15 Accounting Communication Interview Questions and Answers

In the business world, communication is key. This is especially true in the field of accounting, where the ability to communicate financial information clearly and concisely is essential.

If you’re interviewing for an accounting position, you can expect to be asked questions about your communication skills. To help you prepare, we’ve compiled a list of sample accounting interview questions and answers related to communication.

1. Why is communication important in accounting?

This question is a great way to show your interviewer that you understand the importance of communication in accounting. Use examples from your experience to explain how effective communication can help an organization succeed.

Example: “Communication is important in accounting because it allows us to share information with each other and our clients. In my previous role, I was responsible for communicating financial reports to upper management on a monthly basis. This allowed them to make informed decisions about company spending and revenue. It also helped me identify any issues or concerns before they became major problems.”

2. What are some of the main challenges to effective communication in accounting?

This question can help the interviewer understand your communication skills by allowing you to discuss some of the challenges you’ve faced in the past. Your answer should include a few examples of how you overcame these challenges and what strategies you used to improve your communication with others.

Example: “The main challenge I have found when communicating in accounting is that there are so many different people involved in the process, which makes it difficult to ensure everyone understands the information they need to know. In my last role, I developed an internal newsletter where I would highlight important company news and provide updates on projects or changes within the organization. This helped me communicate more effectively with employees who weren’t directly involved in the accounting department.”

3. How do you think technology has changed how accountants communicate with each other and clients?

This question can help interviewers understand how you use technology in your accounting work. Use examples from your experience to explain how you’ve used technology to communicate with clients and other accountants.

Example: “Technology has changed the way I communicate with my colleagues and clients because it allows me to send important information quickly. For example, when I was working on a client’s tax return last year, I needed to find out more about their business expenses. Instead of having to call them or wait for an email response, I could simply look up the information online. This saved time for both of us.”

4. Can you explain what a business plan is? What does it contain?

This question is a great way to test your accounting communication skills because it requires you to explain something that may be unfamiliar to the interviewer. It’s important to make sure you’re able to clearly and concisely describe what a business plan is, as well as its components.

Example: “A business plan is a document that outlines all of the goals and objectives for a company. It includes information about the company’s mission statement, financial statements, marketing strategies, sales forecasts and more. A good business plan should also include a timeline so that everyone involved in the company knows when they can expect certain things.”

5. What’s the difference between an audit and a review report?

An interviewer may ask this question to assess your knowledge of accounting terminology. This is because the two reports are similar in that they both summarize a company’s financial records, but an audit is more comprehensive and requires a certified accountant to complete it. A review report can be completed by anyone with adequate experience working with financial documents.

Example: “An audit involves examining all aspects of a company’s finances, including its assets, liabilities, revenue and expenses. It also includes reviewing internal controls and compliance procedures. In contrast, a review report only examines a company’s financial statements and does not include any other processes or procedures. An auditor must have at least five years of professional experience to conduct an audit, while someone with less experience can complete a review.”

6. In your opinion, what makes for a good auditor-client relationship?

This question can help the interviewer assess your communication skills and how you interact with clients. Your answer should show that you value client relationships, are empathetic to their needs and have interpersonal skills that allow you to communicate effectively with clients.

Example: “I believe a good auditor-client relationship is one where both parties feel comfortable asking questions or raising concerns about accounting processes. I always make sure my clients know they can contact me at any time if they need clarification on anything or want to discuss something in more detail. This helps build trust between us and ensures they understand our work thoroughly.”

7. What is meant by “audit documentation?”

This question is a great way to test your knowledge of accounting communication skills. It also allows you to show the interviewer that you can apply what you know about audit documentation to real-world situations.

Example: “Audit documentation refers to all records and documents related to an audit, including any notes or memos I write during the process. In my last role as an accountant, I was responsible for maintaining all audit documentation throughout the year. This included creating folders for each client’s files and storing them in a secure location. I also had to ensure that all documents were properly filed according to company policy.”

8. Are there any situations when auditors may not be able to complete their work within the time period agreed upon at the start of the engagement? If yes, then can you give me examples of such circumstances?

