25 Senior Auditor 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), ability to interact with colleagues and clients (communication skills, people person), ability to limit mistakes (focused/attention to detail) and ability to get to the correct answer (skeptical/inquisitive/problem solver).
Answer Example
"First and foremost, I believe an auditor should be honest and have great integrity. Without this, it will 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. Finally, they should have an inquisitive mind and a keen attention to detail."
User-Submitted Answer
"A good auditor should possess professional skepticism at all times, a critical and analytically thinking mind. Organizational skills are of utmost importance as auditors have to always perform under stringent deadlines and within timeframe budgets. Hence being able to prioritize tasks is key for the auditor on any engagement. Good research skills and working to maintain client relationships is an important quality to have."
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Cindy Ramsey Reviewed the Above Answer
Great, now explain and show examples of how you possess these qualities and skills. This will help convince the interviewer that you're a good fit for the position.
Behavioral
2. 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.
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 where 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, do they like regular check-ins by email throughout the day, scheduled catch-up meetings, etc. Then I tailor my communication to their style."
User-Submitted Answer
"I feel managing your manager is an art that takes a while to achieve. For me, it is personally very important to build such a relationship with the higher-ups in the team to be able to effectively get the deliverables out. Being able to prioritize my workload and keeping my manager informed about the progress. I gauge my manager's working style to understand what he/she likes. For example, there are some managers who like to get frequent updates or check-ins through emails as to the work in progress. While others are like, get the work done and just manage it yourself. So understanding this style is important. And then I tailor myself to match the particular style. In my previous roles and in my current role as well, my manager calls me his right hand and I feel great to get this appreciation as that boosts my confidence that I am a very important person on the team."
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Cindy Ramsey Reviewed the Above Answer
Very good! Can you provide some "real-life" examples from your experience rather than relying on hypotheticals? This will help show your approach in action.
Behavioral
3. What are some of the ways that you can show professionalism when out on an audit assignment?
How to Answer
In public accounting (as well as many other service-based professions), showing professionalism while interacting with clients is essential. The interviewer is gauging how much awareness the candidate has.
Answer Example
" It is extremely important to display professionalism when we are out in the field conducting audit procedures at our client's place of business. First and foremost, I know that I must look the part by adhering to the appropriate dress code. For some clients, a suit is appropriate. For others, business casual attire. Secondly, I know I must act professionally. This means speaking respectfully to all personnel, whether it is the company's CFO or a personal assistant. I shouldn't take personal phone calls or play music loudly. As a general rule, I shouldn't do or say anything that would harm our firm's reputation."
User-Submitted Answer
"I would only act in a way that does not jeopardize our firm's reputation. Like wearing formal business attire or maybe business casual if the client's office is more casual. Secondly, not answering personal phone calls if I am in a conversation with someone, be it the CFO or maybe the junior assistant. If I have to answer in an unforeseen emergency situation, I would seek permission from the person I am interacting with to allow a moment to take the phone call. Some simple basic office etiquettes speak a lot about a person and also reflect the firm's respect."
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Cindy Ramsey Reviewed the Above Answer
Very good. I like your use of examples in your answer.
Behavioral
4. 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.
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 at work."
User-Submitted Answer
"Stress is an inevitable part of our lives. I follow a daily routine to practice yogic exercises and meditation techniques that help to reduce stress levels. When out of work, I prefer to watch some music shows that relax and rejuvenate my mind to be better prepared for challenging tasks."
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Cindy Ramsey Reviewed the Above Answer
Good! Talking about your process to reduce stress will help the interviewer envision how your current process will help with future stress.
Behavioral
5. 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.
Answer Example
"I have experience working remotely. In my previous role as staff auditor, we were able to work from home on Fridays since it was 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 with which I correspond with colleagues."
User-Submitted Answer
"I respect the importance of being self-disciplined during office hours even in a remote environment. Following a set pattern of tasks, continuously monitoring work progress, and keeping my seniors and managers informed about my work timelines. Setting up quick video stand-up calls to discuss workload schedules and nearing priority jobs."
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Cindy Ramsey Reviewed the Above Answer
Great strategies! How do you stay focused in a remote environment?
Behavioral
6. What is your experience with interacting with senior executives at various organizations?
How to Answer
A senior auditor will at times be expected to interact with senior leadership of the firm's clients. 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.
Answer Example
"I have ample experience getting in front of leadership and presenting. In my previous role as staff auditor, I would meet with Controllers, CFOs and other client leadership while completing walk-through documentation. I always felt the need to prepare in advance for any questions that might arise, and would often circle back promptly on follow-ups that developed during those meetings. Even though these were low risk conversations, the interactions gave me confidence at an early stage in my career."
