25 Internal Audit Manager Interview Questions and Answers

Internal auditors are the financial police of a company. They work behind the scenes to ensure that all financial operations are conducted in an ethical and legal manner. They also work to protect the company from financial fraud and other risks.

If you want to become an internal auditor, you first need to pass an interview. The interviewer will ask questions to assess your skills, experience, and knowledge. In this article, we will list some of the most common internal auditor interview questions and answers.

1. Are you familiar with the International Standards for Internal Audit?

The International Standards for Internal Audit (ISIA) is a set of standards that the IIA developed to help internal auditors perform their jobs more effectively. The interviewer may ask this question to see if you are familiar with these standards and how they can benefit your organization. In your answer, explain why you think it’s important to follow ISIA standards when performing an internal audit.

Example: “Yes, I am very familiar with the International Standards for Internal Audit. I have been working in internal audit for over 10 years and have a deep understanding of these standards. In my current role as an Internal Audit Manager, I regularly review processes to ensure they are compliant with the International Standards for Internal Audit. I also provide guidance to staff on how to best adhere to these standards.

I understand that the International Standards for Internal Audit are constantly evolving and I stay up-to-date on any changes or updates. I make sure that all members of my team are aware of any changes so that our audits remain compliant.”

2. What are some of the most important qualities for a successful internal audit manager?

This question can help the interviewer determine if you have the qualities they’re looking for in an internal audit manager. Use your answer to highlight some of the most important qualities and how you possess them.

Example: “Successful internal audit managers possess a variety of important qualities. First and foremost, they must have excellent organizational skills in order to effectively manage the various tasks associated with their role. They should also be detail-oriented and able to identify potential risks or areas for improvement within an organization. Furthermore, successful internal audit managers need to have strong communication skills in order to effectively communicate findings and recommendations to stakeholders. Finally, they must have strong analytical skills in order to interpret data and draw meaningful conclusions from it.”

3. How would you describe the relationship between the internal audit department and the risk management department?

The interviewer may ask this question to assess your understanding of the internal audit department’s relationship with other departments within a company. Use your answer to describe how you would work with risk management staff and explain why it is important for these two departments to collaborate.

Example: “The relationship between the internal audit department and the risk management department is an important one. Internal auditors are responsible for providing independent assurance that the organization’s risk management processes are effective and efficient. They provide objective assessments of the effectiveness of risk management activities, identify potential risks, and recommend corrective actions to improve risk management practices.

At the same time, the risk management department is responsible for identifying, assessing, and managing organizational risks. The two departments must work together in order to ensure that all risks are identified and managed appropriately. Risk management should be informed by the findings of the internal audit team, while internal audit should use the information provided by the risk management team to inform their own assessments. This collaboration ensures that both teams can do their jobs effectively and efficiently.”

4. What is your experience with leading audits of financial statements?

Internal auditors often lead audits of financial statements, and the interviewer may ask this question to learn more about your experience with this process. Use your answer to describe a time when you led an audit of financial statements and how you managed the project.

Example: “I have extensive experience leading audits of financial statements. I have been an Internal Audit Manager for the past five years, and during this time I have successfully completed numerous audits of financial statements. My approach to these audits is to ensure that all relevant regulations are being followed, while also ensuring that the company’s internal controls are adequate. I am well-versed in both US GAAP and IFRS standards, which allows me to provide a comprehensive review of the financial statements.

In addition, I have experience working with external auditors on joint audit engagements. This has allowed me to gain insight into how they conduct their audits, as well as develop relationships with them. I believe my knowledge and experience make me an ideal candidate for this position.”

5. Provide an example of a time when you identified a risk within your previous employer’s operations and recommended a solution to address it.

Internal auditors often identify risks within their organization’s operations and recommend solutions to mitigate them. This question allows the interviewer to assess your problem-solving skills, critical thinking abilities and ability to work with others. In your answer, describe a specific example of how you identified a risk and developed a solution that helped improve your previous employer’s operations.

Example: “At my previous employer, I identified a risk in the way they were handling their accounts receivable process. Specifically, there was no system in place to track customer payments and ensure that all invoices were paid on time. This posed a significant financial risk for the company as it could lead to late payments or even defaulted customers.

