Financial fraud examiner

Description

Financial fraud examiners undertake anti-fraud investigations including financial statement irregularities, securities fraud and market abuse detection. They manage fraud risk assessments and prepare forensic reports including the analysis and verification of evidence. Financial fraud examiners liaise with regulatory bodies.

The duties of a financial fraud examiner include, but are not limited to:

  • Conducting interviews with employees to determine whether they have knowledge of fraud activities, including bribery or embezzlement
  • Reviewing financial statements and other documents to detect irregularities in order to identify potential fraud cases
  • Interviewing potential suspects in an investigation, including questioning them about details surrounding the alleged fraud
  • Analyzing financial data to identify patterns of fraud that may be missed by untrained eyes
  • Interviewing witnesses and suspects in order to obtain information related to the case
  • Preparing detailed reports of findings and conclusions after an investigation is complete
  • Preparing case files for submission to magistrate or grand jury for indictment of suspects
  • Interviewing victims of fraud or theft to determine how much money was lost as a result of the crime
  • Working with insurance companies to investigate claims of fraud involving fire or natural disaster damage to property.

Working conditions

Financial fraud examiners work in a variety of settings, including corporate offices, banks, and government agencies. They typically work a standard 40-hour week, but they may have to work longer hours to complete investigations or to meet deadlines.

Some financial fraud examiners travel to different locations to conduct on-site investigations. The work can be stressful, and fraud examiners must be able to handle the pressure of working on complex cases. They must also be able to maintain the confidentiality of their work.

Other titles

The following job titles also refer to financial fraud examiner:

fraud examiner
fraud prevention analyst
financial fraud examiners
forensic accountant
fraud investigations manager
financial fraud investigator
fraud analyst
certified fraud examiner

Minimum qualifications

Financial fraud examiners typically need a bachelor’s degree to enter the occupation. A degree in business or a related field is common. Coursework should include accounting, finance, or related subjects.

Once hired, financial fraud examiners receive on-the-job training. Entry-level workers learn their job duties while supervised by senior examiners. The length of training varies but typically lasts more than 1 year.

After a few years of experience, financial fraud examiners may advance to a senior examiner position. Senior examiners handle more complex cases and may lead examination teams. Requirements for these positions vary, but employers often prefer candidates who have a master’s degree in either accounting or business administration or who are Certified Public Accountants (CPAs).

ISCO skill level

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

  • the nature of the work performed in an occupation in relation to the characteristic tasks and duties
  • the level of formal education required for competent performance of the tasks and duties involved and
  • the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Financial fraud examiner is a Skill level 4 occupation.

Financial fraud examiner career path

Similar occupations

These occupations, although different, require a lot of knowledge and skills similar to financial fraud examiner.

financial auditor
accounting analyst
bank treasurer
accountant
corporate treasurer

Essential knowledge and skills

Essential knowledge

This knowledge should be acquired through learning to fulfill the role of financial fraud examiner.

  • Banking activities: The broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, foreign exchange trading, commodity trading, trading in equities, futures and options trading.
  • Financial statements: The set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.
  • Fraud detection: The techniques used to identify fraudulous activities.
  • Forensic intelligence: The procedures and methodology of gathering and analysing forensic intelligence and data for investigative purposes.

Essential skills and competences

These skills are necessary for the role of financial fraud examiner.

  • Trace financial transactions: Observe, track and analyse financial transactions made in companies or in banks. Determine the validity of the transaction and check for suspicious or high-risk transactions in order to avoid mismanagement.
  • Perform forensic accounting: Perform audits and evaluations of financial information, accounts, financial products, and stewardship of companies. Exert financial investigations with different emphasis such as insurance claims, fraud, and anti-money laundering.
  • Prepare financial auditing reports: Compile information on audit findings of financial statements and financial management in order to prepare reports, point out improvement possibilities, and confirm governability.
  • Interpret law: Interpret the law during the investigation of a case in order to know the correct procedures in handling the case, the specific status of the case and the parties involved, the possible outcomes, and how to present the best arguments for the most favourable outcome.
  • Interpret financial statements: Read, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this information in the development of the department’s plans.
  • Manage corporate bank accounts: Have an overview of the bank accounts of the company, their different purposes, and manage them accordingly while keeping an eye on their balance, interest rates, and charges.
  • Conduct financial audits: Evaluate and monitor the financial health, the operations and financial movements expressed in the financial statements of the company. Revise the financial records to ensure stewardship and governability.
  • Identify accounting errors: Trace accounts, revise the accuracy of the records, and determine the faults in order to solve them.
  • Liaise with managers: Liaise with managers of other departments ensuring effective service and communication, i.e. sales, planning, purchasing, trading, distribution and technical.
  • Detect financial crime: Examine, investigate, and notice possible financial crimes such as money laundering or tax evasion observable in financial reports and accounts of companies.

Optional knowledge and skills

Optional knowledge

This knowledge is sometimes, but not always, required for the role of financial fraud examiner. However, mastering this knowledge allows you to have more opportunities for career development.

  • Financial products: The different types of instruments that apply to the management of cash flow that are available on the market, such as shares, bonds, options or funds.
  • International financial reporting standards: The set of accounting standards and rules aimed at companies listed in the stock exchange which are required to publish and disclose their financial statements.
  • Anti-dumping law: The policies and regulations that govern the activity of charging a lower price for goods in a foreign market than one charges for the same goods in a domestic market.
  • Criminal law: The legal rules, constitutions and regulations applicable for the punishment of offenders.
  • International law: The binding rules and regulations in the relations between states and nations, and legal systems dealing with countries rather than private citizens.
  • National generally accepted accounting principles: The accounting standard accepted in a region or country specifying the rules and procedures to disclose financial data.
  • Tax legislation: Tax legislation applicable to a specific area of specialisation, such as import tax, government tax, etc.
  • Financial jurisdiction: Financial rules and procedures applicable to a certain location, whose regulatory bodies decide on its jurisdiction
  • Public offering: The elements comprised in public offerings of companies in the stock market such as determining the initial public offering (IPO), the type of security, and the timing to launch it in the market.

Optional skills and competences

These skills and competences are sometimes, but not always, required for the role of financial fraud examiner. However, mastering these skills and competences allows you to have more opportunities for career development.

  • Prepare financial statements: Collect, entry, and prepare the set of financial records disclosing the financial position of a company at the end of a certain period or accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.
  • Ensure compliance with accounting conventions: Exercise accounting management and abidance by generally accepted accounting conventions such as recording transactions at the current price, quantifying goods, separating personal accounts of managers from those of the company, making effective the transfer of legal ownership of assets in its realisation time, and ensuring the principle of materiality.
  • Idenfify if a company is a going concern: Analyse financial statements, financial information and the outlook of the company in order to determine the going concern of the company.

ISCO group and title

2411 – Accountants


References
  1. Financial fraud examiner – ESCO
  2. Financial Examiners : Occupational Outlook Handbook – U.S. Bureau of Labor Statistics
  3. Fraud Examiner Job Description: Salary, Duties, & More – Climb the Ladder
Last updated on August 28, 2023