audit tuesday

Walk me through an audit

1. Plan (understand business), 2. Identify key risks, 3. Perform testing (controls/transactions), 4. Evaluate results, 5. Report findings & recommendations.

What are internal controls?

Processes put in place to ensure accuracy, prevent fraud, and improve efficiency.

Give me an example of a control

Segregation of duties—where different people handle authorization, recording, and custody to reduce fraud risk.

What is COSO?

A framework used to evaluate and design effective internal controls.

Name the 5 COSO components

1. Control Environment, 2. Risk Assessment, 3. Control Activities, 4. Information and Communication, 5. Monitoring.

What is risk-based auditing?

Focusing audit efforts on the areas with the highest risk to ensure efficient and effective audits.

What would you do if you found an issue?

Document the issue, analyze its impact, communicate it clearly, and suggest a practical solution.

Internal vs External audit?

Internal focuses on improving processes and controls; External provides an opinion on financial statements.

Why do you want internal audit?

I am interested in understanding business operations and improving processes through risk and control analysis.

Tell me about yourself

Accounting student with tax and fund accounting experience. Strong Excel/analytical skills. Interested in internal audit for its mix of risk analysis, problem-solving, and cross-functional teamwork.

Scenario: What if a control fails?

I would assess the severity, determine the root cause, evaluate the impact, and recommend improvements to prevent recurrence.

Scenario: How do you prioritize audit work?

I prioritize based on risk—focusing on areas with the highest financial or operational impact first.

Scenario: What makes a good auditor?

Attention to detail, strong analytical thinking, professional skepticism, and clear communication.