To address this issue, I recommended implementing an automated accounts receivable system. This would allow us to keep better track of customer payments and make sure that all invoices were being paid on time. My recommendation was accepted by senior management and implemented successfully. As a result, we saw improved cash flow and fewer overdue payments.”

6. If hired, what area of our company’s operations would you like to focus your audits on initially?

This question is an opportunity to show your knowledge of the company and its operations. It also gives you a chance to demonstrate how you would use your skills to benefit the organization.

Example: “If I were to be hired as the Internal Audit Manager, my initial focus would be on assessing the internal control environment. This includes evaluating the effectiveness of risk management processes and procedures, ensuring compliance with applicable laws and regulations, and identifying any potential areas of financial or operational improvement.

I believe this is an important area to start with because it helps set the foundation for a successful audit process. By understanding how the company operates and where its weaknesses are, we can develop strategies to improve operations and ensure that all risks are properly managed. Furthermore, by analyzing the current control environment, we can identify any gaps in existing policies and procedures and make recommendations for improvements.”

7. What would you do if you noticed employees were not following company policies or procedures?

Internal auditors are responsible for ensuring employees follow company policies and procedures. This question helps employers understand how you would handle this situation if it ever occurred. In your answer, explain what steps you would take to ensure the employee understands the policy or procedure.

Example: “If I noticed employees were not following company policies or procedures, my first step would be to investigate the situation. I would review any relevant documents and speak with the individuals involved to gain a better understanding of what is happening. After gathering all the necessary information, I would then meet with the appropriate stakeholders to discuss the issue. During this meeting, I would present my findings and recommend solutions that are in line with the company’s policies and procedures. Finally, I would ensure that the corrective action plan is implemented properly and followed up on regularly.”

8. How well do you understand our company’s legal or regulatory obligations?

Internal auditors must understand the legal and regulatory obligations of their company. This question is your opportunity to show that you have a solid understanding of these requirements. You can answer this question by explaining how you would ensure compliance with any regulations or laws.

Example: “I understand that it is important for any company to comply with all legal and regulatory obligations. As an Internal Audit Manager, I have extensive experience in understanding the complexities of various laws and regulations. I have a strong background in researching and interpreting relevant legislation and ensuring compliance with applicable laws.

I am also familiar with the different types of audits that are necessary to ensure compliance with these laws and regulations. I have conducted internal audits on many occasions, including reviews of financial statements, operational processes, and risk management systems. My experience has enabled me to identify areas of non-compliance and develop strategies to address them.

Furthermore, I have developed relationships with external auditors and regulators to ensure that our company meets its legal and regulatory obligations. I have worked closely with them to review our policies and procedures and provide guidance on how to improve our compliance efforts.”

9. Do you have experience working with international companies?

Internal auditors often travel to different locations within the company or even internationally. The interviewer may ask this question to learn more about your experience working with people from other countries and cultures. Use your answer to highlight any international experience you have, especially if it relates to internal auditing.

Example: “Yes, I do have experience working with international companies. During my time as an Internal Audit Manager, I had the opportunity to work with clients from all over the world. This included conducting audits in different countries and understanding their unique regulations and laws. My ability to quickly adapt to new cultures and environments allowed me to successfully complete these audits without any issues. In addition, I also developed strong relationships with my colleagues abroad which enabled us to collaborate effectively on projects.”

10. When performing an audit, what is your process for selecting a random sample of employees or processes to review?

Internal auditors must be able to select a random sample of employees or processes to review in order to ensure they are getting an accurate picture of the company’s financial health. The interviewer may ask this question to assess your ability to make important decisions and use critical thinking skills. In your answer, describe how you would go about selecting a random sample for internal audits.

Example: “When performing an audit, I typically start by assessing the scope of the project. This includes understanding what processes and employees need to be reviewed in order to meet the objectives of the audit. Once this is established, I create a sampling plan that outlines the criteria for selecting a random sample of employees or processes to review.

The selection process usually involves using statistical methods such as stratified random sampling or systematic sampling. These techniques allow me to ensure that the sample is representative of the population being audited, while also ensuring that it remains unbiased. In addition, I may use risk-based sampling if there are particular areas of concern that need to be addressed.”

11. We want to improve our internal processes to reduce waste and increase efficiency. What are some areas of our operations that you would focus on initially?

