How to Be Financial Examiner - Job Description, Skills, and Interview Questions

May 26, 2023 / 5 Minutes Read / By Albert

How to Become

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The role of a financial examiner is a critical one as they are responsible for ensuring the financial soundness of organizations. Their job entails examining the financial records and accounts of businesses, organizations, and individuals in order to assess their compliance with applicable laws and regulations. This assessment helps protect the public from unethical or illegal financial activities, such as fraud and money laundering.

The consequences of failing to have a financial examiner on staff can be serious, including costly fines, reputational damage, and even criminal prosecution. Therefore, it is essential for organizations to have an experienced financial examiner on staff in order to properly safeguard their finances and protect the public from potential wrongdoing.

Steps How to Become

Obtain a bachelor's degree. Most financial examiner jobs require applicants to have at least a bachelor's degree in finance, accounting, economics, or a related field.
Become certified. Financial examiners may benefit from earning a professional certification, such as Certified Financial Examiner (CFE) or Chartered Financial Analyst (CFA).
Gain experience. Many financial examiner positions require a few years of experience in finance or accounting. Gain experience by working as an accountant, financial analyst, auditor, or in a similar role.
Pass the required exams. Some states require financial examiner candidates to pass specific exams, such as the Uniform Certified Public Accountant Examination or the Certified Internal Auditor Examination.
Apply for an open position. Once you have the necessary qualifications and experience, search for and apply to open financial examiner positions. Typically, employers will require applicants to submit a resume, cover letter, and other documents.

In order to stay ahead and capable in the field of financial examining, it is important to stay up-to-date with the latest financial regulations, technologies and trends. building strong relationships with other finance professionals and having a solid understanding of financial concepts can help financial examiners be more successful. Being proactive in seeking out professional development opportunities, such as attending educational seminars, networking events and conferences, can also help examiners stay ahead of the curve.

Finally, staying organized and managing time effectively can help financial examiners optimize their workflows and be able to complete tasks quickly. By staying informed and up-to-date, building relationships, taking advantage of professional development opportunities, and staying organized, financial examiners can stay ahead and capable in their field.

You may want to check Financial Planning Assistant, Financial Manager, and Senior Financial Institution Examiner for alternative.

Job Description

Conduct financial examinations of banks, trust companies, and other financial institutions, and examine financial records for compliance with applicable laws and regulations.
Analyze financial statements and reports, such as balance sheets, income statements, and statement of condition.
Evaluate the financial soundness of institutions by assessing the quality of loan portfolios, capital adequacy, liquidity, and sensitivity to market risk.
Review loan documents to ensure accuracy and compliance with applicable laws, regulations, and bank policy.
Identify problem areas and recommend corrective action.
Recommend changes and improvements in accounting systems, financial management procedures, and internal controls.
Prepare reports of examination findings and present them to management and regulatory agencies.
Monitor customer accounts to detect suspicious activity.
Perform investigations of alleged fraud or other illegal activities.
Maintain records of examinations and related documents.

Skills and Competencies to Have

Knowledge of banking and financial regulations.
Strong analytical and problem solving skills.
Ability to interpret and apply complex financial regulations.
Excellent attention to detail.
Good communication skills.
Computer proficiency in spreadsheet, accounting, and financial analysis software.
Strong organizational and time management skills.
Ability to synthesize large amounts of data into meaningful information.
Ability to work with minimal supervision.
Knowledge of financial auditing principles.

A Financial Examiner is a highly skilled professional who is responsible for ensuring the accuracy and legality of financial records. This is achieved through the careful examination of financial documents and statements, as well as the application of analytical and investigative techniques. To be successful in this role, it is essential to have excellent attention to detail, strong analytical skills, and a solid understanding of financial regulations.

Furthermore, it is important to have good communication and interpersonal skills, as well as the ability to accurately explain complex financial information to colleagues and clients. Financial Examiners play a vital role in protecting the integrity of financial markets, making it an important and rewarding profession.

