a client
(http://www.cfp.net/docs/default-document-
library/purpose_of_cfp_board.pdf?sfvrsn=2).
ISACA
Formed in 1969 and previously known
as the Information Systems Audit Control
Association, ISACA has a global member-
ship of more than 100,000, representing
more than 180 countries. Its publications
include ISACA Journal and JournalOnline,
which features online-only articles available
to ISACA members in the months that the
bimonthly ISACA Journal does not appear
in print. The ISACAs website describes the
organization as follows:
A nonprofit, independent membership
association, ISACA is a leading global
provider of knowledge, certifications,
community, advocacy and education on
information systems assurance, control
and security, enterprise governance of
IT, and IT-related risk and compliance.
Founded in 1969 as the EDP Auditors
Association, ISACA helps its members
and their employers ensure trust in, and
value from, information systems.
ISACA has more than 100,000 con-
stituents in more than 180 countries in
Asia, Latin America, Europe, Africa,
North America and Oceania. Its members
include internal and external auditors,
CEOs, CFOs, CIOs [chief information
officer], educators, information security
and control professionals, business man-
agers, students, and IT consultants.
(http://www.isaca.org/About-ISACA/
P r e s s – r o o m / P a g e s / I S A C A – F a c t –
Sheet.aspx)
The certifications offered by ISACA focus
on various systems-related specialties:
Certified Information Systems Auditor
(CISA), Certified Information Security
Manager (CISM), Certified in the
Governance of Enterprise IT (CGEIT), and
17
JUNE 2013 / THE CPA JOURNAL66
Key Information Certifications Offered
American Institute of Certified Public Accountants (AICPA) n Accredited in Business Valuation (ABV)
Website: http://www.aicpa.org n Certified in Financial Forensics (CFF)
Offices: New York, N.Y.; Durham, N.C.; Ewing, N.J.; and Washington, D.C. n Certified Information Technology Professional (CITP)
Established in: 1887 n Chartered Global Management Accountant (CGMA)
Membership: 377,000 members in 128 countries n Personal Financial Specialist (PFS)
Publications: Journal of Accountancy (printed monthly), The Tax Adviser (printed monthly), CPA Letter
Daily (free daily e-newsletter), AICPA Weekly Update (e-newsletter), CPA Client Bulletin (printed 10
times yearly), six Insider e-newsletters (CPA, career, corporate finance, corporate taxation, tax, and
wealth management). Monthly online guides: IFRS Report; InfoTech Update; Forensic & Valuation Reporter;
Financial Planning Digest; BusIndNews; and numerous other specialty-area publications, alerts, and guides.
Institute of Internal Auditors (IIA) n Certified Internal Auditor (CIA)
Website: http://www.theiia.org
