Passing the Accredited Financial Examiner (AFE) exam is a critical step for financial professionals seeking to prove their competence in financial examining. The AFE exam is designed to test the knowledge and skills of individuals working in the field of financial examination. This exam is an essential requirement for financial examiners working in the public sector, including regulatory agencies and state insurance departments.
Exam Objectives:
The AFE exam is designed to test candidates’ knowledge of various financial examination concepts and practices. It covers a wide range of topics, including accounting and auditing principles, fraud examination, risk management, and regulatory compliance. The exam objectives include:
- Accounting Principles and Practices
- Auditing Principles and Practices
- Insurance Industry Overview
- Regulatory Compliance
- Risk Management
- Fraud Examination
- Financial Analysis and Statement Analysis
Candidates are expected to demonstrate a deep understanding of these topics and their application in real-world financial examination scenarios.
Who Should Take the Exam?
The AFE exam is intended for financial professionals, including insurance regulators, state examiners, and other financial industry practitioners seeking to demonstrate their competence in financial examination. It is designed for individuals who work or aspire to work in the field of financial examination.
The prerequisites for taking the AFE exam include at least two years of experience in the field of financial examination, including insurance examination or other financial industry examination experience. Candidates must also have completed a minimum of 60 college credits or have a bachelor's degree from an accredited institution.
Related Books:
There are several recommended books for candidates preparing for the AFE exam. These include:
- Accounting Principles and Practices for Insurance Companies by P. Bruce Wright
- Auditing Principles and Practices for Insurance Companies by P. Bruce Wright
- Fraud Examination by W. Steve Albrecht, Chad O. Albrecht, and Conan C. Albrecht
- Insurance Company Financial Management by Peter F. Macky
- Risk Management and Financial Institutions by John C. Hull
Exam Details:
The AFE exam is delivered by the Society of Financial Examiners (SOFE) and is available online or in-person. The exam fee for SOFE members is $495, while non-members are charged $595. The exam is a four-hour, open-book exam with 200 multiple-choice questions. The passing score for the AFE exam is 70%, and candidates are allowed to retake the exam up to three times within 24 months of their initial attempt.
Overall, passing the AFE exam requires extensive preparation and a deep understanding of financial examination concepts and practices. Candidates should take advantage of the available resources, including books, online courses, and study groups, to increase their chances of success on the exam.