User-Submitted Answer
"I have got the opportunity to present my audit findings to a team of board members and the audit committee. This was my first opportunity as a staff auditor, it was a very scope-specific assignment that required a lot of fieldwork, documentation, understanding of laws and regulations, I was leading this team and the engagement Partner wanted me to lead the presentation. The questions that were asked by the board committee were all answered by me to their satisfaction and this turned out to be a very favorable billing close to a 90% increase from the regular billing. Apart from that I have also interacted with senior executives during fieldwork and preparing audit documentation, getting an understanding of clients' business and processes."
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Cindy Ramsey Reviewed the Above Answer
Very impressive. How did you prepare for these interactions? Can you demonstrate your understanding of what senior executives need from their auditors?
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.
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, this Senior Auditor role at ABC was very appealing to me."
User-Submitted Answer
"ABC Public Accountants is the name in the industry, I have read about the company's mentorship program which really attracted me to apply for the position. There is a lot of scope for understanding audits in greater depths based on the methodology adopted by ABC. I read on your website about ABC building a relationship with the Disability Association, which will focus on creating employment opportunities for people with disabilities. I think that is a very good initiative on social concerns."
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Cindy Ramsey Reviewed the Above Answer
Nice! This sounds like a well-researched answer. There's an opportunity to show and tell how you'd also contribute. What can you bring to the firm? How are you uniquely qualified to contribute to the firm's mission?
Behavioral
8. 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.
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 possible from my colleagues."
User-Submitted Answer
"Yes, definitely I am willing to travel. I remember this job description mentioned about estimated 25% of the travel during the year. I think traveling, meeting different people, and learning from different perspectives help one to have a broad mindset which is an important aspect of conducting audits."
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Cindy Ramsey Reviewed the Above Answer
Good! You sound prepared to fulfill this requirement of the job.
Behavioral
9. 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.
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 Manager. It's possible that I was misinterpreting the situation. If not, my manager 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."
User-Submitted Answer
"I would investigate more into details, gather some evidence based on my research and investigation and discuss the issue with my supervisors and managers to gain some more insight into the suspicion. I would seek their opinion as they would be in more senior positions than me and that would also bring a learning opportunity for me."
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Cindy Ramsey Reviewed the Above Answer
Great. Your process sounds very responsible and even-handed. Do you have an example of following a suspicion to a conclusion that you can share?
Behavioral
10. How would you deliver excellent customer service to clients in your role as Senior Auditor?
How to Answer
Being able to interact and communicate effectively with clients is a key skill for an auditor, and also shows that the candidate possesses the ability to grow into larger roles within the organization such as manager and director. Setting a good example for more junior staff is a key responsibility of a senior auditor.
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 more junior staff members."
User-Submitted Answer
"I am a person who is very responsive to my clients. I ensure to keep my clients updated with my timelines to be able to provide them with the deliverables. In case, if due to a priority change, I will not be able to deliver within the decided timeframe, I will update the clients with an anticipated timeline. I like to educate my clients, have a friendly and open channel of communication with them."
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Cindy Ramsey Reviewed the Above Answer
Great! To make your answer even stronger, use an example from your past to show how you've delivered great customer service.
Behavioral
11. As a Senior Auditor, what are some steps you can take to guide new staff when out on client engagements?
How to Answer
Even though Senior Auditor is not a manager-level position, the interviewer wants to know if you have management skills. Some examples include providing on the job training and serving as a liaison between the Audit Manager and the junior staff.
Answer Example
"I take pride in taking more junior staff 'under my wing' when out on audit engagements. There will be times when I am the most senior person in the field, and it will be my responsibility to take on managerial duties. I enjoy passing on my knowledge to others and providing on the job training.."
User-Submitted Answer
"A senior auditor is the one who leads the engagement on the field. I am someone who likes to coach and mentor new staff by sharing my knowledge base with them and giving them on-the-job training. Assigning audit areas to field staff is the first stage in planning the audit. Helping them interpret complex situations, answering any questions they might have, and monitoring their work."
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Cindy Ramsey Reviewed the Above Answer
Good start. Now, I'd explain how you'd guide staff through these stages. Have you done so in the past? If so, use an example to make your answer live for the interviewer.
Behavioral
12. Why do you want to be a Senior Auditor?
How to Answer
This question is a way for the interviewer to find out a little bit about what makes you tick. Be honest and direct - don't give a phony answer that the interviewer will see through. Try to tie the roles and responsibilities of an auditor to your background.
Answer Example
"Since I was young, I have always liked math and have been good with numbers. I took an accounting class in high school and really enjoyed it - the concepts came naturally to me. As I researched careers in accounting, auditing really appealed to me because it is almost like being an accounting 'detective'. Working as a staff auditor the last two years was a great way to test the waters, and I look forward to continuing to grow in an exciting career."
