Ernst & Young Audit Manager Interview Questions and Answers

Q1. How do you account for tangible assets
Ans. 
Tangible assets are physical assets with a finite monetary value that can be seen and touched.
• Tangible assets are recorded on the balance sheet at their original cost, less accumulated depreciation.

• Depreciation is calculated to allocate the cost of the asset over its useful life.

• Examples of tangible assets include buildings, machinery, equipment, vehicles, and land.

• Regular physical inventory checks are conducted to ens
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Q1. Golden rules of Accounting
Ans. 
The golden rules of accounting are basic principles that guide the process of recording financial transactions.
• The golden rules include: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains.

• These rules help ensure that financial transactions are accurately recorded and classified in the accounting system.

• For example, when a company receives ...read more
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Q1. Tell us your major audit observations
Ans. 
Major audit observations include inadequate documentation, lack of segregation of duties, and insufficient controls.
• Inadequate documentation of transactions and processes

• Lack of segregation of duties leading to potential fraud risks

• Insufficient controls over financial reporting

• Non-compliance with regulatory requirements

• Weaknesses in IT security measures
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Q2. What checks shall be done in P2P Audit
Ans. 
Checks in P2P Audit include vendor verification, invoice accuracy, approval process review, duplicate payments detection, and compliance with policies.
• Verify vendor information for accuracy and legitimacy

• Ensure invoices match purchase orders and goods received

• Review approval process to confirm proper authorization

• Detect and prevent duplicate payments

• Check for compliance with company policies and regulations
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Q1. Why do you want to work for Blackrock?
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Q2. What is a recent news article you read?
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Q1. Why internal audit?
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Internal audit allows me to utilize my analytical skills to identify risks, improve processes, and add value to the organization.
• Opportunity to identify and mitigate risks within the organization

• Improving processes and operational efficiency

• Contributing to the overall success and growth of the organization

• Utilizing analytical skills to provide valuable insights

• Continuous learning and development in a dynamic environmen
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Q2. What is a weakness of yours?
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Q1. About the oil and gas business
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Q2. About downstream oil business
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Q1. Tell me about your self?
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Q2. Position and salary expectation?
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Q1. What was the recent audit issue you have come across?
Ans. 
Recently discovered an issue with inaccurate financial reporting due to improper revenue recognition.
• Identified discrepancies in revenue recognition methods used by the finance team

• Conducted detailed analysis of financial statements and supporting documentation

• Collaborated with finance team to implement corrective actions and improve controls
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Q2. How do you deal with the person not meeting expectations at work
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Audit of financial statements

Q1. Audit & Accounting technical knowledge
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Q1. Managerial skills
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Q1. Types of audit risks
Ans. 
Audit risks include inherent risk, control risk, and detection risk.
• Inherent risk: risk of material misstatement without considering internal controls

• Control risk: risk that internal controls will not prevent or detect material misstatements

• Detection risk: risk that audit procedures will not detect material misstatements

• Examples: Inherent risk - complexity of transactions, Control risk - ineffective segregation of duti
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Q2. What is materiality and PM?
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Materiality and PM refer to the concept of significance in auditing, with materiality being the threshold for financial information to be considered important and PM being the performance materiality set below materiality.
• Materiality is the threshold at which financial information becomes significant enough to influence the decisions of users of the financial statements.

• Performance materiality (PM) is set below materia...read more
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Q1. Bank procedures
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1 hour aptitude test

Topic was work from home or work from office

Q1. Introduction, walk me through resume
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