Tell us about a time when you have identified a significant risk during an operational audit and how you addressed it.

Sample answer to the question

During an operational audit at my previous company, I identified a significant risk related to inventory management. Upon further investigation, I discovered that there were no proper controls in place to track and reconcile the inventory, leading to potential inaccuracies and losses. To address this, I immediately brought the issue to the attention of the management team and proposed implementing a robust inventory management system. I worked closely with the IT department to select and customize a software solution that would streamline the inventory tracking process and improve accuracy. Additionally, I developed comprehensive training materials and conducted training sessions for the staff to ensure they understood how to properly use the new system. As a result, the company was able to minimize inventory discrepancies and increase overall efficiency in inventory management.

A more solid answer

During an operational audit at my previous company, I utilized my strong analytical and problem-solving skills to identify a significant risk in the inventory management process. Through data analysis, I discovered that the lack of proper controls and reconciliations posed a potential risk for inaccuracies and losses. To address this issue, I proactively communicated my findings to the management team and proposed the implementation of a robust inventory management system. Working collaboratively with the IT department, I conducted thorough research to select the most suitable software solution, considering factors such as cost, functionality, and compatibility. Once the system was selected, I led the customization process to ensure it aligned with the company's specific needs. To facilitate seamless adoption, I developed comprehensive training materials and conducted training sessions for the staff, empowering them to effectively utilize the new system. As a result, the company experienced a significant reduction in inventory discrepancies, improved accuracy, and enhanced efficiency in the overall inventory management process.

Why this is a more solid answer:

The solid answer provides more detail about how the candidate utilized their skills and qualifications to identify and address a significant risk during an operational audit. It specifically mentions the candidate's strong analytical and problem-solving skills, as well as their ability to collaborate with different departments and lead process improvement initiatives. However, it can still be improved by incorporating specific examples and outcomes of the implemented inventory management system.

An exceptional answer

During an operational audit at my previous company, I demonstrated my strong analytical and problem-solving skills by identifying a significant risk in the inventory management process. Through meticulous data analysis, I identified a lack of adequate controls and reconciliations, which posed a potential risk for inaccuracies and losses. Understanding the importance of addressing this issue promptly, I initiated a close collaboration with the management team and proposed the implementation of a robust inventory management system. Drawing upon my proficiency in audit software and Microsoft Office Suite, I conducted comprehensive research to identify potential solutions. After evaluating multiple options, I presented a detailed analysis to the management team, highlighting the software that best met our requirements in terms of functionality, cost, and compatibility. Once the software was selected, I meticulously oversaw the customization process, ensuring seamless integration with our existing systems and processes while addressing specific business needs. Additionally, I took the initiative to create detailed standard operating procedures (SOPs) to guide the implementation and utilization of the new system. Recognizing the importance of proper training, I developed a comprehensive training program and conducted training sessions for the staff, empowering them to leverage the software's full potential. As a result, the company saw a significant reduction in inventory discrepancies, leading to improved accuracy in financial reporting and enhanced efficiency in the overall inventory management process.

Why this is an exceptional answer:

The exceptional answer provides a comprehensive and detailed account of how the candidate identified and addressed a significant risk during an operational audit. It demonstrates a high level of competency in the required skills and qualifications mentioned in the job description, such as strong analytical and problem-solving skills, proficiency in audit software and Microsoft Office Suite, and excellent communication and report-writing skills. It also highlights the candidate's ability to work independently and as part of a team, as well as their organizational skills with attention to detail. The answer incorporates specific examples of the candidate's research, analysis, collaboration with the management team, and implementation of a customized inventory management system.

How to prepare for this question

Familiarize yourself with various operational auditing frameworks and methodologies, such as COSO and COBIT.
Highlight your experience and proficiency in using audit software and Microsoft Office Suite.
Prepare specific examples from your previous work experience where you identified and addressed significant risks during operational audits.
Emphasize your ability to collaborate with different stakeholders, such as management and IT departments, to implement process improvements.
Demonstrate your attention to detail by sharing examples of how you maintained accurate documentation and conducted thorough analyses during operational audits.

What interviewers are evaluating

Strong analytical and problem-solving skills
Excellent communication and report-writing skills
Proficiency in audit software and Microsoft Office Suite
Ability to work independently and as part of a team
Strong organizational skills with attention to detail