Can you provide an example of a time when you identified and resolved discrepancies in financial statements?

Sample answer to the question

In my previous role as a Senior Accountant at XYZ Company, I encountered a discrepancy in the financial statements during the monthly account reconciliation process. Upon further investigation, I discovered that a transaction was recorded twice, leading to an inflated revenue figure. To resolve this issue, I immediately reached out to the relevant department and provided them with the necessary documentation to rectify the error. I also communicated with the CFO to inform them about the discrepancy and the steps taken to resolve it. As a result, the correct figures were reflected in the financial statements for that month. This experience taught me the importance of meticulousness in reviewing financial statements, and I developed a keen eye for spotting discrepancies moving forward.

A more solid answer

During my tenure as a Senior Accountant at XYZ Company, I encountered a significant discrepancy in the financial statements during the monthly account reconciliation process. While reviewing the revenue figures, I noticed a significant variance compared to the previous month. This raised a red flag, prompting me to dig deeper into the underlying transactions. After careful analysis, I discovered that a sales transaction had been recorded twice, resulting in the overstatement of revenue. To resolve this, I immediately reached out to the Sales Department and provided them with the supporting documentation to rectify the error. Additionally, I collaborated with the CFO to discuss the impact on the financial statements and actions needed to correct it moving forward. As a result of my diligence, the issue was promptly resolved, and accurate financial statements were produced. This experience reinforced the importance of maintaining a keen eye for detail and conducting comprehensive reviews of financial documentation.

Why this is a more solid answer:

This answer provides a more comprehensive example that demonstrates the candidate's analytical skills, attention to detail, and problem-solving abilities. It includes specific details about the discrepancy, the steps taken to resolve it, and the collaboration with relevant stakeholders. However, it could still be improved by highlighting the impact of the candidate's actions and showcasing their ability to lead and manage confidential data.

An exceptional answer

As a Senior Accountant at XYZ Company, I encountered a complex discrepancy in the financial statements that required a deep understanding of accounting principles and a strategic approach. During the monthly account reconciliation process, I noticed a discrepancy in the accounts receivable balance, which seemed unusually high compared to the previous month. To investigate further, I reviewed the supporting documentation, including invoices, payment records, and customer contracts. Through meticulous analysis, I identified a systematic error in the billing system that was causing certain invoices to be double-counted, resulting in an inaccurate accounts receivable balance. Understanding the sensitivity and confidentiality of the matter, I immediately notified the CFO and collaborated with IT and the Billing Department to rectify the issue. Together, we developed a solution to streamline the billing process and implemented additional checks and balances to prevent future discrepancies. This resolution not only restored the accuracy of the financial statements but also resulted in improved operational efficiency and client satisfaction. This experience reinforced my ability to navigate complex financial systems, lead cross-functional teams, and maintain a high level of integrity when handling sensitive financial data.

Why this is an exceptional answer:

This answer goes above and beyond by providing a detailed and complex example of identifying and resolving a discrepancy in financial statements. It showcases the candidate's ability to apply their analytical skills, attention to detail, problem-solving abilities, and leadership qualities. The candidate demonstrates their ability to collaborate with various stakeholders and their understanding of the importance of confidentiality. Additionally, the answer highlights the impact of the candidate's actions on operational efficiency and client satisfaction.

How to prepare for this question

Review and familiarize yourself with relevant accounting principles, such as Generally Accepted Accounting Principles (GAAP).
Develop a strong understanding of financial statements and their components.
Prepare examples of previous experiences where you identified and resolved discrepancies in financial statements, highlighting the challenges faced and the actions taken.
Demonstrate your analytical and problem-solving skills by discussing any relevant certifications or training you have completed.
Emphasize your ability to collaborate and communicate effectively with cross-functional teams and stakeholders.
Highlight your attention to detail and accuracy in handling financial data.
Discuss any experience you have in streamlining financial processes or implementing controls to prevent future discrepancies.

What interviewers are evaluating

Analytical skills
Attention to detail
Problem-solving