When it comes to audit job interviews, preparedness is essential. If auditors want to land a job, they must know how to present themselves in front of hiring managers properly. If they want to get a job as an auditor, they need to know how to present themselves in front of potential employers properly. With each question, the interviewer tends to dive a little further into who you are, where you are weak, and what you can give; thinking laterally about your replies is just as important as providing them. When replying, it is your job to show your strength, professionalism, and honesty without portraying yourself in a poor light. So, in this article, we will be discussing the Audit Interview Questions and its sample answers for you.
Most Common Audit Interview Questions
- What drew you to become an auditor in the first place, and what do you enjoy most about it?
Through this broad starting question, the interviewer attempts to get to know you a little better and identify potential areas for follow-up inquiries. This is a question that will almost certainly be asked early in the interview. So, directly, honestly, and respond. Then, tell a narrative about how your enthusiasm for the profession will practically benefit the company.
Examples:
“I’ve always loved working with statistics and data in search of knowledge that may be used to attain a goal or make a decision,” says one example.
“I approach this in the same manner that a detective or forensic expert would, methodically discovering the facts. The effort typically results in invalidation of the original thesis or business assumption, which is quite satisfying. In addition, finding something new and unexpected, then finding out how to report (if required) and resolve it, provides a challenge that I also enjoy.”
- How might you describe the auditing process? Is it possible for you to walk me through a typical workflow?
Any potential auditors being interviewed for a job should be familiar with the auditing procedure, but this question might help them learn more about their style. You should be able to explain a simple audit to the interviewer in both technical and layman’s terms and walk them through the process from start to finish. The response to this question will assist them in determining a candidate’s fundamental industry expertise. What they will look for in a response:
- To a fine degree, you should have a working grasp of the auditing method.
- Ability to convey both technically and in layman’s terms
- Critical thinking demonstration
Example: “I get the required financial records, develop an audit plan, organize a meeting, travel to the site to do fieldwork, produce my report, and schedule an exit meeting.”
- Can you offer an example of a time when you wanted to illustrate a point about your audit with hard data?
The work or accuracy of an auditor may be called into doubt at times. Potential recruits should be able to clarify their responses to inquiries and back up their claims with proof. This question might reveal how the candidate copes under duress. What you should look for in a response:
- Ability to swiftly recall or locate particular info
- Excellent organizing abilities
- Ability to convey facts in simple words
Example: “When a client challenges a charge, I already have the data classified and double-checked for correctness. I can immediately refer to it and explain its relevance.”
- How would you approach delivering difficult-to-hear comments to a client?
Auditors must be precise with their figures, but they must also communicate and interact with others to provide direction. When it comes to handling potential conflicts, the answers to this question can help them understand more about a potential hire’s personality and habits. What they will look for in a potential employee’s response:
- The procedures taken to speak through the negatives
- Assisting clients in dealing with negative criticism in a constructive way
- Steps taken to assist clients in improving
Example: “When I have to give constructive criticism, I prefer to focus on the positives than downsides. I tell the customer what’s wrong, but I also walk them through a strategy for changing their behavior.”
- Have you worked as an auditor with various types of software and what are your qualifications?
To augment their hard skills and maintain track of data, modern auditors can utilize various accounting software. Therefore, a potential recruit should be familiar with one or two of the industry’s most prevalent programs. Things that the interviewer will look for through your response:
- Knowledge of how to use auditing software
- Examples of the interviewee’s technological usage
- A desire to pick up new skills
Example: “I’m most familiar with these three types of auditing software, and I can tell you how I’ve effectively utilized them in the past. I’m willing to try out new applications if needed.”
- What’s your procedure for approaching an audit before it’s started?
From start to completion, there are numerous steps to perform in the auditing process. Before an audit can be conducted, auditors must generally perform numerous duties. This question allows you to determine how effectively the applicant prepares for audits. If they demonstrate that they are well-organized and have a strategy in place before the audit, you can be certain that they are trustworthy and that the audit will go well.
