Deciphering compensation in a complex field like financial examination can be challenging.
This guide will clearly outline the earnings potential across key factors like location, industry, experience level, and more for financial examiners.
You'll discover national salary averages, state-by-state pay scales, impacts of specialized credentials, advancement opportunities, and an overview of the job growth outlook for this career.
Introduction to Financial Examiners
Financial examiners play a critical role in the financial sector by ensuring compliance with laws and regulations. They review financial documents and transactions to uncover errors, fraud, or noncompliance issues that could put organizations at risk.
As stewards of fiscal responsibility, financial examiners need strong analytical abilities and attention to detail. They often specialize in accounting, finance, banking, insurance, or real estate. Financial examiners typically work for regulatory agencies, banks, accounting firms, insurance companies, or government entities.
Defining the Role of a Financial Examiner
Financial examiners review financial statements, disclosure statements, and accounting records to ensure accuracy and compliance with relevant laws and regulations. Their primary duties include:
- Inspecting records of financial transactions for suspicious activity
- Assessing risk by analyzing financial statements and operations
- Documenting findings from examinations through memos and reports
- Reporting any noncompliance issues or fraudulent activities to management
Essentially, financial examiners serve as watchdogs who analyze financial data to make sure organizations are operating legally and ethically.
Key Job Responsibilities
On a daily basis, financial examiners carry out a range of critical tasks, such as:
- Reviewing loan documents, balance sheets, profit/loss statements and other financial records
- Conducting audits to ensure activities comply with standards and regulations
- Identifying discrepancies or issues and determining necessary corrective actions
- Preparing detailed documentation and reports on examination findings
- Monitoring continuing operations and advising management on improvements
Strong math, analytical, and communication skills are vital for succeeding as a financial examiner. They must pay sharp attention to details while reviewing complex financial documents.
Financial Examiner Salaries
Financial examiners analyze financial records and ensure compliance with laws and regulations. Their role is critical for maintaining the integrity of financial systems. This section will analyze financial examiner salary data to provide insight into earning potential.
National Salary Data and Averages
The average annual salary for a financial examiner in the United States is $83,710, according to the Bureau of Labor Statistics (BLS). This includes examiners across all experience levels.
Entry-level financial examiners with less than 1 year of experience can expect average starting salaries around $55,000. With 5-10 years of experience, average salaries typically range from $70,000 to $90,000. More seasoned examiners with over 15-20 years of experience average around $105,000 per year.
Compared to related roles, financial examiners earn higher average salaries than accountants and auditors, who average $77,250 and $68,150 respectively.
Salaries by State and Industry
The top paying states for financial examiners are New York ($122,010 avg.), California ($117,100 avg.), and Washington DC ($116,460 avg.). High salaries can also be found in states with major financial hubs like Illinois, Texas and Massachusetts.
By industry, the highest salaries are paid by federal executive branch government agencies, averaging $104,650 per year. The finance and insurance industries also compensate examiners well with average salaries over $100k.
Earning Potential and Salary Growth
The earning potential for financial examiners is quite strong over the course of a career. Achieving higher levels of certification and clearances allows examiners to qualify for more advanced roles leading to higher salaries.
For example, an entry level examiner may start around $55k, then achieve Certified Financial Examiner (CFE) certification after 2-3 years to boost salary to $75k. Later, obtaining additional Series licenses can provide salaries over $100k, especially in top paying industries and states.
The BLS projects above average job growth for financial examiners at +7% from 2020 to 2030, faster than the average across all occupations. Rising demand in the field contributes to competitive salaries and good salary growth potential over time.
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Career Advancement Prospects
Financial examiners have several options to advance their careers, gain specialized experience, and move into higher paying roles.
Gaining Specialized Experience
Financial examiners can focus on specific industries like banking, insurance, securities, real estate, or government programs. Developing expertise in one of these areas allows examiners to better analyze risks and issues unique to that industry. This specialized experience makes examiners more valuable and can lead to higher salaries.
For example, an examiner with 5 years of experience in bank auditing and risk management could command a much higher salary than one with general financial auditing skills. Specializing early in a career is key.