This question is an opportunity to show your knowledge of the company’s operations and how you would apply your skills as an internal auditor. You can use examples from previous experience or research the company’s website, annual reports and other public documents to find areas that may be inefficient or wasteful.

Example: “I believe that the first step in improving any internal process is to assess the current state of operations. This includes conducting a thorough review of existing policies, procedures and processes to identify areas for improvement. Once identified, I would focus on those areas with the greatest potential for cost savings or increased efficiency.

For example, I would look at how resources are allocated within the organization, as well as how tasks are delegated and tracked. I would also examine the data collection and reporting systems used to measure performance. Finally, I would evaluate the effectiveness of the communication channels used to ensure that everyone involved in the process understands their roles and responsibilities. By taking these steps, I am confident that I can help your organization reduce waste and increase efficiency.”

12. Describe your experience with using auditing software or other technology tools to complete your work.

Internal auditors use a variety of software and technology tools to complete their work. The interviewer may ask this question to learn more about your experience with using these types of tools. Use your answer to describe the type of software or tools you’ve used in the past and how they helped you perform your job duties.

Example: “I have extensive experience with auditing software and other technology tools. In my current role as Internal Audit Manager, I use a variety of software programs to complete audits efficiently and accurately. For example, I utilize ACL software for data analysis, which allows me to quickly identify anomalies in financial statements or transactions. I also use IDEA software to document audit tests and results. This helps ensure that all the necessary information is captured during an audit. Finally, I am proficient in Microsoft Office Suite applications such as Excel and Access, which I use to create reports and presentations for stakeholders.”

13. What makes you an ideal candidate for this job?

Employers ask this question to learn more about your qualifications and why you’re the best person for the job. Before your interview, make a list of reasons why you are qualified for this role. Consider including any certifications or education you have that apply to this position. You can also include any relevant work experience you have.

Example: “I believe I am the ideal candidate for this job because of my extensive experience in internal auditing. I have worked as an Internal Audit Manager for over five years and have successfully managed a team of auditors to ensure that all financial processes are compliant with regulations. My expertise includes developing audit plans, conducting risk assessments, performing audits, and providing recommendations on how to improve internal controls.

In addition to my technical skills, I also possess strong interpersonal and communication abilities. I’m able to effectively collaborate with colleagues from different departments and build relationships with stakeholders. I’m confident that I can provide valuable insights into the organization’s operations and help identify areas for improvement. Finally, I am highly organized and detail-oriented which allows me to stay focused on the task at hand and complete projects efficiently.”

14. Which industries or companies have you worked for in the past that are similar to our organization?

This question is a great way to learn more about the candidate’s experience and how it relates to your company. It also helps you understand if they have any relevant industry knowledge that can help them succeed in their role as an internal auditor. When answering this question, try to highlight similarities between your organization and those of previous employers.

Example: “I have worked in the internal audit field for over 10 years, and I have had the opportunity to work with a variety of industries and companies. Most recently, I was an Internal Audit Manager at a large retail company where I oversaw all aspects of their financial reporting process. Prior to that, I held similar positions at two different manufacturing companies, one specializing in medical devices and the other in consumer electronics.

My experience has allowed me to gain valuable insight into the unique challenges faced by each industry, as well as the best practices necessary to ensure compliance with regulatory requirements. As such, I believe my past experiences make me uniquely qualified to be your next Internal Audit Manager. I am confident that I can apply the knowledge and skills I have acquired to help you achieve your goals.”

15. What do you think is the most important thing an internal audit manager can do to help prevent financial or operational problems from occurring?

This question can help the interviewer get an idea of your leadership skills and how you plan to improve the internal audit department. Your answer should include a few strategies that you think are important for preventing financial or operational problems from occurring, along with why they’re important.

Example: “As an Internal Audit Manager, I believe the most important thing I can do to help prevent financial or operational problems from occurring is to ensure that all processes and procedures are being followed correctly. This includes conducting regular audits of internal controls, reviewing existing policies and procedures, and making sure they are up-to-date with current regulations. Furthermore, I would also look for any potential areas of risk and develop strategies to mitigate them before they become a problem. Finally, I would work closely with management to ensure that any changes in process or procedure are communicated effectively and implemented properly.”