The interviewer wants to ensure that you comprehend the entire auditing procedure from beginning to end. Many auditors are ready to address questions about the audit; however, they may not even have practiced talking about what happens pre and post-audit. Knowing how to respond to this question will set you out from the crowd.
Example: “There are a few things you should do before starting an audit that will make it go more easily. The following are some examples; however, they are by no means fully accurate.
- Assuring that the audit team’s authority is created, which will improve the departments being audited’s cooperation.
- Choosing which corporate departments will be audited. If the firm establishes an annual audit strategy, this will be much easier.
- The personnel necessary along with the audit’s objectives and goals should be outlined when developing an audit plan. It also aids in the verification of the auditor’s authority.
- Schedule a meeting with the organization’s leadership team as well as the auditors to discuss the audit’s plan, objectives, and range. This allows all concerns to be addressed and discuss the audit as well.
- Examine the papers you’ll be auditing to familiarise yourself with the data they contain.
- Conduct an initial meeting with the personnel of the departments being audited to explain the audit’s objective and logistics, as well as to address any concerns they may have.”
- What are the most prevalent reasons for audits, and what actions trigger them?
The interviewer wants to know more than just about your auditing abilities to evaluate how well you comprehend the entire auditing process. In addition, the capacity to connect directly with clients will be demonstrated if you correctly answer this question.
Example: “An audit’s objective is to check the accuracy of a company’s financial reporting and accounting system while also assessing any possible hazards. Management or investors of a firm might seek an audit at any time. In addition, audits may be required by the industry in which a business operates, by government rules, or in reaction to legal actions.”
- What does vouching include, and how does it function in the auditing process?
This is a technical inquiry meant to verify your auditing abilities and expertise. This question will be met with a clear response from the interviewer. Ensure you don’t use jargon or words that people who aren’t familiar with audits might not comprehend.
Example: “Vouching is a method of confirming the existence of an accounting record or another item. This is done by looking at supporting papers such as receipts, invoices, and so on.”
- How would an internal audit impact the organization and what are its primary functions?
The interviewer is looking for evidence that you understand why the position is important and how the work you do benefits the company, which is the goal of this question.
Example: “An internal audit is a study that helps management retain control over the firm. An internal audit’s main responsibilities include:
- Processes are being monitored to aid in their management and optimization.
- Verification of monetary and financial data
- Examining the company’s operations to ensure efficiency and cost-effectiveness
- Assuring that all applicable rules and regulations are followed.”
- What would you rank as essential in the abilities of a staff auditor?
This question might be asked for two reasons by the interviewer. Because you will only talk about your talents, the first step is to assess if you have the skills they are seeking. The second reason is that they are curious about your self-awareness and ability to reflect. Your response should reflect your top auditing skills and be in line with the job posting’s requirements.
Example: “While a staff auditor should have a wide range of abilities, the most important is attention to detail, analysis, organization, and communication. Because missing anything during an audit contradicts the audit’s objective, it’s critical to pay close attention to every detail. The ability to evaluate the information provided assists in the process of identifying issues that need to be brought to the company’s notice. The auditing process is more efficient and successful when you have organizational abilities. Finally, being able to communicate audit results, as well as any suggestions emerging from the audit, will help you offer value to the business.”
- Define the term “audit” or “auditing” and explain what it means.
Different authors have defined the term “audit” or “auditing” in various ways. However, the interviewer doesn’t want you to recite something you learned; they would like to know how you perceive that word. Therefore, you need to explain it in a way you and the interviewer understand and portray your own charm by adjusting the meaning.
Example: “The process of auditing entails checking, vouching, and verification. It is the technique by which an auditor attempts to determine the correctness or otherwise of financial records, balance sheets, and other financial statements.”
- Enumerate the Essential Features of Statutory Audit.
This question will help the employer better understand your point of view regarding how stationary audit works and its features.
