Audit Interview Questions and Answers in 2025 (100+ Q&A)

Ques:- What are the different advantages and disadvantages of internal audit?

Asked In :- Everest Bank, Excise Department, TTN, BSI Group, EisnerAmper, GRT Jewellers, Mahagenco, bny mellon, mankind pharma ltd, mercury insurance,

Right Answer:
**Advantages of Internal Audit:**
1. Improves risk management and control processes.
2. Enhances operational efficiency and effectiveness.
3. Provides assurance on compliance with laws and regulations.
4. Identifies areas for cost savings and process improvements.
5. Strengthens governance and accountability within the organization.

**Disadvantages of Internal Audit:**
1. Can be perceived as intrusive by employees.
2. May lead to resistance or lack of cooperation from staff.
3. Requires resources, including time and personnel, which can be costly.
4. Potential for bias if internal auditors are too close to the operations.
5. Findings may not always lead to immediate action or improvement.

Accountant/ Accounts Executive Audit

Ques:- What are the basic principles of an internal audit controlsystem?

Asked In :- Bank AL Habib, CPCL, Kirtane & Pandit, Price Bailey, UCC Coffee, Team Ferro Alloys, The Gayatri Co-operative Urban Bank, The Krishna District Co-operative Central Bank, MassMutual, bny mellon,

Right Answer:
The basic principles of an internal audit control system include:

1. **Independence**: Auditors should be independent from the operations they audit.
2. **Objectivity**: Auditors must remain impartial and unbiased in their assessments.
3. **Systematic Approach**: Audits should follow a structured and methodical process.
4. **Risk Assessment**: Identifying and evaluating risks to determine audit focus.
5. **Evidence-Based**: Findings should be supported by sufficient and relevant evidence.
6. **Continuous Improvement**: The system should promote ongoing enhancements to processes.
7. **Compliance**: Ensuring adherence to laws, regulations, and internal policies.
8. **Communication**: Clear reporting of findings and recommendations to management.

Accountant/ Accounts Executive Audit

Ques:- What Does An Internal Audit Charter Contain?

Asked In :- Bank AL Habib, DFO, Rajkot Nagarik Sahakari Bank, IBG Fincon, Balaji Group, Ra Chem Pharma Ltd, hamad medical corporation, mercury insurance, concern worldwide, reserve bank of australia,

Right Answer:
An Internal Audit Charter typically contains the following elements:

1. Purpose and mission of the internal audit function.
2. Authority and responsibility of the internal audit department.
3. Scope of internal audit activities.
4. Independence and objectivity requirements.
5. Reporting structure and communication protocols.
6. Standards and guidelines to be followed.
7. Roles and responsibilities of the internal audit staff.
8. Relationship with the audit committee and management.

Accountant/ Accounts Executive Audit

Ques:- What are the importance of internal audit to the organization?

Asked In :- Junior Assistant, PRGX Global, Mecca Bingo, Bank Negara, OSFI, V Singhi & Associates, South Pole Carbon Asset Management, Gopinath Patil Parsik Janata Sahakari Bank, Mcb Bank, hdfc bank,

Right Answer:
Internal audits are important to an organization because they help ensure compliance with laws and regulations, assess the effectiveness of internal controls, identify areas for improvement, enhance operational efficiency, provide assurance to management and stakeholders, and help mitigate risks.

Accountant/ Accounts Executive Audit

Ques:- How does the internal audit differ from an external audit?

Asked In :- Bangladesh Securities and Exchange Commission BSEC, Bank AL Habib, BPSC, NBP National Bank of Pakistan, Aditya Birla Housing Finance, Mcb Bank, point72, cmc markets, securian financial group, pkf littlejohn,

Right Answer:
Internal audit is conducted by employees of the organization to assess internal controls and processes, while external audit is performed by independent auditors to provide an objective evaluation of the financial statements for stakeholders.

