Certified Bank Auditor – Definition

Cite this article as:"Certified Bank Auditor – Definition," in The Business Professor, updated August 1, 2019, last accessed October 20, 2020, https://thebusinessprofessor.com/lesson/certified-bank-auditor-definition/.

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Certified Bank Auditor (CBA) Definition

An accounting professional who specializes in reviewing the financial records of financial institutions is called a Certified Bank Auditor (CBA). The focus of a CBA is the regulation, evaluation and auditing of financial records to ensure absolute compliance to accounting rules. The Banking Administration Institute (BAI) awards the certificate to qualified specialists. For specialists and professionals to qualify for the certificate, they must have a degree with two years of experience as well as a masters degree with  a year of experience. Most CBAs work in the banks or other financial institutions, they ensure that financial records are accurate and compliant with accounting rules.

A Little More on What is a Certified Bank Auditor (CBA)

In most cases, Certifies Bank Auditors (CBAs) are bankers or accounting professionals who aim to maintain the status quo of professional auditing. Banks hire CBAs so that they can help in ensuring the completeness and accuracy of their financial records for auditing purposes. ALso, compliance to finance laws both at the federal and state level is crucial in financial reporting, this is one of the things CBAs ensure banks follow. CBAs are responsible for the evaluation of the records of the financial institution. Hence, if there is a breach or fraudulent transaction, the CBA in charge of the financial institution alerts  managers of the institution.

Requirements for Becoming a CBA

There are certain requirements that professionals must meet before they are awarded Certified Bank Auditor (CBA) by the BAnking Administration Institute (BAI). The major requirements are as follows;

  • He must comply with the standards of the Banking Administration Institute.
  • A bachelor’s degree in accounting.
  • A minimum of two years experience in professional banking and auditing.
  • Must have completed a four-part multiple choice exam in a space of less than three years.
  • Relevant work experience on budgeting, financing, auditing, spending and saving either with a government entity or private entity.

Earning a master’s degree is not compulsory but it is a plus.

Certified Bank Auditor Careers

Generally, Certified Bank Auditors (CBAs) can work in the banking industry, work with a CPA firm or as a self-employed. CBAs that pursue their careers start at the entry level. This means they work as subordinates under a supervisor who guides them on the job. This is for a specific time, it lasts till they garner the needed experience and can operate independently without any supervision.

CBAs must be well versed in accounting and auditing principles, bank law, finance laws and regulations, and other general principles applicable in their field. In order to sustain their professional designation, CBA professionals are required to undergo 30 hours of continuing professional education per year. They also pay an annual renewal fee.

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