Tell me about a time when you faced a complex problem during an audit. How did you approach it?

Sample answer to the question

During a recent audit, I encountered a complex problem when I discovered discrepancies in the company's financial statements. To approach this issue, I first analyzed the data to understand the root cause of the problem. I conducted interviews with the finance team and reviewed supporting documents to gain more insights. I then collaborated with the team to develop a corrective action plan, which included updating the accounting system, improving reconciliation processes, and enhancing internal controls. I also communicated the findings and recommendations to senior management, highlighting the potential risks and the actions needed to address them. By taking a proactive approach and involving stakeholders at every step, we successfully resolved the complex problem and implemented measures to prevent future occurrences.

A more solid answer

During a complex problem in an audit, I encountered discrepancies in a company's financial statements. To approach this issue, I utilized my strong analytical skills by conducting a detailed review of the data, including bank statements, invoices, and transaction records. I identified that the discrepancies were due to incorrect recording of revenue and expenses. To resolve the problem, I collaborated with the finance team to identify the root cause and develop a corrective action plan. We implemented a new reconciliation process and enhanced internal controls to prevent similar issues in the future. Additionally, I communicated the findings and recommendations to senior management in a comprehensive report, highlighting the potential risks and the actions taken to address them. This solid answer demonstrates the candidate's expertise in analyzing complex problems, collaborating with colleagues, and effectively communicating audit findings and recommendations.

Why this is a more solid answer:

The solid answer provides more specific details and examples to support the candidate's competency in the evaluation areas. It includes specific actions taken to analyze the problem, collaborate with the team, and communicate the findings. The answer also highlights the candidate's analytical skills by mentioning the review of bank statements, invoices, and transaction records. However, it could be further improved by mentioning the specific outcomes or results achieved through the corrective action plan.

An exceptional answer

During a complex problem in an audit, I discovered significant discrepancies in the company's financial statements. To address this issue, I conducted a thorough analysis of the data, including reconciling various accounts and verifying the accuracy of transactions. Through this detailed review, I identified a pattern of fraudulent activities by a senior employee responsible for financial reporting. I immediately reported the findings to senior management and worked closely with the legal and HR departments to initiate an investigation. At the same time, I collaborated with the finance team to rectify the financial statements and implement enhanced controls to prevent future fraud. As a result of my proactive approach and diligent efforts, the company was able to recover the misappropriated funds and take appropriate disciplinary actions against the employee. This exceptional answer showcases the candidate's exemplary analytical skills, problem-solving abilities, collaboration and teamwork, and strong communication skills, especially in handling sensitive situations and ensuring the integrity of the audit process.

Why this is an exceptional answer:

The exceptional answer goes above and beyond in providing specific details and examples to demonstrate the candidate's expertise and competency in the evaluation areas. It includes a noteworthy accomplishment of uncovering and addressing fraudulent activities, showcasing the candidate's exceptional analytical skills and problem-solving abilities. The answer also highlights the candidate's collaboration and teamwork skills by mentioning the involvement of multiple departments in the investigation process. Moreover, it emphasizes the candidate's strong communication skills by highlighting the reporting of findings to senior management and the effective implementation of enhanced controls. The answer showcases the candidate's exceptional performance in handling complex problems during an audit.

How to prepare for this question

Reflect on past experiences when you faced complex problems during audits and think about the specific steps you took to approach and resolve them.
Highlight your analytical skills by providing examples of data analysis techniques used during audits.
Demonstrate your problem-solving abilities by explaining how you identified the root cause of the problem and developed appropriate solutions.
Emphasize your collaboration and teamwork skills by discussing how you involved and worked with other departments or team members during the problem-solving process.
Practice communicating your findings and recommendations in a clear and concise manner, as this is a crucial aspect of being an operational auditor.

What interviewers are evaluating

Analytical skills
Problem-solving skills
Collaboration and teamwork
Communication skills