17 External Auditor Interview Questions and Answers

An external auditor is an accountant who is hired by a company to review and attest to the accuracy of that company’s financial statements. External auditors are independent of the company they are auditing, meaning they work for a third party, such as an accounting firm.

If you’re interviewing for an external auditor position, you can expect to be asked a range of questions about your accounting experience and knowledge. In this guide, we’ll provide you with some common interview questions and answers for external auditor positions, as well as tips on how to prepare for your interview.

Are you familiar with the types of audits that are commonly performed?

The interviewer may ask this question to see if you have experience with the types of audits that are common in their industry. Use your answer to highlight any specific types of audits you’ve performed and explain why they’re important.

Example: “I’ve worked on both financial and operational audits, which I find equally valuable. Financial audits help me ensure a company’s financial records are accurate and properly recorded. During an operational audit, I examine how well a company is performing its day-to-day operations. These two types of audits can provide insight into whether a company is meeting its goals and objectives.”

What are some of the most important qualities for someone in this role?

Employers ask this question to make sure you have the right skills and abilities for the role. They want someone who is detail-oriented, organized and able to work independently. When answering this question, think about what makes a good external auditor. Try to focus on qualities that are important in your own career.

Example: “I believe one of the most important qualities for an external auditor is attention to detail. This job requires us to examine financial records carefully so we can find any errors or inconsistencies. Another quality I think is important is organization. External auditors need to be able to organize their time well so they can meet deadlines. Finally, independence is key because external auditors often work alone.”

How would you approach an audit if you discovered some discrepancies?

An interviewer may ask this question to assess your problem-solving skills and how you handle challenges. Use examples from past experiences where you encountered a challenge, but also used your critical thinking skills to solve the issue.

Example: “If I discovered discrepancies during an audit, I would first try to understand why there were differences between what was recorded in the company’s books and what I found when conducting my own research. If it was something simple like a math error, then I would correct that discrepancy. However, if it was more complex, such as missing documentation or improper procedures, I would report those findings to my client so they could address them.”

What is your experience with financial statements and other related documents?

The interviewer may ask this question to learn more about your experience with financial statements and other documents that are important for an external auditor. Use your answer to highlight the specific types of documents you’ve worked with in the past, as well as how you handled them.

Example: “In my previous role, I was responsible for reviewing all financial statements and reports before they were submitted to clients. I also reviewed internal controls and procedures to ensure they were effective and efficient. In addition, I conducted a risk assessment on each client’s financial information to determine whether there were any areas of concern or red flags.”

Provide an example of a time when you had to give constructive criticism to management.

An external auditor needs to be able to give constructive criticism to management when they find issues with the company’s financial records. This question allows you to show your communication skills and how you can handle conflict in a professional manner.

Example: “In my last position, I found that one of our vendors was overcharging us for some of their products. When I brought this issue to my manager, she asked me to look into it further before we made any changes. After looking at all of the invoices from the vendor, I discovered that the employee responsible for ordering supplies had been embezzling money from the company. My manager thanked me for bringing this to her attention so quickly, allowing them to take action before more money was lost.”

If you found that an organization was not following best practices, what would be your approach?

This question can help the interviewer understand how you would handle a challenging situation. Use your answer to highlight your problem-solving skills and ability to work with others.

Example: “If I found that an organization was not following best practices, I would first try to determine why they were not following them. If it’s because of a lack of knowledge or resources, I would offer my assistance in helping them find solutions. However, if there is no reason for the company to follow best practices, I would report this information to my supervisor so we could discuss our next steps.”

What would you do if you noticed that management was not taking your recommendations seriously?

This question can help interviewers understand how you handle conflict and whether you are able to work with others. Your answer should show that you have the ability to collaborate with management, even if they do not agree with your recommendations.

Example: “If I noticed that management was not taking my recommendations seriously, I would first try to meet with them in person to discuss why they were ignoring my suggestions. If this did not resolve the issue, I would write a formal letter outlining the problem and send it to both management and my supervisor. This way, everyone is aware of the situation and knows that I am serious about resolving it.”

How well do you think you can get to know an organization’s internal processes and procedures?

The interviewer may ask this question to assess your ability to learn new information and adapt quickly. Use examples from previous experiences where you had to learn a company’s internal processes, procedures or systems.

Example: “I think I can get to know an organization’s internal processes fairly well by asking questions and observing how the employees interact with each other and their work. In my last role as external auditor for ABC Company, I noticed that there were some inconsistencies in the way employees interacted with one another and their work. After speaking with several employees about these inconsistencies, I learned that the company was undergoing some changes in its management team. The company hired a new CEO who implemented new policies and procedures. These changes required me to update my audit report.”

Do you have any experience working with other external auditors on complex projects?

This question can help the interviewer understand your ability to work with others and collaborate on projects. Use examples from your experience to highlight your teamwork skills, communication abilities and conflict resolution skills.

