When it comes to financial certifications, aspiring professionals are often faced with the dilemma of choosing between the Certified Financial Examiner (CFE) and Certified Internal Auditor (CIA) credentials. Both certifications are widely sought after and respected, but they are quite different in terms of their skillsets, focus, and career paths. The purpose of this blog post is to compare the two certifications and to provide an overall recommendation for which one to pursue, based on the reader’s goals and background.
It is important to note that the CFE and CIA certifications are complementary and both hold equal value in the financial industry. Those interested in pursuing both credentials may benefit from the applied knowledge and experience gained from each certification. For instance, a CFE credential holder may understand the complexities of financial reporting and auditing, as well as the importance of investigative procedures, while a CIA credential holder may understand the nuances of accounting and financial statement analysis. Ultimately, the decision of which certification to
What is a CIA certification?
A CIA certification is a prerequisite for becoming a certified internal auditor. One of the most popular and widely recognized certifications a professional can earn in the field is this one. The Institute of Internal Auditors (IIA), which instructs professionals on how to successfully conduct internal audits for organizations, institutions, businesses, and governmental agencies, offers this certification. An internal auditor’s main job is to examine the financial records of an organization to look for flaws. They can do this effectively by adhering to a code of ethics.
What is a CFE certification?
A professional accountant, financial investigator, auditor, or someone in a related field can obtain a CFE certification to become a certified fraud examiner. The Association of Certified Fraud Examiners offers this certification. By receiving this certification, you pledge to reduce online threats and fraud against both businesses and people. You can anticipate learning the skills and techniques required for spotting fraud and stopping it from causing any significant harm by taking part in a CFE program. This certification becomes much more pertinent as financial crime tactics develop and change over time.
CFE vs. CIA certification
The following are some key distinctions between a CFE and CIA certification:
Work experience
A candidate requires significantly more work experience than someone seeking the CFE certification in order to be eligible to sit for the certified internal auditor exam. The CIA qualification typically requires five to seven years of professional experience in internal auditing or a related field. However, if you have the academic credentials to make up for it, some institutions might accept two years. The general requirement for someone pursuing the Certified Fraud Examiner certification is 24 months. Depending on the complexity and sensitive nature of the work, some employers might demand three or four years.
Academic achievements
The academic requirements for both certifications are nearly identical. The Institute of Internal Auditors requires applicants to hold at least a bachelor’s degree in order to be eligible for the CIA certification. Any subject or major is acceptable, but for the best preparation of your own experience and knowledge, a degree in auditing, accounting, compliance, quality assurance, or a related field of study is recommended. Decide to complete 40 hours of continuing education each year in order to keep your certification.
For those working toward their CFE certification, there is a little more flexibility. While candidates must have a bachelor’s degree, you might be able to take the exam with an equivalent or closely related degree. For this certification, a focus on fraud and auditing is ideal.
Exam process
Four tests must be passed to earn the CFE designation. To pass each test, a 74 is the minimum score. If any of the four exams are passed, you receive a conditional credit that is valid for 36 months following the exam date. You must therefore successfully complete the remaining tests within that time frame to avoid having to retake them all. Each of these tests has 125 questions and is taken at home. The four areas you have two and a half hours to prepare for are as follows:
You must take the exam at a designated testing location under a proctor’s supervision in order to receive the CIA designation. Internal auditing fundamentals, internal auditing practice, and internal auditing applications in the real world are the three sections of this exam. It might also be required to provide a letter of recommendation vouching for your moral character. The tests consist entirely of multiple-choice questions, with the first test having 125 questions and the following two having 100 questions each. You have been given 2.5 hours for the first test and 2 hours for the other tests. Other focus areas include:
Pricing
The price of the CIA exam varies depending on whether you are an IIA member ($990), a non-member ($1,150), or a student or professor ($585). Compared to the CIA exam, the CFE exam is significantly less expensive. The cost to take all four sections in order to receive the CFE designation is $450. The cost is only $350 if you purchase the CFE Exam Prep Course before taking the test.
Job opportunities
Auditors and accountants who want to become certified internal auditors are the main beneficiaries of the CIA certification. They can transition into a number of other professions with this qualification, including:
A person with the CFE certification likely works in a field where fraud-related activities are a major focus or is a qualified individual who aspires to become one. They might be employed in law, business, criminology, sociology, or loss prevention. There are additional roles that one can play, including the following:
Skills
The following are some of the abilities that a CFE practitioner would find most useful:
The following are some abilities that a CIA operator would find useful:
Is a CFE certification better than a CIA certification?
Because they serve different purposes, the CIA certification is not superior to the CFE certification. How well they line up with your career goals will determine how relevant they are. For instance, the CFE certification is probably more appropriate for you if you want to pursue a career that focuses primarily on fraud. The CIA certification is probably more helpful if you want employment opportunities that are more varied and internal auditing-focused. There is no hierarchy between either certification. Choose the certification that will most effectively help you achieve your goals after determining the types of positions you want to hold.
Please be aware that Indeed is not connected to any of the businesses or certifications mentioned in this article.
What is CIA | Is CIA worth it? Certified Internal Auditor | Nidhi Nagori
FAQ
Is the CFE respected?
The CFE designation is regarded as the pinnacle of excellence in the anti-fraud profession on a global scale. Candidates need to meet rigorous academic and professional requirements, exhibit strong moral character to the ACFE, and pass a testing process with 500 questions.
Is CFE internationally recognized?
The CFE credential is accepted as the gold standard for anti-fraud professionals throughout the world, so yes, it is recognized globally.
What is CIA CFE?
Chartered Financial Analyst (CFA), Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE), and
Is CIA or CPA better?
Exam Difficulty for CIA vs. CPA On the one hand, the CPA covers more material. On the other hand, the CIA goes much more in-depth. The average CIA exam pass rate in the last few years is around 41% The cumulative pass rates for the 2020 CPA exam for all 4 sections were between 52-65%
