Internal Auditor Mock Interview

Master 25 Internal Auditor interview questions covering risk assessment, controls testing, and compliance frameworks.

Question 18 of 25

What is the difference between fraud and error?

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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.

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).

Brian Schuchart

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.

"The main difference between fraud and error is that fraud is intentional and errors are unintentional. As internal 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."

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Anonymous Answer

Fraud is intentional and Error is unintentional. While both are areas of weakness. An internal auditor's role is to focus on areas of fraudulence and the behaviors associated with them. Errors can be mitigated by pointing the errors out and processing why those things can happen.

Marcie's Feedback

Excellent! You clearly have a solid understanding of the difference between fraud and error. The interviewer will appreciate that you're knowledgeable about this and know how to handle both situations.

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25Internal Auditor Interview Questions & Answers

Behavioral

1.Why do you want to be an internal auditor?

Technical

2.What qualities or skills do you believe a good internal auditor should possess?

Behavioral

3.Where do you see yourself in five years?

Technical

4.Why do companies require audits?

Technical

5.What are the differences between an audit, a review and a compilation?

Behavioral

6.How do you feel your education has prepared you for the internal auditor role?

Technical

7.How do external auditors rely on the work of internal auditors?

Behavioral

8.How would you deliver excellent customer service to colleagues within the organization?

Technical

9.Explain how the Sarbanes-Oxley Act changed the auditing profession.

Behavioral

10.What would you do if during an audit you found an accounting practice that was suspicious?

Behavioral

11.Are you open to travel with this position?

Technical

12.What is the purpose of the internal audit function?

Behavioral

13.What is your experience with presenting to senior executives?

Behavioral

14.How would you handle working in an increasingly remote environment?

Technical

15.What is the purpose of audit documentation?

Technical

16.Have you sat for the CPA exam or are you planning to sit for the CPA exam?

Technical

17.How do you keep up with the latest developments in auditing standards?

Technical

18. What is the difference between fraud and error?

Behavioral

19.How do you mitigate and manage stress?

Technical

20.In an audit, who is primarily responsible for the prevention and detection of fraud?

Technical

21.What are some ways that internal audit interacts with external auditors?

Behavioral

22.What are some of the ways that you can show professionalism when out on an internal audit assignment?

Behavioral

23.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?

Technical

24.In your opinion, why is it important for organizations to have effective internal controls?

Technical

Internal Auditor Mock Interview

What is the difference between fraud and error?

25Internal Auditor Interview Questions & Answers

1.Why do you want to be an internal auditor?

2.What qualities or skills do you believe a good internal auditor should possess?

3.Where do you see yourself in five years?

4.Why do companies require audits?

5.What are the differences between an audit, a review and a compilation?

6.How do you feel your education has prepared you for the internal auditor role?

7.How do external auditors rely on the work of internal auditors?

8.How would you deliver excellent customer service to colleagues within the organization?

9.Explain how the Sarbanes-Oxley Act changed the auditing profession.

10.What would you do if during an audit you found an accounting practice that was suspicious?

11.Are you open to travel with this position?

12.What is the purpose of the internal audit function?

13.What is your experience with presenting to senior executives?

14.How would you handle working in an increasingly remote environment?

15.What is the purpose of audit documentation?

16.Have you sat for the CPA exam or are you planning to sit for the CPA exam?

17.How do you keep up with the latest developments in auditing standards?

18. What is the difference between fraud and error?

19.How do you mitigate and manage stress?

20.In an audit, who is primarily responsible for the prevention and detection of fraud?

21.What are some ways that internal audit interacts with external auditors?

22.What are some of the ways that you can show professionalism when out on an internal audit assignment?

23.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?

24.In your opinion, why is it important for organizations to have effective internal controls?

25.Describe your experience using ERP and general ledger software systems