History and Government Requirement of Internal Auditors
The IIA (Institute of Internal Auditors) was established in 1941, establishing internal auditing as a profession. In 1950, Congress mandated that every government agency should incorporate internal audits in its system of internal controls. Internal auditing originated as an independent aspect of accounting in the mid-twentieth century. The Foreign Corrupt Practices Act of 1977 completely transformed the internal auditing business. The act prohibited firms from hiding cash or engaging in bribes. The act mandated companies to maintain proper internal control systems as well as comprehensive and precise financial records, which increased need for internal auditors. The first CIA exam was given in 1974, and as of 2021, there were over 178,000 CIAs.