Accountant/ Accounts Executive Audit

Ques:- What do you mean by vouching?

Asked In :- Offshore Accounting & Taxation Services, DFO, Excise Department, S S Kothari Mehta & Co, The Hasti Co-Op Bank, Meezan Bank, Pan Asia Bank, bureau veritas, san miguel corporation, deliveroo,

Right Answer:
Vouching is the process of verifying the authenticity and accuracy of financial transactions by examining supporting documents, such as invoices, receipts, and contracts, to ensure that they are recorded correctly in the accounts.

Accountant/ Accounts Executive Audit

Ques:- What is The Statutory Audit mean?What are its details and procedure?

Asked In :- Omega Healthcare, Shriram Finance, S S Kothari Mehta & Co, Bank Negara, The Hasti Co-Op Bank, Mahagenco, ey, bdo uk llp, inland revenue nz, bernhard schulte shipmanagement,

Right Answer:
A statutory audit is a legally required review of the accuracy of a company's financial statements and records. It is conducted by an external auditor to ensure compliance with accounting standards and regulations.

The procedure typically involves:

1. **Planning**: Understanding the business and its environment, assessing risks, and developing an audit plan.
2. **Fieldwork**: Collecting evidence through tests of transactions, internal controls, and financial statements.
3. **Evaluation**: Analyzing the collected data to form an opinion on the financial statements.
4. **Reporting**: Issuing an audit report that includes the auditor's opinion on whether the financial statements present a true and fair view of the company's financial position.
5. **Follow-up**: Addressing any issues or recommendations identified during the audit.

Accountant/ Accounts Executive Audit

Ques:- Explain Different Functions Of Internal Audit?

Asked In :- CPCL, TFT, Fino Payment Bank, SAICA, Office of the Auditor General, VITAE International Accounting Services, kpmg canada, bdo uk llp, zenith bank, commercial bank of ethiopia,

Right Answer:
The different functions of internal audit include:

1. **Risk Assessment**: Identifying and evaluating risks that could affect the organization.
2. **Compliance Monitoring**: Ensuring adherence to laws, regulations, and internal policies.
3. **Operational Efficiency**: Assessing the efficiency and effectiveness of operations and processes.
4. **Financial Accuracy**: Verifying the accuracy and reliability of financial reporting.
5. **Fraud Detection**: Identifying potential fraud and irregularities within the organization.
6. **Control Evaluation**: Assessing the adequacy and effectiveness of internal controls.
7. **Advisory Services**: Providing recommendations for improvements and best practices.

Accountant/ Accounts Executive Audit

Ques:- How can scope of internal audit help you?

Asked In :- Omega Healthcare, Pramata, First American, PRGX Global, escalon, KNAV, EYG, The Gayatri Co-operative Urban Bank, The Bharat Co-Operative Bank (Mumbai), Vested Finance,

Right Answer:
The scope of internal audit helps by identifying risks, ensuring compliance with laws and regulations, improving operational efficiency, and providing recommendations for better financial management and controls.

Accountant/ Accounts Executive Audit

Ques:- Tell me that how I can evaluate the internal control audit?

Asked In :- Commonwealth Bank of Australia, SAICA, MNP LLP, HIMT, Pan Asia Bank, Mcb Bank, CLA (CliftonLarsonAllen), defense contract management agency (dcma), capitec bank, bluecross blueshield of tennessee,

Right Answer:
To evaluate the internal control audit, follow these steps:

1. **Understand the Control Environment**: Assess the organization's culture, governance, and ethical values.
2. **Identify Key Controls**: Determine which controls are critical for mitigating risks in financial reporting and compliance.
3. **Test Control Design**: Evaluate whether the controls are properly designed to prevent or detect errors and fraud.
4. **Test Control Operating Effectiveness**: Perform tests to see if the controls are functioning as intended over a period.
5. **Assess Risk**: Identify and evaluate risks associated with the controls and their impact on financial statements.
6. **Document Findings**: Record the results of your evaluation, including any deficiencies or areas for improvement.
7. **Report Recommendations**: Provide actionable recommendations to strengthen internal controls based on your findings.

