JUNIOR LEVEL

Can you provide an example of a financial discrepancy you found and how you resolved it?

Sample answer to the question

Sure! In my previous position as a Junior Financial Analyst at ABC Company, I came across a financial discrepancy while reviewing the accounts payable records. I noticed that a vendor had been overpaid for a specific product by $10,000. To resolve this, I immediately reached out to the vendor's accounts payable department to notify them of the discrepancy. We scheduled a meeting to discuss the issue in detail and found that there was a data entry error on their end. We worked together to rectify the error and arrange for the return of the overpaid amount. I also updated our internal financial records to ensure accurate reporting. This experience allowed me to develop my attention to detail and problem-solving skills, as well as my ability to communicate effectively with stakeholders.

A more solid answer

Absolutely! During my time as a Junior Financial Analyst at ABC Company, I encountered a financial discrepancy while conducting an audit of payments to vendors. I noticed a significant pricing discrepancy with one of our key suppliers. Upon further investigation, I discovered that the supplier had been invoicing us at a higher rate than initially agreed upon in the contract. This resulted in an overpayment of $50,000 over the course of six months. To address this issue, I scheduled a meeting with the supplier's accounts payable team to discuss the discrepancy. I presented them with the evidence I had gathered, including the original contract and previous invoices. After reviewing the information, they acknowledged the mistake and agreed to rectify the situation. We negotiated a revised contract with the correct pricing and the supplier agreed to credit us for the overpaid amount. I promptly updated our financial records and shared the findings with our accounts payable and finance departments. This experience highlighted my analytical skills in identifying financial discrepancies, my problem-solving abilities in working with the supplier to reach a resolution, and my communication skills in conveying complex information to stakeholders.

Why this is a more solid answer:

The solid answer expands on the basic answer by providing more specific details about the financial discrepancy, including the amount and duration of the overpayment. It also demonstrates the candidate's proficiency in financial processes and data analysis by mentioning the review of the original contract and previous invoices. The answer further highlights the impact of the resolution by discussing the negotiation of a revised contract and the communication of findings to relevant departments. However, the answer could be further improved by mentioning the candidate's ability to collaborate with other departments and maintain accurate records of the audit.

An exceptional answer

Certainly! In my previous role as a Junior Financial Analyst at ABC Company, I encountered a significant financial discrepancy that involved a duplicate payment to a vendor. While reconciling the accounts payable records, I noticed that we had double-paid an invoice amounting to $100,000. To address this issue, I immediately contacted the vendor's accounts payable team to inform them of the discrepancy. They confirmed that they had received the duplicate payment and expressed gratitude for bringing it to their attention. We collaborated closely to determine the best course of action for resolving the discrepancy. I worked with our accounts payable department to initiate the process of recouping the overpaid amount, which involved drafting a formal letter requesting the return of the funds. Additionally, I closely monitored the progress of the recovery process and maintained detailed records of all communications and actions taken. After a few weeks of consistent follow-up, we successfully recovered the full amount and updated our financial records accordingly. This experience showcased my ability to identify and rectify financial discrepancies, my strong attention to detail in monitoring the recovery process, and my effective communication skills in liaising with vendors and internal departments.

Why this is an exceptional answer:

The exceptional answer provides a detailed account of a financial discrepancy involving a duplicate payment, demonstrating the candidate's strong analytical skills and attention to detail. It also highlights the candidate's ability to collaborate with other departments and maintain accurate records of the recovery process. The answer goes beyond simply resolving the discrepancy by showcasing the candidate's consistent follow-up and monitoring of the recovery process. Furthermore, it emphasizes the candidate's effective communication skills in liaising with both the vendor and internal departments. The answer effectively covers all the evaluation areas and aligns with the responsibilities outlined in the job description.

How to prepare for this question

Familiarize yourself with financial processes, including accounts payable and receivable, to better understand common discrepancies that may arise.
Develop strong analytical and problem-solving skills, as these will be essential in identifying and resolving financial discrepancies.
Practice effective communication skills, both in writing and verbally, to facilitate collaboration with vendors and other internal departments.
Become proficient in using Microsoft Office Suite, especially Excel, as it is commonly used for data analysis and financial reporting.
Pay careful attention to detail when reviewing financial records, as discrepancies can often be subtle and require meticulous analysis.
Consider seeking additional certifications or courses in financial auditing or related fields to enhance your knowledge and qualifications.

What interviewers are evaluating

Analytical skills
Problem-solving
Communication skills
Financial reporting
Attention to detail