What is your experience in liaising with external auditors during financial audits?

Sample answer to the question

I have significant experience in liaising with external auditors during financial audits. In my previous role as a senior revenue accountant, I worked closely with auditors to provide them with the necessary information and documentation. I prepared schedules and reconciliations to support the figures reported in the financial statements and answered any questions or inquiries they had. Additionally, I ensured that our revenue recognition practices were in line with accounting standards and regulations, and worked with auditors to address any potential issues or discrepancies that arose during the audit process.

A more solid answer

In my role as a senior revenue accountant with over 5 years of experience, I have extensive experience in liaising with external auditors during financial audits. I worked closely with auditors to ensure a smooth and efficient audit process. This involved providing them with all the necessary information and documentation they required, such as schedules, reconciliations, and supporting documentation for the figures reported in the financial statements. I was responsible for addressing any questions or inquiries they had and working collaboratively to address potential issues or discrepancies that arose during the audit. I also ensured that our revenue recognition practices were in line with accounting standards and regulations, and worked with auditors to proactively identify and resolve any gaps or areas for improvement. One example of this was when I identified a discrepancy in our revenue recognition methodology and worked with the auditors to implement a new process that improved accuracy and compliance. Throughout the audit process, I maintained open and transparent communication with the auditors, providing regular updates and resolving any issues promptly. As a result of my efforts, we received positive feedback from the auditors on our financial reporting and compliance with accounting standards.

Why this is a more solid answer:

This answer is more comprehensive than the basic answer because it provides specific details about the candidate's level of involvement in liaising with external auditors, the challenges they faced, and the outcomes of their collaboration. It also explicitly mentions their knowledge of accounting standards and regulations, as well as their adherence to revenue recognition practices and policies. However, the answer could be further improved by providing more examples and quantifiable results of their achievements in working with auditors during financial audits.

An exceptional answer

Having worked as a senior revenue accountant for over 5 years, I have extensive experience and a deep understanding of liaising with external auditors during financial audits. I have developed strong relationships with auditors, which has allowed for effective communication and collaboration throughout the audit process. I am well-versed in accounting standards and regulations, including GAAP and IFRS, and ensure strict adherence to these guidelines in our revenue recognition practices. During audits, I proactively prepare detailed schedules, reconciliations, and supporting documentation to support the figures reported in our financial statements. I also anticipate potential areas of concern or scrutiny and address them ahead of time, which has resulted in smooth and efficient audits. In one instance, I identified a discrepancy in our revenue recognition methodology while reviewing our processes during a financial audit. I immediately engaged with the auditors and implemented a new process that not only improved accuracy but also enhanced compliance with accounting standards. As a result, we received commendation from the auditors for our commitment to accurate financial reporting. I believe my strong knowledge of accounting standards, attention to detail, and proactive approach to the audit process make me a valuable asset in liaising with external auditors during financial audits.

Why this is an exceptional answer:

This answer is exceptional because it provides a deep understanding of the candidate's experience in liaising with external auditors during financial audits. It includes specific examples of their proactive approach in identifying discrepancies and implementing process improvements, resulting in positive feedback from auditors. The answer also highlights the candidate's strong knowledge of accounting standards and regulations and their commitment to accuracy and compliance in revenue recognition practices. It could be further strengthened by providing additional quantifiable results of the candidate's achievements and more details on their strong relationships with auditors.

How to prepare for this question

Familiarize yourself with relevant accounting standards and regulations, such as GAAP and IFRS, as well as any industry-specific guidelines that may apply.
Review your past experiences of working with auditors during financial audits and identify specific examples where you demonstrated your ability to provide necessary information and collaborate effectively.
Prepare a list of potential challenges or discrepancies that may arise during an audit and think about how you would address them.
Highlight any instances where you have proactively identified process improvements or implemented changes to enhance accuracy and compliance.
Emphasize your commitment to accuracy, attention to detail, and strict adherence to accounting standards and policies.
Practice explaining your experiences and achievements in liaising with auditors during financial audits, focusing on clear and concise communication.

What interviewers are evaluating

Relevant experience in liaising with external auditors
Knowledge of accounting standards and regulations
Ability to provide necessary information and documentation to auditors
Collaboration with auditors to address potential issues or discrepancies
Adherence to revenue recognition practices and policies