Describe a time when you had to make a difficult decision during an audit. How did you approach it?

Audit Program Manager Interview Questions

Sample answer to the question

During an audit for a manufacturing company, I had to make a difficult decision regarding a potential fraud case. I approached it by carefully gathering evidence and conducting interviews with relevant employees. After a thorough investigation, I presented my findings to the management team while maintaining confidentiality. We decided to involve law enforcement and terminate the employee involved. This decision was necessary to protect the company's reputation and financial stability.

A more solid answer

During an audit for a manufacturing company, I encountered a situation where there were significant discrepancies in the financial records. It was a complex issue that required careful analysis and decision-making. I gathered all relevant data and reviewed financial documents in detail. I also consulted with the auditing team to gain insights and different perspectives. After a thorough examination, I identified the source of the problem, which was a systemic error in the company's accounting software. In order to rectify the issue, I recommended an immediate halt to the use of the software and initiated a manual review of all financial transactions. This decision allowed us to identify and correct the discrepancies efficiently. I communicated the findings and proposed solution to the management team, emphasizing the need for a revised audit program and improved internal controls to prevent similar issues in the future.

Why this is a more solid answer:

The solid answer provides more specific details and demonstrates a stronger understanding of auditing and accounting skills. It also highlights the candidate's analytical and problem-solving abilities by describing their approach to gathering data and identifying the root cause of the problem. The mention of consulting with the auditing team and communicating the findings to the management team shows leadership and team management skills. However, the answer could be improved by discussing the communication methods used and providing more examples of effective communication.

An exceptional answer

During an audit for a manufacturing company, I encountered a situation where there were significant discrepancies in the financial records. It was a challenging decision because it involved potential fraud that could have serious legal and financial implications. I approached it by following a systematic process. Firstly, I ensured the preservation of evidence by securing all relevant documents and data. Then, I analyzed the data meticulously, comparing it with industry benchmarks and regulatory standards. To gain a deeper understanding of the situation, I conducted interviews with key individuals involved. This allowed me to gather valuable information and perspectives while maintaining confidentiality. After a comprehensive investigation, I presented my findings to the management team, providing them with a detailed report that outlined the potential fraud and its impact on the company. I recommended immediate actions, including involving law enforcement and terminating the employee responsible. I also suggested implementing stronger internal controls to prevent similar incidents in the future. The decision-making process was challenging but necessary to protect the company's reputation and financial stability. Throughout the entire process, I maintained open and transparent communication with all stakeholders, ensuring they were informed and involved in decision-making.

Why this is an exceptional answer:

The exceptional answer goes above and beyond by providing additional details on how the difficult decision was approached. It emphasizes the candidate's thoroughness in the investigation process, including securing evidence, conducting interviews, and analyzing data. The mention of comparing the data with industry benchmarks and involving law enforcement shows a strong understanding of industry-related regulatory standards. The candidate also highlights the importance of open and transparent communication, which aligns with the effective communication skills required for the role. However, the answer could be further improved by discussing any specific leadership and team management actions taken during this difficult decision-making process.

How to prepare for this question

Familiarize yourself with industry-related regulatory standards and stay updated on any changes.
Develop your analytical and problem-solving abilities by practicing critical thinking.
Enhance your leadership and team management skills by seeking opportunities to lead and collaborate with others.
Practice effective communication by presenting complex information clearly and concisely.
Prepare examples from your past experience that demonstrate your ability to make difficult decisions during audits.

What interviewers are evaluating

Auditing and accounting skills
Analytical and problem-solving abilities
Leadership and team management
Effective communication