Milliman Senior Accounts Payable Executive Interview Questions and Answers

Audit assertions are the claims made by management regarding the accuracy and completeness of financial statements.

• Audit assertions are used by auditors to assess the risk of material misstatement in financial statements.

• There are six types of audit assertions: existence, completeness, accuracy, cutoff, classification, and presentation.

• For example, existence assertion means that the assets and liabilities exist at a gi...read more

Accounts Receivable audit involves verifying the accuracy and completeness of the recorded transactions.

• Verify the existence of the receivables by sending confirmations to customers.

• Check the accuracy of the recorded amounts by comparing them to supporting documents.

• Review the aging of the receivables to identify any potential issues with collection.

• Assess the adequacy of the allowance for doubtful accounts.

• Test the co...read more

Materiality level is set based on the significance of financial information to users of financial statements.

• Consider the size and nature of the item or error

• Assess the impact on financial statements and key ratios

• Evaluate the effect on users' decisions

• Use professional judgment and consider relevant laws and regulations

• Document the rationale for materiality level chosen

Sampling types include random, stratified, cluster, convenience, and quota sampling.

• Random sampling involves selecting participants randomly from the population.

• Stratified sampling involves dividing the population into subgroups and selecting participants from each subgroup.

• Cluster sampling involves selecting groups or clusters from the population and then selecting participants from within those clusters.

• Convenience s...read more