2) Mention what is the difference between internal and external audit?
External audit’s main focus is on the accuracy of the financial statements and annual report, while the internal audit has a wide prospective and looks into anything that is important for the organization’s success.
3) Explain the steps before an audit processes?
Ensure the authority of the audit team is established- it will enhance the co-operation from the auditees
Decide which areas of the company will be audited and the frequency of the audits. Prepare as yearly audit schedule and distribute
Determine the purpose of the audit whether it complies with government regulations, quality standards, internal procedures and systems
Organize a meeting with the auditors to discuss plan, scope and purpose of the audit
Read the documents you are auditing against.
4) Mention what is meant by decommission liability?
De-commission liability is costs that a company expects to levied in the future when the plant is shut-down.
5) Explain what is required to perform an internal audit?
To perform an internal audit all of the financial records shall be given by the treasurer for the audit, including the check-book register, bank statement, deposit slip, cancelled checks, treasurer’s reports, expense vouchers or warrants with bill receipts, the annual treasurer’s report etc.
6) List out the check-list for the internal audit?
Check-list for the internal audit includes
Warrants / Vouchers
Bills / Receipts
Disbursements / checks
7) Mention what all things have to be taken care for checks and vouchers in internal audit?
Internal audit Checks and Vouchers
Make sure that there are no missing checks
Voided checks are saved
All checks recorded in check register
Written for all checks, including voided checks
Amount on check matches amount on voucher/warrant
Adequate explanation for all expenditures
8) Explain how you should conduct an internal audit?
To conduct an internal audit you should
Decide what you want to achieve
Identify risks and review objectives
Plan and audit activities
Validate the facts and complete the work
Develop a deliverable or report that will drive action
9) Explain what is the meaning of plan drawn up in internal audit?
Plan drawn up is the assessment of the risk that is mutually agreed between the internal audit, senior management and audit committee determines the frequency with which particular audits take place.
10) Why internal audit is necessary?
Internal Audit is necessary to
Enhance the size and complexity of businesses
Increase the compliance requirements
Focus on risk management and internal controls to manage them
Unconventional business models
Stringent norms implemented by regulators to protect investors
Intensive use of information technology
Increasingly competitive environment
11) Explain what you should do after the internal audit?
After the internal audit,
Hold an auditors meeting with auditees involved with the audit, discuss the non-conformances and what part is missed
Issue the audit report in a timely manner
Encourage auditees to take corrective actions again flaws
Help and guide those responsible for completing the corrective actions with setting reasonable deadlines
Take the feed-back of the auditees and how your audit team were perceived
These interview questions will also help in your viva(orals)