How do you ensure the accuracy of financial records during an operational audit?

Sample answer to the question

To ensure the accuracy of financial records during an operational audit, I would start by thoroughly reviewing the company's financial statements, including balance sheets, income statements, and cash flow statements. I would also examine supporting documents such as bank statements, invoices, and receipts. Additionally, I would compare the financial data to the company's internal policies and procedures to ensure compliance. During the audit, I would conduct interviews with key personnel involved in the financial processes to gain a deeper understanding of the controls in place. I would also perform tests and analysis to verify the accuracy of transactions and calculations. Finally, I would document all findings and recommendations in a comprehensive audit report.

A more solid answer

To ensure the accuracy of financial records during an operational audit, I would apply my strong analytical and problem-solving skills to thoroughly assess the company's financial statements and supporting documents. I would pay close attention to detail, meticulously verifying transactions, calculations, and compliance with internal policies and procedures. Additionally, I would leverage my knowledge of auditing standards, such as Generally Accepted Accounting Principles (GAAP), to ensure the financial records accurately reflect the company's operations. Effective communication skills are crucial in this process, as I would collaborate with key personnel to gain insights and validate controls. Lastly, I would prepare comprehensive audit reports, clearly outlining my findings and recommendations to address any identified risks or inefficiencies.

Why this is a more solid answer:

The solid answer provides more specific details about how the candidate would ensure the accuracy of financial records during an operational audit. It highlights the candidate's strong analytical and problem-solving skills, attention to detail, knowledge of auditing standards, and communication skills, which are all important qualities for an Operational Auditor. However, the answer could benefit from additional examples or anecdotes from the candidate's past experience or projects to further strengthen their credibility.

An exceptional answer

Ensuring the accuracy of financial records during an operational audit requires a meticulous and thorough approach. Firstly, I would meticulously review the financial statements, examining each line item to validate its accuracy and compliance with accounting standards. To verify the integrity of the supporting documents, I would select a representative sample and perform detailed tests and analysis. This would involve matching invoices with payments, comparing bank statements with recorded transactions, and scrutinizing journal entries for appropriate documentation. Furthermore, I would assess the effectiveness of internal controls by gaining an in-depth understanding of the company's financial processes and interviewing key personnel involved. This would allow me to identify any existing or potential control weaknesses and propose recommendations for improvement. Throughout the audit, I would maintain open and proactive communication with stakeholders, ensuring that any discrepancies or issues are promptly addressed. Finally, I would compile my findings and recommendations in a comprehensive audit report, presenting them in a clear and concise manner that is easily understood by both financial and non-financial stakeholders.

Why this is an exceptional answer:

The exceptional answer goes above and beyond in describing the candidate's approach to ensuring the accuracy of financial records during an operational audit. It demonstrates a meticulous and thorough approach, highlighting specific actions and techniques the candidate would employ. The answer also emphasizes the importance of maintaining open communication and effectively presenting findings, showcasing the candidate's strong communication skills. Overall, the exceptional answer provides a comprehensive and detailed response that aligns well with the requirements of an Operational Auditor.

How to prepare for this question

Familiarize yourself with the company's financial statements and internal policies and procedures to better understand the context of the audit.
Stay updated with the latest auditing standards and best practices by reading professional literature and attending relevant seminars or webinars.
Practice analyzing financial data and performing calculations to ensure accuracy and efficiency.
Develop strong communication skills, both written and verbal, to effectively collaborate with stakeholders and present audit findings.
Seek opportunities to gain experience in operational auditing, such as internships or volunteer work, to demonstrate your practical knowledge and skills.

What interviewers are evaluating

Analytical and problem-solving skills
Attention to detail
Knowledge of auditing standards
Communication skills