INTERMEDIATE LEVEL

Give an example of a time when you had to use your problem-solving skills to address an issue during an audit.

Sample answer to the question

During an audit, I encountered an issue where the client's financial records were not balancing. To address this problem, I first analyzed the records to identify any inconsistencies. After thorough investigation, I discovered that there was a data entry error that caused the imbalance. I immediately brought this to the attention of the client and worked collaboratively with their accounting team to rectify the error. We conducted a detailed review of the affected transactions, corrected the entries, and rechecked the balances. Finally, I ensured that the necessary adjustments were made to the financial statements and provided a detailed explanation of the issue and the corrective actions taken in the audit report.

A more solid answer

During a financial audit, I encountered a complex issue related to revenue recognition. The client had recently implemented a new accounting system, and there were discrepancies between their recorded revenue and the actual cash inflows. To address this issue, I first conducted a thorough analysis of the revenue recognition process, including reviewing contracts and supporting documents. I identified several gaps in their system, such as improper application of revenue recognition criteria. I collaborated with the client's finance team to develop a comprehensive corrective action plan. We updated the accounting system to ensure proper revenue recognition and implemented additional control measures to prevent similar issues in the future. I also provided training to the client's staff on the correct application of revenue recognition principles. As a result, the client's financial reporting became more accurate and compliant with GAAP, and they were able to make informed business decisions based on reliable financial information.

Why this is a more solid answer:

The solid answer provides a more comprehensive and detailed response, addressing the evaluation areas mentioned in the job description. It emphasizes the candidate's problem-solving skills, analytical abilities, attention to detail, and collaboration. It also demonstrates their knowledge of GAAP and accounting systems. However, the answer could be further improved by including specific examples of how the candidate applied their problem-solving skills and how they effectively collaborated with the client's team.

An exceptional answer

During an audit engagement, I faced a significant challenge involving inventory valuation. The client, a manufacturing company, had a complex inventory management system, and discrepancies were identified between the physical count and the recorded inventory balances. To resolve this issue, I performed a thorough analysis of the inventory records, including reviewing purchase orders, sales records, and production data. I discovered that there were significant errors in the client's inventory tracking system, resulting in inaccurate valuation and potential misstatements in the financial statements. I collaborated closely with the client's operations and IT teams to rectify the situation. We conducted physical recounts of the inventory, performed data reconciliations, and tested the integrity of the inventory management system. Through this collaborative effort, we successfully identified and corrected the errors in the system and adjusted the inventory balances accordingly. I also recommended process improvements to enhance the accuracy of the inventory tracking system and prevent future discrepancies. As a result, the client's financial statements were more reliable, and they were able to make informed business decisions based on accurate inventory information.

Why this is an exceptional answer:

The exceptional answer provides a highly detailed and comprehensive response, showcasing the candidate's expertise in problem-solving, analytical skills, attention to detail, and collaboration. It includes specific examples of the challenges faced, the actions taken to address the issue, and the impact of the candidate's problem-solving skills on the client's financial reporting. The answer also demonstrates the candidate's ability to identify system errors and provide recommendations for process improvements. The only area for improvement would be to further highlight the candidate's ability to work under pressure and meet tight deadlines, as mentioned in the job description.

How to prepare for this question

Familiarize yourself with different types of issues commonly faced during audits, such as revenue recognition, inventory valuation, or internal control weaknesses.
Prepare examples of how you have successfully applied problem-solving skills in previous audit engagements, highlighting your ability to analyze complex situations and identify root causes.
Demonstrate your attention to detail by discussing how you have meticulously reviewed financial records and supporting documents to identify discrepancies.
Highlight your collaborative nature by sharing experiences where you worked effectively with client teams or colleagues to address audit issues and implement corrective actions.
Stay updated on auditing standards, regulations, and industry best practices to showcase your knowledge and commitment to professional development.

What interviewers are evaluating

Analytical Skills
Problem-Solving Skills
Attention to Detail
Collaboration