23 Audit Manager Interview Questions & Answers
Table of Contents
Behavioral
1. What qualities or skills do you believe a good auditor should possess?
How to Answer
This question is a good opportunity to show you have an understanding of what qualities make a good auditor. Some key areas to hit are ethics (honesty/integrity), an ability to interact with colleagues and clients (communication skills, people person), an ability to limit mistakes (focused/attention to detail), and an ability to get to the correct answer (skeptical/inquisitive/problem solver).
1st Answer Example
"First and foremost, I believe an auditor should be honest and have great integrity. Without this, it would be impossible for the person to perform the role effectively. Next, the auditor should have the education and technical skills to perform the job. They should have exceptional people skills as they will be required to communicate effectively with colleagues, clients and other parties. They should have an inquisitive mind and a keen attention to detail. Finally, an auditor in a management position should have excellent communication skills."
Behavioral
2. Imagine a staff auditor is making mistakes during audit fieldwork. How would you handle the situation?
How to Answer
Part of an Audit Manager's responsibility is making sure staff auditors are working efficiently and effectively. Describe the steps you would take to ensure that the mistakes being made by the staff auditor are corrected.
1st Answer Example
"As Audit Manager, it is my responsibility to make sure that all staff are performing their duties effectively. If a staff auditor is making mistakes, my first course of action would be to sit with them and discuss the situation. It could be as simple as they misunderstood the assignment. I feel a responsibility to share my knowledge with others. If the problem persists, I would discuss the issue with the Audit Partner and in extreme cases, discuss reassignment to other duties."
Behavioral
3. How do you manage your manager? In other words, what steps do you take to make sure you get what you need from your boss and make both your lives easier?
How to Answer
Also known as 'managing up', 'managing your manager' is a soft skill that can be developed over time. It essentially means doing whatever is necessary to make your manager's job easier. Some clear-cut benefits of managing up include increased productivity and better working relationships between boss and employee.
1st Answer Example
"I am a firm believer in the benefits of managing my manager. At the end of the day, I want to make the internal audit engagements we work on together run as smoothly as possible. One area I really focus on is communicating and prioritizing workload on a regular basis. This ensures that I'm always working on the highest-priority items. Another thing that is crucial is understanding my manager's style. For example, maybe they prefer regular check-ins by email throughout the day or scheduled catch-up meetings, etc. Then, I tailor my communication to their style."
Behavioral
4. How would you deliver excellent customer service to clients in your role as Audit Manager?
How to Answer
Being able to interact and communicate effectively with clients is a key skill for an auditor at any level, and also shows that the candidate possesses the ability to grow into larger roles within the organization, such as director and partner. Setting a good example for more junior staff is a key responsibility of an audit manager.
1st Answer Example
"I believe that being able to communicate with our clients effectively will be key from day one. Whenever I communicate with anyone, I make sure that I am responsive. If I can't give someone the information they are seeking right away, I make sure to let them know the anticipated timing. If there are unexpected delays, I provide updates. I would also make sure I review any documents or emails I send to other departments in order to build trust in my abilities. I would act professionally while out in the field at our clients' places of business. Finally, it is important for me to set a good example for junior staff members."
Behavioral
5. What would you do if during an audit you found an accounting practice that was suspicious?
How to Answer
This is an opportunity to highlight your integrity and honesty. The high-level answer should be obvious - that the concern must be addressed immediately.
1st Answer Example
"If I was working on an audit and discovered a practice that I found questionable, I would immediately voice my concern to the Audit Partner. It's possible that I could be misinterpreting the situation. If not, the partner would provide good counsel on next steps to resolve the situation. The most important thing is to be honest and ethical - two character traits that I am proud to say I possess."
