Can you provide an example of when you identified a discrepancy in financial records and how you resolved it?

Sample answer to the question

In my previous role as a Fund Accountant, I encountered a discrepancy in the financial records when reconciling portfolio transactions. Upon investigating further, I discovered that a trade had been incorrectly recorded, leading to a discrepancy in the cash flow. To resolve this, I immediately reached out to the broker to request a correction. After providing supporting documentation and explaining the issue, the broker acknowledged the error and rectified it. I then updated the financial records accordingly and ensured that the correct information was reflected in the portfolio statement. This experience taught me the importance of careful attention to detail and effective communication in resolving financial discrepancies.

A more solid answer

During my time as a Fund Accountant, I encountered a discrepancy in the financial records when reconciling portfolio transactions. While reviewing the cash flows, I noticed that the cash received from a particular trade didn't match the recorded amount. To investigate further, I analyzed the trade tickets, trade confirmations, and trade settlement instructions. After thoroughly comparing the documents, I identified that an incorrect price was used for the trade, resulting in the discrepancy. To resolve this, I immediately contacted the broker who executed the trade and explained the issue. I provided them with the supporting documents to validate my findings. The broker acknowledged the mistake and promptly issued a corrected trade confirmation. I updated the financial records to reflect the correct cash flow and completed the reconciliation process. This experience demonstrated my attention to detail, analytical skills, and problem-solving abilities in identifying and resolving financial discrepancies.

Why this is a more solid answer:

This is a solid answer as it provides specific details of the discrepancy, the candidate's actions in investigating and resolving the issue, and the impact of the resolution. It demonstrates the candidate's attention to detail, analytical skills, and problem-solving abilities. However, it can be further improved by elaborating on the communication with the broker and the collaboration with other stakeholders to ensure accurate financial reporting.

An exceptional answer

As a meticulous Fund Accountant, I encountered a discrepancy in the financial records while reconciling portfolio transactions. Upon noticing that the cash flows didn't align with the recorded amounts, I delved deeper into the issue. I reviewed the trade execution process, including the trade tickets, trade confirmations, and trade settlement instructions. After a comprehensive analysis, I discovered that the issue stemmed from an incorrect trade settlement date entered by the trading desk. This led to the misalignment of the cash flows. To resolve this, I immediately initiated a conversation with the trading desk, highlighting the discrepancy and providing them with the supporting evidence. Working collaboratively, we identified the root cause and implemented preventive measures to avoid similar issues in the future. The trading desk promptly corrected the trade settlement date, and I meticulously updated the financial records to reflect the accurate cash flows. The timely resolution of this discrepancy ensured the integrity of financial reporting, demonstrating my acute attention to detail, analytical prowess, effective communication, and commitment to excellence in financial management.

Why this is an exceptional answer:

This is an exceptional answer as it provides a comprehensive example of the discrepancy in financial records, the candidate's meticulous investigation to uncover the root cause, the collaboration with stakeholders to resolve the issue and implement preventive measures, and the impact of the resolution on financial reporting integrity. It showcases the candidate's strong attention to detail, analytical prowess, effective communication, and commitment to excellence. This answer highlights the candidate's ability to go above and beyond the basic requirements of the role.

How to prepare for this question

Reflect on any past experiences where you encountered discrepancies in financial records and resolved them.
Consider the specific steps you took to investigate and resolve the discrepancies.
Highlight your attention to detail, analytical skills, problem-solving abilities, and effective communication throughout the process.
Discuss the impact of your resolution on financial reporting accuracy and integrity.
Demonstrate your ability to collaborate with relevant stakeholders to identify and address the root cause of the discrepancy.

What interviewers are evaluating

Attention to detail
Analytical skills
Problem-solving skills
Communication skills
Financial reporting