What Is a Certified Bank Auditor (CBA)
A Certified Bank Auditor (CBA) is an accounting specialist responsible for reviewing and evaluating a financial institution’s records to ensure accuracy, completeness, and compliance. Sometimes CBAs work for the bank for which they’re conducting audits; others may be hired as a third party to do so.
Understanding the Work of Certified Bank Auditors (CBA)
Certified Bank Auditors (CBAs) ensure that banks follow proper in-house procedures and regulations as well as comply with state and federal finance laws. If the audit reveals a security breach or instances of fraud, the next step is to meet with bank managers and executives to develop ways to fix and/or prevent further breaches or inconsistencies.
Audits are usually conducted on an annual basis but can be done intermittently if necessary. Sometimes the request for additional audits can come from within a bank or from a state or federal agency who might be suspicious of certain activities.
Requirements for Becoming a CBA
To become a CBA, individuals must meet education and experience requirements as well as maintain the standards of the Banking Administration Institute (BAI). Additionally, candidates must complete a four-part multiple-choice exam in less than three years and have at least two years of professional banking auditing experience.
This is in addition to the required bachelor’s degree in accounting. This provides education on the theory and practice behind the tracking of an organization’s assets. Undergraduate finance studies focus more on money management and the importance of budgeting, spending and saving for individuals, private businesses or governments.
Although not necessary, individuals can also earn a master’s degree. Some programs may even offer auditing tracks or electives to help tailor your degree specifically to your career goal. This degree in business or accounting can be completed in two years and would fulfill the requirement for working experience.
Once the proper degrees are obtained and CBAs look for work, graduates generally enter the workplace as entry-level and work under a supervisor until a specified time or until they show the ability to work independently.
Choices include working directly for a bank, for a CPA firm or as a self-employed contractor.
Applicants are tested on accounting, auditing principles, bank laws and regulations, and general business principles. Applicants should also be familiar with new industry developments. Every year, CBA professionals must complete 30 hours of continuing professional education and pay a renewal fee to continue using the designation.