Financial Data Engineer, Financial Trainer, and Financial Analyst Trainee are related jobs you may like.

Frequent Interview Questions

What experience do you have as a financial examiner?
Describe how you would conduct a financial analysis of a company.
How would you go about evaluating a company's financial statements?
What techniques do you use to detect fraud or policy violations within a financial institution?
How do you stay up-to-date on changes in financial regulations and laws?
How do you handle difficult conversations with clients when reporting on their financial practices?
How would you evaluate the performance of an investment portfolio?
What steps do you take to ensure accuracy when preparing financial reports?
What do you believe is the role of a financial examiner in ensuring compliance with laws and regulations?
What strategies do you use to identify potential risks associated with a company's finances?

Common Tools in Industry

Financial Statement Analysis Software. This software provides automated analysis of financial statements and other financial documents, allowing financial examiners to quickly identify discrepancies and issues in the data. (Eg: Oracle Hyperion Financial Management)
Financial Risk Management Software. This software helps financial examiners identify and manage financial risks, including credit, liquidity, capital, and market risks. (Eg: Moody's Analytics RiskCalc)
Data Mining Tools. These tools allow financial examiners to quickly analyze large amounts of data and uncover trends or patterns that can help with investigation and compliance. (Eg: IBM SPSS Modeler)
Document Management Software. This software helps financial examiners organize and store financial documents in a secure digital environment. (Eg: Adobe Acrobat Pro DC)
Investigative Research Software. This software helps financial examiners quickly locate and access relevant information for investigations. (Eg: LexisNexis Investigative Solutions)

Professional Organizations to Know

American Institute of Certified Public Accountants (AICPA)
Financial Industry Regulatory Authority (FINRA)
Institute of Internal Auditors (IIA)
Association of Certified Fraud Examiners (ACFE)
American Bankers Association (ABA)
National Association of State Boards of Accountancy (NASBA)
Government Finance Officers Association (GFOA)
International Association of Financial Examiners (IAFE)
Institute of Management Accountants (IMA)
Certified Financial Planner Board of Standards (CFPB)

We also have Financial Modeling Analyst, Financial Compliance Analyst, and Financial Research Analyst jobs reports.

Common Important Terms

Audit. An audit is an independent examination of a company's financial statements and records to verify accuracy and compliance with applicable laws and regulations.
Financial Statements. Financial statements are formal records used to track the financial performance of a business. These statements include the balance sheet, income statement, cash flow statement, and statement of changes in equity.
Financial Analysis. Financial analysis is the process of evaluating a company's financial performance and position through analysis of its financial statements, such as the balance sheet, income statement, and cash flow statement.
Risk Management. Risk management is the process of identifying, assessing, and controlling risks to ensure that an organizations objectives are achieved.
Compliance. Compliance is the process of ensuring that a company or organization adheres to applicable laws, regulations, and standards.
Regulatory Requirements. Regulatory requirements are laws, rules, and regulations that organizations must adhere to in order to operate legally in their respective jurisdiction.
Fraud Detection. Fraud detection is the process of identifying fraudulent activity or potential fraud in financial documents and transactions.

Frequently Asked Questions

What is a Financial Examiner?

A Financial Examiner is a professional who is responsible for examining and analyzing financial records to ensure compliance with financial regulations.

What qualifications are required for a Financial Examiner?

To become a Financial Examiner, typically a Bachelor's degree in Accounting or Finance is required. In addition, knowledge of financial regulations and laws is necessary.

What duties does a Financial Examiner perform?

The duties of a Financial Examiner include examining financial records, analyzing financial data, providing advice on compliance with financial regulations, and making recommendations for improvement.

What is the average salary of a Financial Examiner?

The average salary of a Financial Examiner can vary based on experience, location and industry. According to Glassdoor, the national average salary of a Financial Examiner is $68,000 per year.