Example: “In my previous role as an external auditor, I worked with two other auditors who were also responsible for different aspects of a company’s financial records. We met regularly to discuss our progress and any issues we encountered while conducting audits. The three of us would often communicate via email or phone calls when one of us needed assistance with a project. In these situations, I was usually the person who communicated with the client about the status of the audit.”

When performing an audit, do you have a process you follow to ensure you don’t miss anything?

The interviewer may ask you a question like this to determine how well you follow procedures and protocols. Your answer should show that you understand the importance of following processes and procedures, as well as your ability to do so.

Example: “Yes, I have a process for every audit I perform. It’s important to me that I don’t miss anything when performing an audit because it could lead to inaccurate financial reporting. To ensure I don’t miss anything during my audits, I always start by reading through all documents thoroughly before moving on to any other part of the audit. Then, I move on to reviewing the company’s internal controls and testing them to make sure they are working properly. Finally, I complete the rest of the audit by comparing the company’s records with third-party sources.”

We want to make sure our employees are following best practices. How would you go about educating them on best practices related to their role?

An external auditor needs to be knowledgeable about best practices related to their role. This question helps the interviewer assess your ability to educate others on best practices and ensure they’re following them. Use examples from previous experience where you helped others learn about best practices in your field.

Example: “I would first make sure I understood the company’s policies and procedures, then I’d help my team understand how those relate to their daily tasks. For example, when working with a small business that had no formal internal audit department, I worked with management to create an internal auditing policy. I also created training materials for employees so they could learn more about what it means to perform an internal audit.”

Describe your process for documenting your findings after completing an audit.

The interviewer may ask you this question to understand how you organize your work and the steps you take to complete an audit. Use your answer to highlight your organizational skills, attention to detail and ability to meet deadlines.

Example: “I begin by creating a detailed outline of my findings before I start writing my report. This helps me stay organized as I write my final document. In my last role, I had to submit my reports within two weeks of completing an audit. To meet that deadline, I would spend one week organizing my notes and another week writing my report. I find it helpful to include all relevant information in my documents so I can reference them later if needed.”

What makes you an ideal candidate for this role?

Employers ask this question to learn more about your qualifications and how you feel you would be a good fit for the role. Before your interview, make sure you read through the job description thoroughly so you can refer to specific requirements or skills they are looking for in an applicant. In your answer, try to highlight any of these that you have experience with.

Example: “I am passionate about accounting and finance, which is why I chose to major in it as an undergraduate student. Throughout my education, I learned many valuable skills that I feel will help me succeed in this role. For example, I understand the importance of following regulations and standards when conducting audits. I also have several years of professional experience working as an external auditor, which has given me the opportunity to work on multiple projects.”

Which industries do you have the most experience in?

This question can help the interviewer understand your background and experience. It can also help them decide if you have any industry-specific knowledge that could be beneficial to their company. Use this opportunity to highlight your relevant skills, such as communication or attention to detail.

Example: “I’ve worked in both public and private sectors for most of my career. I find that working with a variety of companies has helped me develop an understanding of how different industries operate. For example, I learned about the importance of internal controls when auditing a large corporation. However, I also gained valuable insight into the challenges small businesses face when auditing a local restaurant.”

What do you think is the most important thing external auditors can do to ensure their organizations are following best practices?

Interviewers may ask this question to see if you have a strong understanding of the importance of following best practices and how they can help organizations improve their processes. In your answer, try to explain what best practices are and why they’re important for businesses to follow.

Example: “I think that external auditors should make sure that the companies they audit are following best practices in all aspects of their business. Best practices are guidelines that many organizations use to ensure they’re operating efficiently and effectively. Following these guidelines can help businesses save money and time while also improving customer satisfaction. I’ve worked with several organizations who were able to implement changes based on my recommendations because they were already following best practices.”

How often should an organization have an audit performed?

An external auditor needs to understand the company’s financial reporting requirements. This question helps an interviewer assess your knowledge of industry standards and expectations. In your answer, explain how you would research this information before starting a new job.

Example: “I believe that organizations should have their financial statements audited at least once per year. However, there are some circumstances where companies may need to perform audits more frequently. For example, if a company is experiencing rapid growth or has recently implemented new accounting procedures, they may want to consider additional audits. I would research these guidelines before accepting a position with a new organization.”

There is a discrepancy between the financial statements and what you saw when performing the audit. What would be your first step?

This question is a great way to test your problem-solving skills and ability to prioritize. It also shows the interviewer how you would react in an emergency situation.

Example: “If there was a discrepancy between the financial statements and what I saw during my audit, I would first try to find out why it happened. If it’s something that can be fixed easily, then I would suggest ways to fix it. However, if it’s something more serious, like fraud or embezzlement, I would immediately report it to my supervisor so they could take action.”