Accountant/ Accounts Executive Audit

Ques:- What Is An Internal Audit And What Is The Role Of Internal Audit?

Asked In :- Anand Rathi, Bajaj Allianz, Excise Department, Sage Intacct, Zaggle, Citco, KNAV, Rajkot Nagarik Sahakari Bank, Ra Chem Pharma Ltd, Mahagenco,

Right Answer:
An internal audit is an independent evaluation of an organization's internal controls, risk management, and governance processes. The role of internal audit is to assess the effectiveness of these systems, ensure compliance with laws and regulations, identify areas for improvement, and provide recommendations to enhance operational efficiency and effectiveness.

Audit Cost Accountant/ Icwa

Ques:- What to do after the audit?

Asked In :- Offshore Accounting & Taxation Services, CPCL, First American, Manubhai & Shah, AFEX Group, ey, capitec bank, pwc canada, banque misr, kpmg malaysia,

Right Answer:
After the audit, you should review the audit findings, address any identified issues, implement recommended changes, prepare an action plan for improvements, communicate results to relevant stakeholders, and ensure compliance with any regulatory requirements.

Accountant/ Accounts Executive Audit

Ques:- Explain the difference between internal audit and statutory audit?

Asked In :- Bangladesh Securities and Exchange Commission BSEC, District Cooperative Central Bank DCCB, Federal Bank India, S S Kothari Mehta & Co, Price Bailey, EYG, Manubhai & Shah, Revenue Assurance Services, pwc, bdo uk llp,

Right Answer:
Internal audit is conducted by a company's own staff to evaluate and improve the effectiveness of risk management, control, and governance processes. Statutory audit, on the other hand, is an independent examination of financial statements required by law to ensure accuracy and compliance with accounting standards.

Audit Cost Accountant/ Icwa

Ques:- What are Objectives Of Internal Audit?

Asked In :- Bank AL Habib, DFO, Tax Assistant, Australian Border Force, The Hasti Co-Op Bank, Revenue Assurance Services, ey, hdfc bank, kpmg canada, mankind pharma ltd,

Right Answer:
The objectives of internal audit are to evaluate the effectiveness of risk management, control processes, and governance practices; ensure compliance with laws and regulations; improve operational efficiency; provide assurance on the reliability of financial reporting; and support the organization's strategic objectives.

Audit Cost Accountant/ Icwa

Ques:- What are the Essential Of Internal Audit?

Asked In :- Offshore Accounting & Taxation Services, Shriram Finance, HIMT, Konkan Railway, hsbc commercial banking, defense contract management agency (dcma), rsm uk, workplace safety and insurance board (wsib), pkf sridhar & santhanam, harman finochem ltd,

Right Answer:
The essentials of internal audit include:

1. Independence: The internal audit function must be independent from the operations it evaluates.
2. Objectivity: Auditors should remain impartial and unbiased in their assessments.
3. Competence: Auditors should possess the necessary skills and knowledge to perform their duties effectively.
4. Systematic Approach: Internal audits should follow a structured and methodical process.
5. Risk Assessment: Identifying and assessing risks is crucial for effective auditing.
6. Compliance: Ensuring adherence to laws, regulations, and internal policies.
7. Reporting: Clear and concise reporting of findings and recommendations to management.
8. Continuous Improvement: The internal audit process should promote ongoing enhancements in operations and controls.

Audit Cost Accountant/ Icwa

Ques:- What techniques used during an audit?

