INTERMEDIATE LEVEL

Can you provide an example of a business process or internal control enhancement recommendation you made in a previous audit?

Sample answer to the question

In a previous audit, I identified a business process enhancement recommendation related to inventory management. During the audit, I noticed that the client's inventory tracking system was outdated and manual, leading to inefficiencies and inaccuracies in inventory records. I suggested implementing a barcode scanning system that would automate the inventory tracking process and improve accuracy. This recommendation would not only streamline the client's inventory management, but also enhance their internal control by reducing the risk of errors and discrepancies in inventory records.

A more solid answer

In a previous audit, I encountered a client with an outdated and manual inventory tracking system that posed significant risks to accuracy and efficiency. To address this issue, I conducted a thorough analysis of the current process, identified the key pain points, and proposed a comprehensive recommendation. My recommendation involved implementing a barcode scanning system integrated with the client's existing inventory management software. This solution not only automated the tracking process but also provided real-time inventory information, improving accuracy and efficiency while reducing the risk of errors and discrepancies. I presented the recommendation to the client's management team, explaining the benefits and potential cost savings resulting from the proposed enhancement. The client was highly receptive to the suggestion and decided to proceed with the implementation, appreciating the value it would bring to their business operations and internal control.

Why this is a more solid answer:

The solid answer provides a more comprehensive explanation of the business process enhancement recommendation. It highlights the risks associated with the outdated system and the approach taken to analyze and propose a solution. The answer also emphasizes the impact of the recommendation, such as improving accuracy, efficiency, and reducing errors. Furthermore, it mentions presenting the recommendation to the client's management team and their positive response. However, the answer could further elaborate on how the recommendation aligns with the job requirements and the candidate's skills, such as their analytical, problem-solving, and communication abilities.

An exceptional answer

During a financial audit, I identified a significant internal control weakness in the client's cash disbursement process. The client relied heavily on manual approvals and lacked segregation of duties, increasing the risk of fraudulent activities and errors. To address this issue, I recommended implementing a computerized approval workflow system with built-in segregation of duties controls. I collaborated with the client's IT department to assess existing systems and evaluated various workflow software options. After careful analysis, I presented a detailed implementation plan, outlining the steps, timeline, and potential cost savings of the recommendation. The client agreed with the proposal, and we successfully implemented the new system, significantly enhancing their internal control and mitigating the risks associated with cash disbursements. As a result, the client experienced improved efficiency, reduced errors, and increased confidence in their financial operations.

Why this is an exceptional answer:

The exceptional answer provides a comprehensive example of an internal control enhancement recommendation related to the cash disbursement process. It highlights the specific weakness in manual approvals and lack of segregation of duties, which aligns with the job requirements and the candidate's knowledge of auditing standards. The answer also emphasizes the candidate's involvement in assessing existing systems, evaluating software options, and presenting a detailed implementation plan to the client. Additionally, it mentions the positive outcomes of the recommendation, such as improved efficiency, reduced errors, and increased confidence in financial operations. Overall, the answer demonstrates the candidate's expertise in evaluating and improving business processes and internal controls.

How to prepare for this question

Familiarize yourself with common business process and internal control enhancement recommendations in auditing.
Review case studies or examples related to inventory management, cash disbursement, and other relevant processes.
Develop a thorough understanding of auditing standards and principles.
Highlight your analytical and problem-solving abilities in previous audit experiences.
Practice explaining your recommendations with clear communication and emphasis on the benefits and impact.

What interviewers are evaluating

Analytical skills
Problem-solving skills
Verbal and written communication skills
Attention to detail
Organizational and project management abilities
Knowledge of auditing standards
Ability to make recommendations
Ability to evaluate business processes and internal controls