User-Submitted Answer
"Audit as a subject has always enticed me because it covers traits such as questioning my mind, being inquisitive, analyzing financial statements, and creating or designing improved processes for clients. Moreover, I like to conduct research on the accounting principles and standards set forth by authoritative guidance. I believe the role of a senior auditor will help me master these skills."
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Cindy Ramsey Reviewed the Above Answer
Good!. The way you talk about areas of the position that are fascinating to you is effective. Your passion comes through.
Technical
13. 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.
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."
User-Submitted Answer
"The Sarbanes-Oxley Act was passed as legislation in 2002 when Enron collapsed. This was introduced mainly to protect the stakeholders from fraudulent financial reporting and misappropriation of assets. That being said, increased an auditor's responsibilities by performing more significant tests of internal controls as there were charges on auditors for being negligent and not performing audits with due diligence."
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Cindy Ramsey Reviewed the Above Answer
Great, again you sound very knowledgeable about the law and also its application. But showing how you've applied SOX would show your qualifications in action.
Technical
14. 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.
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."
User-Submitted Answer
"There is a separate AICPA auditing standard that governs "Using the work of internal auditors". The external auditor can obtain an understanding of the clients' internal controls and processes by reading the reports of the internal auditors. In planning the high-risk audit areas and based on the auditor's assessment of risk that the financial statements could be materially misstated, the external auditor can seek an opinion from the internal auditor about the controls related to these areas. Accordingly, the external auditor can determine the extent to perform audit procedures, using tests of controls or substantive testing."
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Cindy Ramsey Reviewed the Above Answer
Great answer. Again, you sound extremely knowledgeable. Can you show, through your own example, how you've appropriately relied on internal auditors to show an application of your knowledge?
Technical
15. How do you feel your experience as a Staff Auditor has prepared you for the Senior Auditor role?
How to Answer
Be sure to highlight the different areas you were exposed to as a Staff Auditor. To not sound like a 'know it all', make sure to acknowledge that there is still plenty to learn once you have been hired.
Answer Example
"I have been in a Staff Auditor role for the last two years, and I have been fortunate to be 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. I believe that this experience sets me up nicely for the next step in my career. Of course, I also realize that there is much more to learn as I grow."
User-Submitted Answer
"In my role as a staff auditor, I have hands-on experience at the field-level work, meeting clients, discussing their goals, and helping them align their goals with that of our firm's audit objectives. I have had the opportunity to mentor 2 interns and 1 associate. I believe my previous experiences and learnings gained as a staff auditor will help me perform efficiently as a Senior Auditor."
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Cindy Ramsey Reviewed the Above Answer
Great. Your experience sounds on-point.
Technical
16. What are the differences between an audit, a review and a compilation?
How to Answer
Audits, reviews and compilations are the three main types of engagements an auditor will perform. Being able to articulate the differences between these services is essential. Conversely, not being able to state the differences could be a disqualifier from the role you are interviewing for.
Answer Example
"The main differences between the three types of engagements are the scope of services performed and the level of assurance provided. A compilation is simply financial statement preparation by the auditor based on representations from management. In a compilation, the auditor is not required to provide any assurance that the financial statements are accurate and free from errors/fraud. A review is more involved, and requires the auditor to perform analytical procedures and inquiries of management to ascertain that information contained in the financial statements is correct. In a review, the auditor provides limited assurance that the financial statements do not require any material modifications. In an audit, the auditor provides assurance that the financial statements are free of material misstatement or errors. This requires the auditor to expand the scope of the engagement to test ending balances, perform tests of internal controls, acquire third party confirmations and physically confirm assets, among other procedures."
User-Submitted Answer
"The audit gives a reasonable assurance on whether the financial statements are materially misstated as a whole. A review gives a limited assurance on financial statements without performing any audit procedures. A compilation does not give any form of assurance, While an independent CPA is required to perform an audit and review engagement, compilation can be performed by any practitioner, CPA or not."
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Cindy Ramsey Reviewed the Above Answer
Great! You sound extremely knowledgeable about the distinctions. The question presents an opportunity to show how you've conducted each. Can you expand by using an example to describe your work in each of these areas?
Technical
17. What is the purpose of audit documentation?
How to Answer
This is a technical question 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.
Answer Example
"There are a couple of important purposes of audit documentation. First, the documentation needs to support the conclusion that 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."
User-Submitted Answer
"Audit documentation is the auditor's property. It is the working papers of the audit engagement which the auditor may use in the event of any legal charges raised on the auditor. These are evidence of work performed by the auditor that stands as evidence of his due diligence in the performance of his duties as an auditor."
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Cindy Ramsey Reviewed the Above Answer
Great! How do you ensure that your documentation is precise and accurate?