Asked In :- Everest Bank, HDB Financial Services, Dutch-Bangla Bank, Revenue Assurance Services, Beml, NatWest Group, macquarie group, nyk line, clsa, crowe horwath llp,

Right Answer:
The techniques used during an audit include:

1. **Sampling** - Selecting a representative subset of transactions.
2. **Analytical Procedures** - Evaluating financial information through analysis of plausible relationships.
3. **Inquiry** - Asking questions of management and staff to gather information.
4. **Observation** - Watching processes and procedures being performed.
5. **Inspection** - Examining documents, records, and tangible assets.
6. **Reperformance** - Re-doing calculations or processes to verify accuracy.
7. **Confirmation** - Obtaining direct verification from third parties regarding account balances or transactions.

Audit Cost Accountant/ Icwa

Ques:- What is statutory audit?

Asked In :- District Cooperative Central Bank DCCB, Prakash Kochar & Co, PRGX Global, EYG, Manubhai & Shah, bureau veritas, pwc canada, oxford properties group, pwc middle east, crowe horwath llp,

Right Answer:
A statutory audit is an official examination of a company's financial statements and records, required by law to ensure accuracy and compliance with accounting standards and regulations.

Audit Cost Accountant/ Icwa

Ques:- How Does An Internal Audit Differ From An External Audit?

Asked In :- CPCL, V Singhi & Associates, Lion International Bank, M&T Bank Corporation, ubs, workplace safety and insurance board (wsib), andersen tax, perella weinberg partners, kpmg sri lanka, sendik's food market,

Right Answer:
An internal audit is conducted by an organization's own staff to evaluate internal controls, risk management, and governance processes, while an external audit is performed by an independent third party to provide an objective assessment of the financial statements and compliance with regulations.

Audit Management Trainee/ Trainee

Ques:- What was your experience in the field of Audit during your CA internship?

Asked In :- Ra Chem Pharma Ltd, central bank of kenya, vanquis bank, scottish courts and tribunals service, a-lign, mahajan & aibara, beever and struthers, icb islamic bank (bangladesh) ltd., quality council of india(qci), us equity advantage,

Right Answer:

During my CA internship, I gained hands-on experience in auditing by working on statutory audits, internal audits, and tax audits. I was involved in checking financial records, verifying vouchers, preparing audit reports, and ensuring compliance with accounting standards. I also assisted in stock audits and interacted with clients, which improved my understanding of business processes and enhanced my analytical and communication skills. It was a valuable learning experience in the field of audit.

Audit

Ques:- Which lines u go in your future

Asked In :- OSFI, Dutch-Bangla Bank, M&T Bank Corporation, bny mellon, pwc canada, moss adams llp, state bank of pakistan, kreston reeves, xl dynamics india pvt. ltd., crowe horwath malaysia,

Right Answer:
In my future, I aim to pursue a career in audit and compliance, focusing on enhancing financial transparency and risk management within organizations.

An audit is a systematic and independent process of examining an organization’s records, accounts, and operations to provide an objective assessment. While the term is most commonly associated with financial audits, the practice extends to various other areas, including compliance, internal processes, and IT systems. The core principle of any audit is to verify that information is accurate, reliable, and compliant with established standards and regulations.

The most prevalent type, a financial audit, involves an external and impartial auditor reviewing a company’s financial statements, such as the balance sheet, income statement, and cash flow statement. The goal is to determine if these statements are presented fairly and truthfully, and in accordance with generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS). The resulting audit report, which contains the auditor’s opinion, is crucial for investors, creditors, and other stakeholders who rely on this information to make informed decisions. A “clean” or “unqualified” opinion provides a high degree of assurance that the financial statements are free from material misstatements.

Beyond external financial audits, many large organizations have an internal audit function. Internal auditors are employees who independently evaluate a company’s internal controls, risk management, and governance processes to help improve their effectiveness. There are also compliance audits, which ensure a company is adhering to specific laws and regulations, and operational audits, which assess the efficiency and effectiveness of business processes. Regardless of the type, an audit serves as a vital tool for corporate governance and accountability, enhancing credibility, deterring fraud, and providing a pathway for continuous improvement.

Questions in: Audit

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