16. How often should an internal audit be performed?

Internal audits are an important part of the internal audit process. The interviewer may ask this question to learn more about your knowledge of how and when internal audits should be performed. In your answer, explain that internal audits can be done on a regular basis or as needed. Explain that you would consider factors such as company size, industry and regulatory requirements before deciding when to perform an internal audit.

Example: “The frequency of an internal audit should be determined by the organization’s risk profile, industry regulations, and other factors. Generally speaking, a comprehensive internal audit should be conducted at least once per year. However, depending on the size and complexity of the organization, more frequent audits may be necessary. For example, if the organization is subject to specific regulatory requirements or has recently experienced significant changes in its operations, additional audits may be required.

In addition to annual audits, organizations should also consider conducting periodic reviews throughout the year. These reviews can help identify potential risks and ensure that policies and procedures are being followed. Finally, it is important to keep in mind that the scope of each audit should be tailored to the individual needs of the organization.

As an Internal Audit Manager, I understand the importance of developing a comprehensive audit plan that meets the unique needs of the organization. I am confident that my experience and knowledge will enable me to develop an effective audit strategy for your organization.”

17. There is a discrepancy between the company’s financial statements and its actual financial situation. What is your initial reaction?

This question is an opportunity to show your problem-solving skills and ability to think critically. Your answer should include a step-by-step process of how you would investigate the discrepancy, including what steps you would take to ensure that it doesn’t happen again.

Example: “My initial reaction to a discrepancy between the company’s financial statements and its actual financial situation is one of concern. As an Internal Audit Manager, I understand that this could be indicative of a larger issue within the organization. My first step would be to investigate further in order to determine the cause of the discrepancy. This includes looking into any discrepancies in the accounting system, reviewing internal controls, and assessing the accuracy of the financial information reported.

Once I have identified the root cause of the discrepancy, I can then work with the appropriate stakeholders to develop a plan for correcting it. This may include implementing new policies or procedures, making changes to the accounting system, or providing additional training to staff. Ultimately, my goal is to ensure that the company’s financial statements accurately reflect its true financial position.”

18. How do you ensure that the audit is conducted in an unbiased manner?

Internal auditors must be able to conduct audits in a fair and unbiased manner. This question helps the interviewer determine how you will ensure that your team members are not influenced by personal relationships or other factors when conducting an audit. Use examples from past experiences where you were able to remain impartial during an audit.

Example: “I understand the importance of conducting an audit in an unbiased manner. To ensure this, I take a few steps during the process. First, I make sure that all team members are aware of their roles and responsibilities prior to beginning the audit. This helps to reduce any potential bias as everyone is clear on what they need to do.

Next, I review the audit plan with my team to ensure that it covers all areas of the audit and that the objectives are clearly outlined. Finally, I encourage open communication among team members throughout the audit process so that any potential biases can be identified and addressed quickly. By taking these steps, I am confident that I can conduct audits in an unbiased manner.”

19. What processes or techniques do you use to evaluate internal controls and procedures?

The interviewer may ask you this question to understand how you use your skills and expertise to evaluate internal controls and procedures. Use examples from past projects or experiences to explain the steps you take when evaluating internal controls and procedures.

Example: “I have extensive experience in evaluating internal controls and procedures. My approach to this process is twofold: first, I use a risk-based evaluation system that assesses the potential risks associated with each control or procedure. This helps me identify areas of weakness and prioritize them for further review. Second, I employ a variety of analytical techniques such as trend analysis, benchmarking, and data mining to evaluate the effectiveness of existing controls and procedures. By combining these methods, I am able to gain a comprehensive understanding of the organization’s internal control environment and make recommendations for improvement.”

20. Describe a time when you had conflicting views with management during an audit and how you resolved it.

Internal auditors often have to present their findings and recommendations to management. This question helps the interviewer understand how you handle disagreements with your superiors. Use examples from past experiences where you disagreed with a manager but still managed to work together to reach a compromise or solution.

Example: “I had an experience during an audit where I had conflicting views with management. The issue was that the management team wanted to take a certain course of action, while my internal audit team and I felt it would be more beneficial to take another approach.

In order to resolve this conflict, I took the time to explain our reasoning for taking the alternative route. I also provided evidence from previous audits that showed why our approach was better suited for the situation. After listening to both sides, the management team agreed to follow our recommendation.”

