Internal Auditor Mock Interview
Master 25 Internal Auditor interview questions covering risk assessment, controls testing, and compliance frameworks.
Question 20 of 25
In an audit, who is primarily responsible for the prevention and detection of fraud?
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Brian Schuchart is a CPA and Senior Finance Business Partner. His professional experience includes senior management roles with NBC Sports, Virtual Health, and the Children's Hospital of Philadephia.
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. Given this, an internal auditor's role is integral in giving management confidence in both the financial statements and internal controls.
Brian Schuchart is a CPA and Senior Finance Business Partner. His professional experience includes senior management roles with NBC Sports, Virtual Health, and the Children's Hospital of Philadephia.
"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 honesty and ethical behavior. As internal auditors, our jobs are extremely important as by carrying out our responsibilities, we are giving management confidence in both the financial statements and the company's internal controls."
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Anonymous Answer
Management and leadership are responsible for the prevention and detection of fraud. They can utilize the internal audit function as a resource to uncover areas of weakness and for recommendations to mitigate those risky areas.
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To make your response more meaningful and memorable to the interviewer, discuss how in the past as an internal auditor you have uncovered weaknesses and made recommendations to management. While management is ultimately responsible, show the interviewer how you will personally play a role in preventing and detecting fraud. Great job!
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