Ernst & Young Audit Consultant Interview Questions and Answers

In 5 years, I see myself as a senior internal auditor leading a team and contributing to the strategic decision-making process.

• Leading a team of auditors and providing guidance and mentorship

• Contributing to the development and implementation of audit strategies

• Playing a key role in the decision-making process by providing valuable insights and recommendations

• Continuously improving my skills and knowledge through profes...read more

I have 5 years of experience as an Internal Auditor.

• I have worked as an Internal Auditor for 5 years.

• During my experience, I have conducted financial audits, operational audits, and compliance audits.

• I have experience in analyzing financial statements, identifying risks, and recommending improvements.

• I have worked with cross-functional teams to implement audit recommendations and ensure compliance.

• I have also conducted...read more

Internal audit practice involves evaluating and improving the effectiveness of an organization's risk management, control, and governance processes.

• Internal audit is an independent and objective assurance activity

• It helps organizations achieve their objectives by bringing a systematic and disciplined approach to evaluate and improve processes

• Internal auditors assess risks, test controls, and provide recommendations for...read more

Audit is a systematic and independent examination of financial statements, records, operations, and performance of an organization.

• Audit is a process of evaluating an organization's financial and operational activities.

• It involves examining financial statements, records, and transactions to ensure accuracy and compliance with laws and regulations.

• Auditors provide an independent opinion on the fairness and reliability o...read more

Bank Reconciliation Statement is a document that matches the bank balance with the company's balance.

• It is used to identify any discrepancies between the two balances.

• It includes items such as outstanding checks, deposits in transit, and bank fees.

• A practical example would be comparing the company's records of deposits and withdrawals with the bank statement to ensure accuracy.

• Any differences found are then investigate...read more

When an asset increases, it must be debited.

• Debit increases assets and credit decreases assets.

• Assets include cash, accounts receivable, inventory, property, and equipment.

• For example, if a company purchases a new machine, the asset account for machinery will be debited to increase it.

• This is based on the accounting equation: Assets = Liabilities + Equity.

Equity decreases must be debited.

• Equity is a credit balance account, so when it decreases, it must be debited to reduce the credit balance.

• Debiting equity reduces the owner's or shareholder's equity in the business.

• Examples of equity decreasing transactions include paying dividends, recording losses, or issuing treasury stock.

Operating expenses are costs incurred in running a business, while COGS are expenses directly related to producing goods or services.

• Operating expenses include salaries, rent, utilities, and marketing expenses.

• COGS include the cost of raw materials, labor, and manufacturing overhead.

• Operating expenses are recorded on the income statement, while COGS is deducted from revenue to calculate gross profit.

• Operating expenses ...read more

Petty cash book is used for small cash transactions while cash book is used for all cash transactions.

• Petty cash book is used for small cash transactions like buying office supplies or paying for small expenses.

• Cash book is used for all cash transactions including receipts and payments.

• Petty cash book is maintained by a petty cashier while cash book is maintained by the main cashier.

• Petty cash book is usually a single ...read more