SENIOR LEVEL

Tell us about a time when you identified areas for improvement in internal controls. How did you address those issues?

Sample answer to the question

In my previous role as an Audit Coordinator, I identified areas for improvement in internal controls during an audit of a manufacturing company. The company had weak controls in their inventory management process, which led to discrepancies and inaccuracies in their inventory records. To address this issue, I proposed implementing a barcode scanning system to track and record inventory movements accurately. I worked closely with the IT department and external vendors to select and implement the software solution. Additionally, I developed training materials and conducted training sessions for the employees to ensure a smooth transition to the new system. As a result of these efforts, the company saw a significant reduction in inventory discrepancies and improved accuracy in their financial statements.

A more solid answer

During my time as an Audit Coordinator at XYZ Company, I encountered a situation where I identified areas for improvement in internal controls related to procurement processes. The company had a decentralized procurement system, leading to inconsistent practices and potential risks. To address this, I conducted a thorough analysis of the existing procurement processes and identified key areas for improvement, such as implementing centralized purchasing and standardizing approval workflows. I presented my findings to the management team and proposed a detailed action plan to address the identified issues. Working closely with cross-functional teams, I coordinated the implementation of the new centralized procurement system, including defining roles and responsibilities, designing standardized workflows, and providing training to employees. As a result, the company experienced greater control and transparency in procurement activities, reduced risks of fraud, and improved cost savings through better negotiation with suppliers.

Why this is a more solid answer:

The solid answer provides a more detailed example of the candidate identifying areas for improvement in internal controls and addressing them. It highlights their analytical skills in conducting an analysis of the existing processes, as well as their problem-solving abilities in proposing and implementing solutions. The answer also demonstrates their ability to manage and prioritize multiple projects and deadlines, as they coordinated the implementation of the new procurement system. However, it could be further improved by providing specific details about the outcomes and results achieved from the implemented changes.

An exceptional answer

In my previous role as an Audit Coordinator at ABC Corporation, I played a key role in identifying areas for improvement in internal controls during an audit of the financial reporting process. Through a comprehensive review, I found that the company lacked proper segregation of duties, which increased the risk of fraud. To address this issue, I developed and implemented a new segregation of duties matrix, clearly defining roles and responsibilities and ensuring that critical tasks were appropriately segregated. I collaborated with cross-functional teams, including HR and IT, to update job descriptions, modify access controls, and conduct training sessions to create awareness and adoption of the new controls. As a result of these efforts, the company significantly reduced the risk of fraud and received positive feedback from external auditors. The implemented controls not only enhanced the integrity of financial reporting but also improved the overall efficiency of the process.

Why this is an exceptional answer:

The exceptional answer provides a more comprehensive and impactful example of the candidate identifying areas for improvement in internal controls and addressing them. It showcases their expertise in the area of internal controls and highlights their ability to proactively identify risks and propose effective solutions. The answer also demonstrates their strong collaboration skills in working with cross-functional teams and their ability to drive change and achieve positive outcomes. Additionally, it emphasizes the candidate's attention to detail and commitment to high-quality work, as evidenced by the successful implementation of the new segregation of duties controls. Overall, the answer showcases the candidate's qualifications and suitability for the Audit Coordinator role.

How to prepare for this question

Familiarize yourself with auditing standards and best practices in internal controls
Reflect on your past experiences where you identified areas for improvement in internal controls and how you addressed them
Prepare specific examples that demonstrate your analytical and problem-solving abilities in the context of internal controls
Highlight your communication and interpersonal skills by explaining how you collaborated with cross-functional teams to implement effective controls
Be prepared to discuss the outcomes and results achieved from your efforts in improving internal controls

What interviewers are evaluating

Analytical and problem-solving abilities
Attention to detail and commitment to high-quality work
Ability to manage and prioritize multiple projects and deadlines
Effective communication and interpersonal skills