Example response for question delving into Ethics, Auditing with the key points that need to be covered in an effective response. Customize this to your own experience with concrete examples and evidence

•  Context of the Audit: Provide a brief overview of the audit you were conducting, including the purpose, scope, and timeframe
•  Discovery of Fraud or Unethical Behavior: Explain how you came across the fraud or unethical behavior during the audit process
•  Actions Taken: Describe the immediate steps you took upon discovering the fraud or unethical behavior
•  Investigation & Documentation: Outline the investigative procedures you followed to gather evidence and document the fraud or unethical behavior
•  Reporting & Escalation: Explain how you reported the fraud or unethical behavior to the appropriate stakeholders, such as management or the audit committee
•  Resolution & Follow-up: Discuss the actions taken to address the fraud or unethical behavior, including any disciplinary measures or process improvements implemented
•  Lessons Learned: Reflect on the lessons learned from this experience and how it has influenced your approach to future audits

  What the Interviewer is trying to find out about you and your experiences through this question

•  Ethical awareness: To assess your ability to identify and address unethical behavior
•  Problem-solving skills: To evaluate your approach in handling fraud situations
•  Attention to detail: To gauge your ability to identify irregularities during audits
•  Integrity: To determine your commitment to upholding ethical standards

  How to avoid some common minefields when answering this question in order to not raise any red flags

•  Blaming others: Avoid blaming others or pointing fingers when discussing the discovery of fraud or unethical behavior. Instead, focus on your role in identifying and addressing the issue
•  Lack of due diligence: Avoid mentioning any lack of due diligence on your part during the audit process. Emphasize your thoroughness and attention to detail in uncovering the fraud or unethical behavior
•  Ignoring red flags: Do not admit to ignoring any red flags or signs of fraud or unethical behavior during the audit. Instead, highlight your ability to recognize and investigate suspicious activities
•  Lack of action: Avoid discussing any delays or inaction in addressing the fraud or unethical behavior. Focus on the immediate steps you took to report and rectify the situation
•  Lack of collaboration: Do not mention any lack of collaboration with colleagues or superiors when dealing with the fraud or unethical behavior. Instead, highlight your ability to work effectively with others to resolve the issue

 Related

  Other questions asked for the Auditor in Finance function. View details for the Auditor here

• What is your approach to evaluating internal controls?
• Explain the process you follow to gather evidence during an audit.
• Tell me about your experience in conducting financial audits.
• How do you ensure compliance with accounting standards and regulations?
• Describe a time when you identified a financial risk during an audit and how you addressed it.
• What auditing software or tools are you familiar with?
• How do you communicate audit findings to stakeholders?
• Describe a situation where you had to deal with a difficult client during an audit.
• What steps do you take to ensure the accuracy of financial statements?
• How do you stay updated with changes in accounting regulations and standards?
• Tell me about a time when you had to resolve a discrepancy in financial records.
• Describe a time when you had to work with a team to complete an audit project.
• How do you handle tight deadlines and pressure in the audit process?
• Explain the steps you take to ensure the confidentiality of audit information.
• What is your experience in conducting risk assessments for audit planning?
• Describe a time when you had to present audit findings to senior management.
• How do you ensure the efficiency and effectiveness of the audit process?
• Tell me about a time when you had to resolve a conflict within an audit team.
• How do you prioritize and manage multiple audit assignments?