Ernst & Young IT Audit Lead Interview Questions and Answers

Q1. Talk about yourswlf
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How you dealing conflict

It was good and easy also

Q1. Golden rules of Accounting
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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. 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. Internal audit questions p2p r2r
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Q1. How would you audit accounts receivable
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Accounts receivable audit involves verifying the existence, accuracy, and valuation of receivables.
• Confirming receivables with customers directly

• Reviewing aging reports to identify overdue accounts

• Testing the accuracy of recorded sales and receivables

• Analyzing allowance for doubtful accounts for adequacy

• Reconciling receivable balances with general ledger
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Q2. What if you don't receive the balance confirmation you've sent
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If balance confirmation is not received, follow up with the client and document all communication.
• Follow up with the client via email or phone call to request the confirmation again

• Document all communication and efforts made to obtain the confirmation

• Consider alternative methods of verification such as reviewing bank statements or conducting additional audit procedures

• Discuss the issue with the audit team and superviso...read more
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Q3. Journal entry for disposal of asset
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Journal entry for disposal of asset involves removing the asset from the balance sheet and recognizing any gain or loss.
• Debit the accumulated depreciation account to remove the asset's accumulated depreciation

• Debit the asset account to remove the asset's original cost

• Credit the asset disposal account for the asset's carrying amount

• Recognize any gain or loss by comparing the asset's carrying amount with the disposal pro...read more
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Q1. 1. Audit procedures for a. Revenue b. AP, AR c. Cash and cash equi.s d. Accrued Expenses 2. How to find Unrecorded Liabilities ( IMPORTANT ) 3. Materiality and it's type...read more
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Answering various audit-related questions for Senior Auditor position
• Audit procedures for different areas like revenue, AP, AR, cash and cash equivalents, and accrued expenses involve testing transactions, balances, and controls.

• To find unrecorded liabilities, auditors can review vendor invoices, bank statements, and contracts, and perform analytical procedures.

• Materiality in auditing refers to the significance of an i...read more
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Q1. Types of audit risks
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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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Q1. What is performance materiality?
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Performance materiality is the amount set by auditors at less than overall materiality to reduce the risk of material misstatements.
• Performance materiality is typically set at a lower threshold than overall materiality.

• It is used to determine the extent of audit procedures and sample sizes.

• It helps auditors focus on areas that are more likely to contain material misstatements.

• For example, if overall materiality is $100...read more
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Versent test- speaking, writing etc.

Q1. What is your preferred location?
Ans. 
I prefer working in a dynamic urban environment with easy access to public transportation and amenities.
• Prefer urban setting

• Easy access to public transportation

• Close to amenities like restaurants and shops
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