What Every Bank Should Know About Integrating CFEs into Internal Audit Teams

CFE Certification in Internal Auditing

In the banking sector, the stakes of financial loss, reputational integrity, maintaining regulatory compliance, and warding off cybercriminal activities are extremely high due to the nature of the industry. Banks are particularly vulnerable to evolving financial fraud and misconduct. This can be highlighted from the statistics that financial firms and the banking industry face 40% higher cyber crime remediation costs than the overall average of $13 million.

It is this growing need to identify and mitigate the mushrooming digital crime in the banking sector, and its risk to the national economy that certified internal auditors should be integrated into internal audit teams. CFEs earn specialized skills during their certification course and exclusive ACFE networking events. These skills translate to an expertise in identifying, preventing, and investigating the evolving nature of threats that loom in the banking sector. Thus, when a CFE is integrated into the internal audit team, it brings significant advantages in detecting fraud and designing a strategic framework to prevent potential risks.Read more.

The need for CFEs for internal audits in the banking sector

• A CFE-certified expert is proficient in data analysis, assessing fraudulent financial transactions, investigating legal ambiguities, and providing anti-fraud guidance. These skills when amalgamated with internal auditing can help analyze complex financial transactions, and fraudulent schemes to uncover irregularities in data that may lead to fraud.
• Certified fraud examiners are trained to prepare for the worst-case situation by developing a contingency plan and assembling a professional response team to handle fraudulent cases. The response team tests the network and system for flaws before a hacker does, runs simulated drills on a regular basis, and strengthens its defenses against both internal and external threats. This brings in an additional benefit for a CFE who works in the internal auditing team.
• A CFE-certified expert working in the internal auditing team is better suited to conducting risk assessments that identify significant and minor weaknesses in the banking sector. These include developing plans and implementing best practices and cutting-edge solutions to improve the overall security posture of the financial sector.
• Certified fraud examiners are adept at integrating a variety of cutting-edge techniques and technology while comprehending their consequences for fraud prevention. Their assistance for the banking industry’s security posture through the implementation of cutting-edge technologies improves fraud detection capabilities.
• Certified fraud examiners working as part of the internal auditing team ensure that baking security meets applicable legislation and requirements. They also assist the banking sector in developing and implementing the most effective strategies to reduce legal implications and financial loss.
• Certified fraud examiners understand the importance of constant monitoring of banking security processes and implementing methods that may effectively address the increasing risks in the banking fraud landscape. Hence, CFEs when integrated into the internal auditing team can prove to be a significant addition to ensure a robust security posture for the integrity of the banking sector.