Audit Interview Preparation Guide
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Audit Interview Questions and Answers will guide us here that Audit is a process of an evaluation of a person, organization, system, process, project or product. Audits are performed to ascertain the validity and reliability of information, also to provide an assessment of a systems internal control. The goal of an audit is to express an opinion on the person / organization/system (etc) in question, under evaluation based on work done on a test basis.

41 Audit Questions and Answers:

1 :: What is an audit process?

The word 'Audit' is a derivative of the word 'Audition' which means 'to hear'. In earlier times, the Kings used to hear their accountants narrate the accounts verbally. However, as the complexity of the accounting function grew, need was felt to thoroughly check the accounts for mistakes misclassification and document the findings in a written form so that it can be used by the Management, stakeholders, investors, Government and various other bodies. This process is known as Auditing or Audit.
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2 :: What is statutory audit?

It is a compulsory audit done by a CA.
Finance Audit conduct by the CA to compliance the legal requirements of monitory issues.
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3 :: What do you mean by vouching?

Vouching is the process of checking the authentication of the voucher maintain by the management with the respective supporting document.
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4 :: Explain the Before an audit processes?

► Make sure the authority of the audit team is established - this will increase the cooperation from auditees.
► Decide what areas of the company will be audited and the frequency of the audits. Prepare a yearly audit schedule and distribute.
► Develop an audit plan. Decide what other audit resources are needed - checklists, other auditors?
► Determine the purpose of the audit - is it to comply with government regulations, quality standards, internal procedures and systems? v Define the scope of the audit - is it an overview of the area being audited or is it to concentrate on a specific system within the area?
► Hold a meeting with the auditors to discuss the plan, purpose, and scope of the audit.
► Read the documents you will be auditing against. Know what they say. Develop questions to ask the auditees.
► Conduct an opening meeting with the auditees.
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5 :: What techniques used during an audit?

► Be professional at all times. Avoid being judgmental.
► Follow safety procedures, clean room procedures, and all other required procedures.
► Explain the purpose of the audit to the auditees.
► Answer questions or discuss compliance problems brought to your attention by auditees.
► Be flexible - if you find a potential problem not within the scope of the audit - evaluate the potential risks of the problem if left unaddressed.
► Encourage honesty with the auditees.
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6 :: What to do after the audit?

► Hold an auditors meeting to discuss the closing meeting content.
► Hold a closing meeting with all auditees involved with the audit. First, point out what was done well. Second, address the nonconformances and ensure the auditees understand the nonconformances and what part of the standard is not met.
► Issue the audit report in a timely manner.
► Encourage auditees to decide on the corrective actions. Allowing auditees to have input will give them ownership in implementing changes.
► Assist those responsible for completing the corrective actions with setting reasonable deadlines. The corrective action deadlines may vary depending on the severity of the noncompliance.
► Be available and willing to help the auditees.
► Ask for feedback on how you and your audit team were perceived - adjust your approach if necessary.
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7 :: How to involve people in audit?

Use audits as opportunities to train others. Ask for a volunteer (who is not an auditor) to walk through the audit process with you as an assistant. This will provide others with a better understanding of what audits are and why they are necessary.

Invite all the auditees to the closing meeting. Having been an auditee, I know it helps to hear audit findings firsthand, the positive as well as the negative.

Involving people creates a feeling that everyone is a vital contributor to the goal of the company - compliance.
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8 :: Explain The Difference Between Internal Audit And External Audit?

The internal audit is conducted to help the management. The weakness of the management is disclosed. The external audit is conducted to help the shareholder. The rights of owners are protected. The appointment of internal audit is made by the management. The appointment in external audit is made by the shareholders. Internal audit is the part of internal control.

External audit is the not the part of internal control.The internal audit can suggest improvement in internal check system. The external audit can not suggest improvement in internal check system. The internal audit can perform his duties under the terms of appointment. The management can limit the scope of work at any time. The external auditor can perform his work to terms of appointment and other prescribed law. The scope is very wide. Internal audit is an employee of the company. He is not an independent person. External auditor is not an employee of the company.
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9 :: How Does An Internal Audit Differ From An External Audit?

Internal audit nothing but the checking the product that you produced.
External audit is checking your product by your customer.
Here it means you may not find mistakes in your processes but a third man who comes and check the system he may see some deviations in the system and give suggestions for the improvements of the system.
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10 :: What are Objectives Of Internal Audit?

The purpose of internal audit is to keep proper control over business activities. When there is proper control there is maximum efficiency. The internal auditor determines the degrees of control over work. The purpose of internal audit is to evaluate the accounting system. It is concerned with checking proper authority for transactions like purchase, retirement and disposal of fixed assets. The vouchers can be compared with entries in order to determine that figures are facts.

The purpose of internal audit is to help the management. Internal auditor can point out the weakness. The internal audit can be used as a tool to correct the situation. The management functions can be performed properly. The purpose of internal audit is to review the working of business. The working of current tear can be reviewed in detail just to note the successful area of working. There is a need to locate the weak points. The corrective measures can be taken for proper working.
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