Example response for question delving into Problem Solving, 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

•  Identifying the discrepancy: I was conducting an audit of a company's financial records and noticed a discrepancy in the accounts receivable balance
•  Investigating the root cause: I immediately began investigating the root cause of the discrepancy by reviewing invoices, payment records, and communication with customers
•  Identifying errors or fraud: During my investigation, I discovered that some invoices were recorded twice, resulting in an inflated accounts receivable balance
•  Collaborating with relevant stakeholders: I reached out to the accounts receivable team and discussed my findings with them, seeking their input and any additional information they could provide
•  Resolving the discrepancy: Together with the accounts receivable team, we identified the duplicate invoices and corrected the records accordingly
•  Implementing preventive measures: To prevent similar discrepancies in the future, I recommended implementing a more robust invoice review process and enhancing internal controls
•  Documenting the resolution: I documented the entire process, including the steps taken to resolve the discrepancy, the root cause analysis, and the preventive measures suggested
•  Reporting to management: Finally, I prepared a detailed report summarizing the discrepancy, the actions taken to resolve it, and the recommendations for improvement, which I presented to management

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

•  Problem-solving skills: Assessing the candidate's ability to identify and resolve discrepancies in financial records
•  Attention to detail: Evaluating the candidate's meticulousness in detecting and rectifying errors in financial data
•  Analytical thinking: Testing the candidate's capacity to analyze complex financial information and identify the root cause of discrepancies
•  Communication skills: Assessing the candidate's ability to effectively communicate and collaborate with relevant stakeholders to resolve financial discrepancies

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

•  Lack of attention to detail: Not being able to provide specific details or examples of the discrepancy or how it was resolved
•  Inability to work under pressure: Showing signs of stress or panic when discussing the discrepancy or the steps taken to resolve it
•  Lack of problem-solving skills: Not being able to explain the steps taken to identify and resolve the discrepancy or relying heavily on others for assistance
•  Lack of accountability: Not taking ownership of the discrepancy or blaming others for the error
•  Poor communication skills: Struggling to clearly articulate the issue, the steps taken to resolve it, or the outcome of the resolution

 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.
• How do you stay updated with changes in accounting regulations and standards?
• 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?
• Tell me about a time when you discovered fraud or unethical behavior during an audit.
• What steps do you take to ensure the accuracy of financial statements?