Nowadays every organization is running to be on top of their industry and this ambition can only be completed if transparency, integrity, and other financial aspects are well maintained. The organization takes the services Certified Financial Services Auditor [CFSA], who is a professional who has the specialization in performing financial auditing within an organization. This position of CFSA is offered by the Institute of Internal Auditors which is a world-known association for internal auditors.
Let’s take a look into the qualifications, roles and responsibilities of a CFSA along with its importance in the industry.
Role
- Management of the Risk
The CFSA identifies the risks that are linked to the financial aspiration or operation of the organization. They assess the impact of these risks and make a plan to mitigate them.
- Internal Auditing
Internal auditing is a big part of any organization so the auditor performs the internal auditing for assessing the risks, for checking the impact of the internal controls, and for overall compliance with the related laws.
- Compliance
An organization must adhere to the regulatory requirements, industry regulations, or relevant laws. Therefore the CFSA makes sure that the organization is aligning with all these and that any type of financial transaction is in relevance with the industry standards and norms.
- Assurance of the Quality
The CFSA looks out for the accuracy of the financial reporting by checking the financial statements and analyzing the practices of accountancy.
Responsibilities
- Risk Mitigation
The CFSA mitigates or even removes the risks that are associated with the financial operation of the organization before they can cause any major harm to the reputation of the organization.
- Improvisation
The auditor is responsible for providing advice or suggestions for bringing better financial practices or compliance practices within an organization so that all the operations can run smoothly without any hitch.
- Planning of the Audit
Developing the audit planning after assessing the documents and financial transactions of the organization. This audit is based on the objectives, requirements, and control environment of the organization.
- Report
The auditor reports all the findings and recommendations to the management after completing the auditing. These reports include the areas where the organization is excelling and the areas where the organization is lacking. It also includes suggestions for and opportunities for the betterment.
Qualification
The CFSA as mentioned above is provided by the Institute of Internal Auditors specifically for those auditors who want to specialize in the financial services industry.
To be competent to have this certificate the auditor needs a bachelor’s degree and two years of experience as an internal auditor or anything related to it. There is also an exam that the candidates need to pass if they want to have the CFSA certificate and this exam includes various topics that are related to financial services such as risk management, regulatory environment, governance and control framework, and auditing of financial services.
It is also important for the auditors to engage in any continuous professional development or follow the IIA’s professional education requirements if they want to maintain this CFSA designation.
The CFSA professionals are required or expected to follow the rules and ethics of the IIA which also makes them aware of the standards, rules and processes of internal auditing. These ethics include but are not limited to integrity, authenticity, confidentiality, and transparency.
Advantages of CFSA
This certificate also gives a lot of recognition in the industry because it is globally accepted and shows you as a significant auditor in the finance industry. It also helps the auditor to achieve advancement in their career and gives them a chance to join high-level jobs within the reputed organizations. The auditors are also keen to make a wide range of networks within the community of IIM and can prove themselves as an exceptional expert in audit financial services.
Conclusion
The CFSA designation is an important thing to hold for an auditor who sees his/her future in the internal auditing of financial services organizations. It is not just a certificate but a testament to that auditor’s commitment towards his/her profession and also showcases the skills and knowledge as well. The individuals who want to achieve this certificate need to have the required qualification, and work experience and have passed the exam of the CFSA.