Technical
18. Have you sat for the CPA exam or are you planning to sit for the CPA exam?
How to Answer
Obtaining a CPA license is a major step an auditor can take to show they are committed to growing in the accounting profession. These days, many students are able to sit for the CPA exam before they graduate. For many firms, a CPA license is a prerequisite to advance to a Senior Auditor position.
Answer Example
"Becoming a CPA was a major goal for me in my career, as it will help me grow in the accounting and auditing profession. Once I was hired for a Staff Auditor position, I set a goal to pass all four parts of the exam in 18 months. I am proud to say I was able to do just that, and I'm looking forward to utilizing the knowledge I obtained in the next phase of my career."
User-Submitted Answer
"I hold a CPA license."
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Cindy Ramsey Reviewed the Above Answer
Good, straightforward answer.
Technical
19. How do you keep up with the latest developments in auditing standards?
How to Answer
This question is to see 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.
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 with new standards with continuing education courses. I try to select courses that align nicely with the roles and responsibilities of my current position."
User-Submitted Answer
"I am an avid reader of the latest developments in our profession as that keeps me abreast of the changing financial reporting and auditing environment. I have subscribed to the Journal of Accountancy and to accountingweb.com. These platforms provide regular updates to the developments in our profession. Recently I read about the impact of data visualization and data analytics on the role of an auditor."
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Cindy Ramsey Reviewed the Above Answer
Excellent! You can expand your answer by talking about a hot topic or recent article that would be of interest to the interviewer.
Technical
20. 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).
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."
User-Submitted Answer
"Fraud is an intentional act to deceive a person. For instance - An employee embezzles inventory from the warehouse and reports this transaction as a cash sale without recording the cash into the cash balance, leading to misappropriation of assets. Whereas an error is an unintentional act. For instance - Failure to record expenses under the correct accounting head."
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Cindy Ramsey Reviewed the Above Answer
Very good. Do you have an example you can share where you drew a distinction between the two and took appropriate action? This will help show an application of your knowledge in action.
Technical
21. Why do companies require audits?
How to Answer
This question tests your understanding of the audit process beyond just the basic technical aspects.. Being able to answer this question shows you have a firm understanding of one of the basics of the profession.
Answer Example
"Audits can be required for a variety of reasons. Most commonly, lenders and investors demand audits to ensure that an organization's accounting and financial reporting is free of material misstatement or errors. Some organizations, such as not-for-profits, may be required to have an audit performed by a regulatory body or grant stipulation. In some cases, an organization may choose to have an independent audit performed as good practice."
User-Submitted Answer
"Investors rely on the general managers and officers of the companies who actually run the show. These investors require an independent CPA to attest to the financial statements of the Company since an audited financial statement gives a reasonable opinion about the financial health of the Company and helps investors place reliance upon the Company's internal controls over financial reporting."
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Cindy Ramsey Reviewed the Above Answer
Great. Can you apply your own situation to this question? How have you been able to help clients assess the financial health of a company?
Technical
22. 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.
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 honesty 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."
User-Submitted Answer
"It is the management's responsibility to prevent and detect fraud. The auditor's responsibility is only confined to assessing the risks of material misstatement based on his professional skepticism and judgment. He can rely upon the management's representation as long as the auditor himself exercises due care. As it is said in our auditing language, "Auditor is a watchdog and not a bloodhound"."
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Cindy Ramsey Reviewed the Above Answer
Great answer. This answer showcases your knowledge. Great job!
Technical
23. 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.
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."
User-Submitted Answer
"AICPA's Auditing standard AU-C Section 300 outlines the auditor's responsibilities when planning an audit. The planning strategy should involve deciding the key audit members and personnel performing the audit. It also involves designing a strategy that covers understanding the overall scope of the audit, preliminary discussions on the approach to the audit setting the time, directions & extent."
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Cindy Ramsey Reviewed the Above Answer
Good. Can you show how you applied this in the past?
Technical
24. 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.
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."
User-Submitted Answer
"Having effective internal controls reduces the risk of fraud and misappropriation of assets. It also helps to make the financial statements more reliable and ensures the organization-wide processes are operating effectively. Effective internal controls help to place more reliance on compliance with laws and regulations."
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Cindy Ramsey Reviewed the Above Answer
Fantastic! Can you give an example and detail to back up your opinion?
Technical
25. 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.
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."
User-Submitted Answer
"Analytical procedures are such audit procedures that are performed to help the auditor form an opinion on the financial statements. They help to develop relationships between financial and non-financial data. Analytical procedures include ratio analysis, variance analysis, analytical review, inquiry, observation."
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Cindy Ramsey Reviewed the Above Answer
Great. What examples can you show?