Behavioral
6. Are you open to travel with this position?
How to Answer
The topic of travel will almost certainly come up during your interview. Many large firms send their auditors out in the field for a good portion of the year. Even smaller boutique firms require several overnight trips a year. Given this, be prepared to articulate how much travel you are comfortable with (for example, 25%, 50%, etc). Most job descriptions will include the expected amount of travel. The interviewer is gauging whether you are a candidate that is willing and able to meet the travel requirement, so try to align your answer with the expectation of the role.
1st Answer Example
"I am definitely open to travel. I saw on the job description that travel is estimated to be 25%-50%, which I am comfortable with. Since I am still growing in the profession, I think traveling would be a fantastic opportunity for me to immerse myself in the role and learn as much as I can about our clients and their operations."
Behavioral
7. Why do you want to work at ABC Public Accountants?
How to Answer
This question is an opportunity to show you have done your research on the firm. Be sure to mention some of the firm's biggest clients, as well as some of the industries they specialize in.
1st Answer Example
" I believe continuing my career at ABC Public Accountants would be a very rewarding experience. First, the firm specializes in industries that I find interesting, such as aerospace and technology. It would be a very exciting opportunity to work with clients such as XYZ Aeronautics and American Technologies. Secondly, I have heard about ABC's amazing culture and how they promote continuing education and mold leaders. Alumni from my school have talked about ABC's Leaders of Tomorrow mentorship program, which sets the firm apart from others. For these reasons, the open Audit Manager role at ABC is very appealing to me."
Behavioral
8. What is your experience with interacting with senior executives at various organizations?
How to Answer
An Audit Manager will be expected to interact with senior leadership of the firm's clients. Many times, the manager will be the highest ranking firm representative in the field. Highlight that you not only have experience presenting in front of leadership, but also that you are comfortable doing it. Be specific with what you presented.
1st Answer Example
"I have ample experience getting in front of leadership and presenting. In my previous role as senior auditor, I would meet with Controllers, CFOs, and other client leadership while completing walk-through documentation and to discuss issues. I always felt the need to prepare in advance for any questions that might arise, and would promptly follow-up on anything that developed during those meetings. Even though these were low-risk conversations, the interactions gave me confidence at an early stage in my career."
Behavioral
9. How would you handle working in an increasingly remote environment?
How to Answer
This is a question to gauge if you are disciplined enough to work from home. Be sure to touch on how you would stay focused and communicate with team members. Even after things return to normal, remote work may continue to be more common across many industries, including auditing. Being able to effectively manage your projects with little supervision sets you up to be promoted to management roles in the future.
1st Answer Example
"I have experience working remotely. In my previous role as senior auditor, we were able to work from home on Fridays in the summer. I enjoyed working from home, and was able to stay on task and communicate effectively with my team members. There were some ground rules I implemented, such as maintaining regular hours, keeping my morning routine as if I was going to the office, and scheduling breaks to take care of non-work related tasks. I also had a standing meeting with my manager and team members every morning to discuss priorities for the day. Working remotely would not impact my productivity or the timeliness in which I correspond with colleagues."
Behavioral
10. How would you describe your management style?
How to Answer
The interviewer is checking to see if you are an effective leader and are a good fit for their company culture. A good way to kick off your answer is to describe what you believe makes a strong manager. Then note that you have those qualities.
1st Answer Example
"There are some key qualities that I believe make a strong manager. First, I believe a manager should give clear directions and then let their staff take those directions and run with them. I then make myself available to answer questions and offer guidance. Additionally, I believe a manager should be flexible, understanding that each employee has different needs and working styles. I try to make these qualities part of my management style."
Behavioral
11. How do you mitigate and manage stress?
How to Answer
The life of an auditor can be stressful with a lot of travel and deadlines. The interviewer wants to gain insight into how you react to stressful situations.
1st Answer Example
"Due to tight deadlines, travel and other demands of the senior auditor role, stress is inevitable. However, there are steps I take to help mitigate stress. First, I try to be as organized as possible. I am constantly prioritizing my workload to make sure time-sensitive tasks are handled before they are due. Next, I try to leave work at work. When not at work, I enjoy exercising, reading, and traveling. Being able to enjoy these activities makes me feel calmer and rejuvenated while at work."
