10+ Audit Manager Interview Questions and Answers

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

NPA stands for Non-Performing Assets, prudential restructuring is a process to improve the financial health of a company, and financial outsourcing is the practice of contracting out financial activities to a third party.

• NPA refers to loans or advances that are in default or are in arrears of scheduled payments for a specified period.

• Prudential restructuring involves making changes to a company's financial structure to enhance its stability and performance.

• Financial outsourci...read more

Practical rulings can be used to implement effective automobile dealership policies for both finance and operations.

• Business operation strategies should be aligned with the dealership's goals and objectives.

• Practical rulings can help ensure compliance with regulations and industry standards.

• Effective policies should be communicated clearly to all employees and regularly reviewed for effectiveness.

• Examples of practical rulings include guidelines for financing options, inventor...read more

Auditing in a garments factory involves reviewing financial records, compliance with regulations, and quality control processes.

• Review financial records to ensure accuracy and compliance with accounting standards

• Check compliance with labor laws and regulations

• Assess quality control processes to ensure products meet industry standards

• Evaluate inventory management and supply chain processes

• Conduct interviews with management and staff to gather information

• Prepare audit reports a...read more

Section 185 of the Companies Act deals with loans to directors by the company.

• Section 185 prohibits a company from giving any loan, guarantee, or security in connection with a loan to its directors or any other person in whom the director is interested.

• There are certain exceptions to this rule, such as loans given in the ordinary course of business or if the company is a banking or financial institution.

• Any contravention of Section 185 can result in penalties for both the com...read more

CARO reporting requirements refer to the reporting standards specified by the Companies (Auditor's Report) Order.

• CARO reporting requirements are specified by the Companies (Auditor's Report) Order, 2016.

• These requirements mandate specific disclosures to be made by auditors in their report on the financial statements of companies.

• Some of the key areas covered by CARO reporting include fixed assets, inventory, loans granted, internal control systems, etc.

• Non-compliance with CAR...read more

Qualifications in audit reports include unqualified, qualified, adverse, and disclaimer opinions.

• Unqualified opinion: clean report with no issues

• Qualified opinion: issues that are not pervasive

• Adverse opinion: financial statements are not accurate

• Disclaimer opinion: auditor cannot form an opinion due to lack of information

Yes, I am willing to travel across India for the job.

• I have experience traveling for work in my previous job.

• I am comfortable with different modes of transportation.

• I am willing to stay in different locations for extended periods of time.

• I understand the importance of being flexible and adaptable while traveling.

Limits for specific areas refer to boundaries or thresholds set for certain aspects of the audit process.

• Limits for specific areas help ensure compliance with regulations and standards.

• Examples include materiality thresholds for financial statement items, time limits for completing audit procedures, and scope limitations for audit engagements.

• These limits are important for maintaining the quality and effectiveness of the audit process.

Test of controls is a procedure performed by auditors to evaluate the effectiveness of internal controls.

• Test of controls assesses the design and implementation of internal controls.

• It involves testing the operating effectiveness of controls through inquiry, observation, inspection, and reperformance.

• Examples of test of controls include reviewing segregation of duties, examining authorization procedures, and testing IT controls.

• The purpose is to provide assurance on the relia...read more