RSM India Internal Auditor Interview Questions and Answers

Learned about financial statement preparation, audit procedures, and client communication.

• Assisted in the preparation of financial statements for clients

• Conducted audit procedures such as testing internal controls and verifying account balances

• Communicated with clients to gather necessary information and provide updates on audit progress

• Learned about the importance of professional skepticism and attention to detail in

Internal audit process of a manufacturing company involves evaluating the effectiveness of internal controls, risk management, and compliance.

• Assessing the adequacy of inventory controls

• Reviewing production processes for efficiency and effectiveness

• Evaluating compliance with environmental regulations

• Assessing the effectiveness of quality control measures

• Reviewing financial controls and transactions

• Evaluating the effect...read more

Depreciation is the allocation of the cost of tangible assets over their useful life, while amortization is the allocation of the cost of intangible assets over their useful life.

• Depreciation is used for tangible assets like buildings, machinery, vehicles, etc.

• Amortization is used for intangible assets like patents, copyrights, trademarks, etc.

• Both depreciation and amortization help in spreading out the cost of an asse...read more

Auditing is the process of examining financial records to ensure accuracy and compliance with laws and regulations.

• Auditing helps to detect and prevent fraud and errors in financial statements.

• It provides assurance to stakeholders that the financial information is reliable.

• Auditing is required by law for publicly traded companies to protect investors.

• It helps improve internal controls and operational efficiency.

• Auditor...read more

Professional scepticism is the attitude of doubting and questioning information, evidence, and assumptions in auditing to ensure objectivity and thoroughness.

• Professional scepticism involves maintaining a questioning mindset throughout the audit process.

• Auditors should not automatically accept information provided by the client, but instead critically evaluate and verify it.

• It is essential for auditors to remain indepe...read more

Financial statements include balance sheet, income statement, cash flow statement, and statement of changes in equity.

• Balance sheet shows assets, liabilities, and equity at a specific point in time.

• Income statement shows revenues, expenses, and net income over a period of time.

• Cash flow statement shows cash inflows and outflows from operating, investing, and financing activities.

• Statement of changes in equity shows cha...read more

The responsibilities of an Auditor include examining financial records, ensuring compliance with laws and regulations, and providing accurate and unbiased reports.

• Examining financial records to ensure accuracy and compliance

• Ensuring compliance with laws and regulations

• Providing accurate and unbiased reports to stakeholders

• Identifying and reporting any discrepancies or fraud

• Communicating findings and recommendations to

Cash flow statement is a financial report that shows the inflows and outflows of cash in a business over a specific period of time.

• It provides insights into a company's liquidity and ability to meet its financial obligations.

• Consists of three main sections: operating activities, investing activities, and financing activities.

• Helps investors and analysts assess the financial health of a company.

• Example: Cash flow from o...read more

Reconciling items in a Bank Reconciliation Statement (BRS) are differences between the bank statement and the company's records.

• Outstanding checks: Checks issued by the company but not yet presented for payment by the recipient.

• Deposits in transit: Cash or checks received by the company but not yet recorded by the bank.

• Bank errors: Mistakes made by the bank in recording transactions.

• Interest earned: Interest income ear...read more

Debits and credits are used in double-entry accounting to record financial transactions.

• Debits increase assets and expenses, and decrease liabilities and revenues.

• Credits increase liabilities and revenues, and decrease assets and expenses.

• Debits are recorded on the left side of an account, while credits are recorded on the right side.

• The accounting equation must always balance, with total debits equaling total credits.

Learned about financial statement preparation, audit procedures, and client communication.

• Assisted in the preparation of financial statements for clients

• Conducted audit procedures such as testing internal controls and verifying account balances

• Communicated with clients to gather necessary information and provide updates on audit progress

• Learned about the importance of professional skepticism and attention to detail in

Internal audit process of a manufacturing company involves evaluating the effectiveness of internal controls, risk management, and compliance.

• Assessing the adequacy of inventory controls

• Reviewing production processes for efficiency and effectiveness

• Evaluating compliance with environmental regulations

• Assessing the effectiveness of quality control measures

• Reviewing financial controls and transactions

• Evaluating the effect...read more