Technical
12. What are analytical procedures and what are some examples?
How to Answer
Analytical procedures are techniques and methods that auditors use to obtain audit evidence, which allows them to express an audit opinion. The five main types of analytical procedures are analytical review, inquiry, observation, inspection, and recalculation.
1st Answer Example
"Analytical procedures are the techniques and procedures we use as evidence to express our audit opinion on the client's financial statements. Some common procedures include analytical review, inquiry, observation, inspection, and recalculation."
Technical
13. In your opinion, why is it important for organizations to have effective internal controls?
How to Answer
Internal controls are rules, regulations, and safeguards that an organization puts in place to ensure integrity of financial information and to prevent fraud. There are several benefits to having robust and effective internal controls, including preventing fraud/theft, improving accuracy of financial reporting, and complying with laws and regulations.
1st Answer Example
"Internal controls are vital for organizations of all sizes. First and foremost, internal controls are necessary to be in compliance with all relevant laws and regulations. Additionally, strong internal controls are necessary to prevent fraud and theft by employees. Finally, strong and effective internal controls result in improved timeliness and accuracy of financial reporting, which makes for smoother audits."
Technical
14. What areas of public accounting or industries are you most interested in?
How to Answer
In large firms, there may be different divisions that focus on various areas of public accounting (auditing, taxation, etc). If the job description identifies which areas the role is focused, make sure you mention those areas in your answer.
1st Answer Example
"I was excited to come across this role, because I am very interested in corporate taxation. I am also interested in technology, and I know this firm specializes in the technology industry. I have a strong desire to learn more about other areas of public accounting and different industries, so employment in a large firm such as XYZ Public Accountants is very appealing to me."
Technical
15. What is the auditor's responsibility when planning an audit?
How to Answer
Auditing standard AU-C Section 300 Planning an Audit covers what the auditor's responsibility is during the planning phase of the audit. The engagement partner and other key members of the audit team should be involved. As a staff auditor, you will be heavily involved in the planning process, so it's important to brush up on the requirements detailed in the standard.
1st Answer Example
"During the planning phase of an audit, the engagement partner and other key engagement team members should establish an understanding of the terms of the engagement, assess the continuance of the client relationship, and develop an overall audit strategy that sets the scope, timing, and direction of the audit."
Technical
16. In an audit, who is primarily responsible for the prevention and detection of fraud?
How to Answer
According to auditing pronouncement AU-C Section 240, a company's management is primarily responsible for detecting fraud and preventing it in the first place, by having effective internal controls. An auditor must conduct an audit in accordance with GAAS (generally accepted auditing standards). However, given the limitations of an audit, there is an inherent risk that not all material misstatements will be detected.
1st Answer Example
"Ultimately, it is a company's management that is responsible for preventing and detecting fraud within their organization. They can achieve this by implementing effective internal controls and committing to a culture of honest and ethical behavior. As auditors, there is a chance we would catch fraud and misstatements during our audit. However, there is an inherent risk that an audit won't catch all material misstatements and fraud."
Technical
17. What is the difference between fraud and error?
How to Answer
This is a technical topic covered in the auditing standards under AU-C Section 240. The key difference between fraud and error is that the former is intentional and the latter is unintentional. There are two main types of fraud that an internal auditor should be concerned with: fraudulent reporting and misappropriation of assets (ie theft).
1st Answer Example
"The main difference between fraud and error is that fraud is intentional and errors are unintentional. As auditors, we are primarily concerned with financial misstatements that are caused by fraudulent financial reporting and misstatements that are caused by theft and other misappropriation of assets."
Technical
18. How do you keep up with the latest developments in auditing standards?
How to Answer
This question is asked to determine if you take the initiative to stay current on the latest accounting developments. If you are a CPA, talk about how you use mandatory continuing education requirements to stay up to date on the latest trends and regulations.