This question is designed to assess your ability to communicate with clients and other stakeholders about the status of an audit. It also helps employers understand how you will handle unexpected delays in completing work on time.

Example: “There are many factors that can affect the completion date of an audit, including the complexity of the client’s financial records and the availability of key personnel. In my experience, I have encountered situations where auditors were unable to complete their work within the agreed-upon timeframe. When this happens, it is important for me to communicate with the client as soon as possible so they know what is happening and when we expect to be able to finish our work.”

9. Do you have experience working with tax returns? If yes, then tell me about it.

This question is a great way to see how much experience you have with tax returns and what your process was. If you don’t have any experience, then it’s okay to say that you haven’t worked with them before but can learn the process quickly.

Example: “I’ve never had the opportunity to work on tax returns, however I am familiar with the process of filing them. I understand the importance of making sure all information is accurate and filed correctly so there are no issues later on.”

10. Do you know anything about the Sarbanes Oxley Act or SOX? If yes, then how has it impacted the way companies file their taxes?

The Sarbanes Oxley Act is a law that was passed in 2002 to protect investors and the public from accounting fraud. It requires companies to keep accurate records of their finances, including how they spend money and where it comes from. The interviewer may ask you this question to see if you have any experience with SOX or if you know what it is. If you do not have any experience with SOX, then explain why you would be interested in learning more about it.

Example: “I am familiar with SOX because I took an accounting class in college that discussed it. However, I don’t have any real-world experience with it since my internship didn’t involve filing taxes.”

11. What’s the difference between internal and external audits?

Internal and external audits are two important types of accounting procedures. Internal audits examine the financial records of a company to ensure they’re accurate, while external audits assess the accuracy of a client’s financial records. Your answer should show that you understand the differences between these processes and can apply them in your work.

Example: “Internal audits are performed by an organization on its own financial records. They’re usually conducted annually or quarterly to make sure all transactions have been recorded correctly. External audits are performed by an outside party on another business’s financial records. These are typically done for clients who want assurance that their financial records are being accurately reported.”

12. What is meant by a “procedural deficiency?”

This question is a great way to test your accounting knowledge and ability to communicate complex ideas. When answering this question, it can be helpful to use an example of a procedural deficiency you have encountered in the past.

Example: “A procedural deficiency is when there are errors or omissions in the company’s financial records that result from improper procedures. For example, I once worked with a client who had a procedural deficiency because they were not properly documenting their cash receipts. This led to them having inaccurate information about how much money was coming into the business.”

13. What steps would you take if you discover that a client has made a mistake on their return?

This question can help the interviewer determine how you handle mistakes and errors in accounting. Your answer should include steps you take to ensure that clients understand their mistake, what they need to do to fix it and how you will correct your own error.

Example: “If a client makes an error on their return, I first explain why this is important for them to know. If the client has already filed their return, I ask if they would like me to file an amended return or prepare a new one. If they have not yet filed, I tell them that we can still make changes to their return before submitting it to the IRS. This helps prevent any penalties from being assessed.”

14. Have you ever uncovered fraud during an audit? If yes, then tell me about it.

Fraud is a serious issue in accounting, and employers want to know that you have the skills necessary to identify it. If you’ve encountered fraud before, explain how you discovered it and what steps you took to report it.

Example: “I once worked for an organization where I noticed some discrepancies in their financial records. After investigating further, I found that one of the employees was embezzling money from the company. I reported my findings to my manager, who then informed the board of directors. The company fired the employee and hired new accountants to fix the problem.”

15. What do you understand about the Generally Accepted Accounting Principles (GAAP) framework?

The interviewer may ask this question to assess your accounting knowledge and how you apply it in the workplace. Use your answer to highlight your understanding of GAAP, as well as any other accounting principles that are relevant to the job.

Example: “I understand that GAAP is a set of standards for financial reporting that all companies must follow when preparing their financial statements. I also know that there are several types of GAAP, including US GAAP, International Financial Reporting Standards (IFRS) and Statement of Financial Accounting Standards (SFAS). In my previous role, I worked with both IFRS and SFAS standards because we had clients from different countries.”