Pursuing Advanced Certifications
Certain certifications can also boost a financial examiner's salary potential:
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Certified Fraud Examiner (CFE): Fraud examiners earn median pay of $64,890 annually. The CFE certification shows skills in detecting fraud through examination of financial records.
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Certified Financial Examiner (CFE): This credential demonstrates competency in investigative accounting. Many government and regulatory agencies require the CFE for senior examiner roles.
Earning these advanced designations signals specialized skills and credibility that warrants higher compensation.
Moving Into Management Positions
With at least 5 years of experience, financial examiners can move into supervisory and management roles. Positions include:
- Financial Examiner Manager
- Fraud Investigation Director
- Regulatory Compliance Officer
Moving into executive positions with titles like "Chief Risk Officer" or "Director of Enforcement" is also possible later in one's career.
Gaining people management skills early on can help expedite this career progression. Examiners who can lead teams and projects have the best prospects for advancement into high paying leadership roles. Soft skills like communication, organization, and analytical thinking are equally important.
Pursuing a relevant graduate degree like a Masters of Science in Accounting or Juris Doctor in Law can also help qualify for senior level positions in the field.
Overall, financial examiners have excellent advancement potential into domain expert or management positions yielding salaries averaging well over $100,000 annually.
Job Outlook for Financial Examiners
Projected Job Growth and Openings
The Bureau of Labor Statistics projects steady job growth for financial examiners over the next decade. Employment of financial examiners is expected to grow 6% from 2020 to 2030, adding around 5,100 new jobs. This aligns with average projected growth across all occupations.
Several factors contribute to ongoing demand for financial examiners:
- Increased regulation and oversight of financial institutions following the 2008 recession
- Globalization and integration of financial markets requiring more examiners with specializations
- Rising incidence of financial crimes like money laundering and securities fraud
Additionally, high turnover and retirements among the aging financial examiner workforce will drive job openings. Over the 2020-2030 period, nearly 11,000 openings for financial examiners are expected to arise from labor force exits.
So while projected numeric growth in positions may be moderate, healthy job opportunities for qualified financial examiners are anticipated due to replacement needs alone.
Drivers of Job Demand
The primary drivers spurring demand for financial examiners include:
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Regulatory changes: New regulations imposed on banks and other financial institutions after the 2008 financial crisis have increased the need for examiners to ensure compliance. Continued regulatory pressure is expected.
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Globalization trends: Cross-border integration of financial markets requires examiners with specialized knowledge to uncover complex risks. More multi-national expertise is needed.
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Financial crimes: Money laundering, securities fraud, and other illicit financial activities are rising. Additional examiners are required to detect wrongdoing and enforce laws. Cybersecurity threats also contribute to demand.
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Retirements: A significant portion of the financial examiner workforce is retiring over the next decade. Replacements must be hired and trained to fill vacant roles.
Together, these factors signal steady job opportunities in financial examination over the 2022-2032 period. Candidates with accounting, finance, legal, and regulatory compliance backgrounds are likely to be in highest demand to fill open positions.
Conclusion and Key Takeaways
Financial examiners play a critical role in ensuring compliance, minimizing risk, and promoting the overall health and stability of the financial sector. As such, their specialized skills and expertise command competitive salaries that continue to rise.
Recap of Salary Ranges
- The average salary for a financial examiner is $94,170 per year, with top earners making over $160,000 annually.
- Entry-level positions start around $55,000, while senior examiners can make up to $200,000.
- Significant earning potential exists over the course of a career, especially as examiners gain specialized certifications and clearances.
Outlook for Job Growth
- The job growth outlook for financial examiners is strong at 7% from 2020 to 2030. This is faster than average compared to other occupations.
- Increased regulations, globalization, and complex investment products will drive demand for more examiners to oversee financial institutions and ensure compliance with laws and regulations.
In summary, financial examiner roles offer competitive pay today and good prospects for salary growth in the future. The specialized skills these professionals possess will be in high demand in the coming years.