1st Answer Example
"I stay up to date in various ways. First, I subscribe to e-newsletters from the American Institute of Certified Public Accountants for auditing standards updates and the Financial Accounting Standards Board for updates to generally accepted accounting principles. Additionally, since I am a CPA, I stay up to date on new standards for continuing education courses. I try to select courses that align nicely with the roles and responsibilities of my current position."
Technical
19. What is the purpose of audit documentation?
How to Answer
This is a technical question, asked to see if you are able to articulate the information that is gathered in the field to support the audit. According to auditing standards (pronouncement AU-C Section 230), the two primary purposes of audit documentation are 1) to provide evidence to support the auditor's conclusion and 2) to provide evidence that the audit was planned and performed appropriately.
1st Answer Example
"There are a couple important purposes of audit documentation. First, the documentation needs to support the conclusion the auditor reached in the audit report. Secondly, the documentation serves as evidence that the audit was planned and performed in accordance with generally accepted auditing standards."
Technical
20. Explain how the Sarbanes-Oxley Act changed the auditing profession.
How to Answer
The Sarbanes-Oxley Act is major legislation passed in 2002 that substantially changed the accounting and auditing professions. It was enacted in response to major fraud scandals such as Enron and WorldCom. The interviewee should know the Act in detail, as it is a key driver of the profession, but a summary here will suffice.
1st Answer Example
"The Sarbanes-Oxley Act was passed into legislation in 2002 in response to fraud scandals like Enron. The goal of SOX was to protect investors and employees from fraudulent reporting. As a result, there is a greater onus on auditors to provide assurance that financial statements are free of material misstatement. For example, auditors are now required to test a company's internal controls and report on their effectiveness. Additionally, there are stricter requirements for financial statement disclosures."
Technical
21. As external auditors, how can we rely on the work of internal auditors?
How to Answer
As part of their responsibilities, internal auditors document policies and procedures. In some cases, external audit firms can rely on the work of the internal audit team in conducting the financial statement audit.
1st Answer Example
"Audit rules require auditors to obtain an understanding of a client's internal controls. As part of their responsibilities, an internal audit team often documents and assesses internal controls for their organization. In some cases, the external auditors can leverage this work in completion of their financial statement audit. In other words, they don't need to duplicate the work of the internal audit team. However, as external auditors we will often need to do our own transaction testing and therefore cannot rely on the internal audit team's work."
Technical
22. How do you feel past experience has prepared you for the Audit Manager role?
How to Answer
Be sure to highlight the different areas you were exposed to as a Staff/Senior Auditor. To not sound like a 'know it all', make sure to acknowledge that even in a manager role, there is still plenty to learn once you have been hired.
1st Answer Example
"I have been in a Senior Auditor role for the last two years, and I have been fortunate to have been exposed to a variety of different roles and responsibilities. Since I work at a boutique accounting firm, I was able to be involved in all aspects of the audit, including planning, internal controls assessments, tax returns, and analytical procedures to name a few. Additionally, even though my role was not technically manager level, I still took pride in taking younger staff under my wing. I believe that this experience sets me up nicely for the next step in my career. Of course, I also realize there is much more to learn as I grow."
Technical
23. As an audit manager, what steps would you take to ensure audit fieldwork runs smoothly?
How to Answer
Auditors have a limited amount of time in the field and time must be utilized effectively. An Audit Manager is responsible for planning the audit and making sure the audit runs smoothly during fieldwork.
1st Answer Example
"As an Audit Manager, I understand that I will be heavily involved in the audit planning process before we perform fieldwork for the client. I would use the planning documents as my field guide to ensure that the fieldwork is running as planned. I would check in with the Audit Partner daily or even more frequently, if issues were to arise. I would also manage the staff auditors to make sure they were using time efficiently."