21. What methods do you use to identify areas of potential fraud or abuse?

Internal auditors use a variety of methods to identify areas where fraud or abuse may occur. Employers ask this question to make sure you have the necessary skills and experience to perform your job well. In your answer, explain two or three different methods you would use to find these issues within their company.

Example: “When it comes to identifying areas of potential fraud or abuse, I use a combination of methods. First and foremost, I rely on my experience in the field and knowledge of best practices. This helps me identify any red flags that may be present.

I also utilize data analytics tools to look for patterns or anomalies in financial records. By analyzing large datasets, I can quickly spot any irregularities that could indicate fraudulent activity. Finally, I conduct interviews with relevant personnel to gain further insight into potential issues. This allows me to get an understanding of how processes are being carried out and if there is anything suspicious going on.”

22. Do you have experience developing risk-based audit plans?

Internal auditors use risk-based audit plans to prioritize their work. This question helps the interviewer understand your experience with this process and how you apply it in your daily work. Use examples from your past experience to explain how you developed a risk-based audit plan and what factors influenced your decisions.

Example: “Yes, I have extensive experience developing risk-based audit plans. In my current role as Internal Audit Manager, I am responsible for creating and executing a comprehensive audit plan that assesses the effectiveness of internal controls and identifies areas of potential risk. My approach to creating an effective audit plan includes gathering information from stakeholders, analyzing data, and identifying key risks. Once identified, I develop strategies to mitigate those risks and ensure compliance with applicable laws and regulations.

I also keep up to date on industry trends and best practices in order to identify emerging risks and create proactive solutions. My experience has enabled me to successfully design and implement audit plans that are tailored to each organization’s specific needs and objectives. I believe this experience makes me well suited for the position you are offering.”

23. How would you go about training new staff members on auditing procedures?

Internal auditors often train new staff members on their internal audit procedures. This question helps the interviewer assess your training skills and how you would help others learn about internal auditing processes. Use examples from previous experience to highlight your ability to teach others.

Example: “Training new staff members on auditing procedures is an important part of my job as an Internal Audit Manager. My approach to training starts with understanding the individual’s background and experience in order to tailor the training accordingly. I like to start by providing a comprehensive overview of the audit process, including the different types of audits, their objectives, and the steps involved in each type. This helps to ensure that everyone has a common understanding of the fundamentals before diving into more specific topics.

I then focus on teaching the practical skills needed for successful auditing, such as how to plan and execute an audit, document findings, and communicate results. To do this, I use a combination of lectures, hands-on exercises, and real-world case studies to give trainees a better understanding of the concepts they are learning. Finally, I provide feedback throughout the training process so that any issues can be addressed quickly and effectively.”

24. In your opinion, what is the most important factor for ensuring successful audits?

This question is an opportunity to show your knowledge of internal auditing and how you apply it. You can use examples from your experience to explain what you think is the most important factor for ensuring successful audits, and you can also discuss why this factor is so important.

Example: “In my opinion, the most important factor for ensuring successful audits is having a well-defined audit process. This includes establishing clear objectives and expectations, setting up effective communication channels between auditors and stakeholders, and developing an efficient workflow that allows for timely completion of tasks. By following a structured approach to auditing, it ensures that all relevant information is gathered and analyzed in order to make accurate conclusions. Furthermore, it also helps to ensure that any potential risks or issues are identified and addressed quickly. Finally, having a strong team of experienced auditors who understand the importance of quality control and follow best practices is essential for achieving successful audits.”

25. Explain a situation where you successfully implemented changes based on your findings from an audit.

This question can help the interviewer understand your ability to implement change and how you approach implementing changes in a company. Use examples from previous work experience where you successfully implemented changes based on your internal audit findings.

Example: “I recently completed an audit of a large manufacturing company. During the process, I identified several areas where changes could be made to improve efficiency and reduce costs. After presenting my findings to the executive team, they were eager to implement some of my suggestions.

I worked closely with the leadership team to develop a plan for implementing the changes. We created a timeline and assigned responsibilities to ensure that each step was taken in a timely manner. To ensure that the changes would have the desired effect, we also set up metrics to measure progress.

The changes were successfully implemented and led to significant cost savings for the company. The executive team was pleased with the results and thanked me for my hard work and dedication. This experience demonstrated my ability to identify issues and create solutions that benefit the organization.”