Examples:
“Making a thorough evaluation of the bookkeeping, accounting, and internal control systems through a review process.”
“Conducting such tests and inquiries as the auditors think necessary to establish an opinion on the records’ reliability and dependability as a basis for compiling accounts and related financial information and/or statements.”
“Ascertaining and ensuring that the Profit and Loss Account and the Balance Sheet are by the underlying records using a technique of comparison to determine and ensure that they are by them and with generally accepted accounting standards.”
“Conducting a thorough inspection and evaluation of the Income statement and the Balance Sheet to report to the members stating whether or not the Profit and Loss Account and the Balance Sheet are in line. A report to the members may be issued if, in the opinion of the auditors, the accounts are, and the items are stated in such a way that they provide not only a truthful but also a fair perspective and provide the information needed by the Act in the prescribed manner.”.
- Is auditing considered a profession? Discuss.
This question requires quite a lengthy and detailed explanation in your own words to relate auditing as a profession.
Example: “Organization, socially desired, and socially desirable are some of the characteristics that define a career. In addition, education, training, and licensing, as well as an established code of ethics, public recognition, and an opinion based on expert judgment, are all required.”
As discussed below, each of these characteristics fits well with auditing as a profession:
- Organization: The Institute of Chartered Accountants of India and the Institute of Cost and Works Accountants of India are the most prominent organizations in India when it comes to public accounting and statutory auditing.
- Socially Desirable: Any profession’s contributions to society should be beneficial. This job is referred to as “attestation of financial statements” or “attestation of cost statements” in auditing (by cost auditors). This attest role helps society and all interested parties, including investors, creditors, business associates, employees, analysts, the community, and the government. The attest role’s necessity and social benefit completely illustrate the consequences of the socially desirable feature as it relates to auditing as a profession and its contribution to society.
- Education, Training, and License: Minimum academic qualifications for student registration, scheme of articles or apprenticeship, ongoing training programs for members, gradation of membership into Associates and Fellows, certificate of practice as evidence of technical comprehension of professional quality in the discipline of accounting and auditing, and so on are all necessary requirements.
- Established Code of Ethics: People in any recognized field are held to a high standard of conduct by the general public. The formal code serves as a guide for auditors in the field. It sends a message to the public that practicing auditors are willing to act with honesty and independence and are expected to do so.
- Public Recognition: In India, the institutes ICAI and ICWAI have achieved significant development in this area. For example, Accounting Professionals and Financial Advisors are well-known.
- The Opinion Expressed Based on Expert Judgment: Any professional activity aims to provide the expression of an opinion based on expert judgment. The unqualified opinion of an auditor on a client’s financial statements (by a statutory financial auditor, usually a Chartered Accountant) and cost statements (by a statutory Cost Auditor, usually a Cost Accountant) is normally required for reporting.
Other sorts of opinions, such as qualified, unfavorable, and disclaimers, need changes in ‘wording’ suitable for each reporting circumstance.
Conclusion
This article contains a collection of frequently asked questions during internal audit interviews. Internal auditing’s technical, human, and behavioral elements are tested in these questions. In addition, each question’s best answer is included. Prepare for your next interview by studying these interview questions.
FAQs
- What are some things you should do to help prepare you for an audit interview?
Preparing for an audit interview is not very different from preparing for any other interview in the same field. You’ll be able to answer any questions thrown at you and make a favorable impression on people who will be making hiring choices for the positions you’re looking for if you remember a few easy facts.
- What exactly are the fundamentals of auditing?
Confidentiality, honesty, objectivity, independence, skills and competence, activities completed by others, documentation, planning, audit evidence, financial accounting, internal control, and audit reporting are essential concepts of auditing.
- Name the different types of audits?
Internal audits, internal audits, and Internal Revenue Service (IRS) audits are the three primary audits. In addition, external audits are usually conducted by Certified Public Accounting (CPA) companies, resulting in an auditor’s opinion that is included in the audit report.
