TECHNICAL QUESTIONS
1. What is auditing? Why is it important?
Answer:
Auditing is an independent examination of financial information of an organization to express
an opinion on whether the financial statements are free from material misstatements. It builds
trust among stakeholders, ensures compliance, and helps detect errors or fraud.
2. Difference between internal and external audit?
Answer:
Internal audit is conducted by the company’s own staff to assess internal controls and
improve operations. External audit is performed by independent auditors to give an opinion
on the fairness of financial statements.
3. Types of audit evidence?
Answer:
Audit evidence can be:
Physical evidence (e.g. stock count),
Documentary evidence (e.g. invoices),
Analytical procedures,
Oral evidence (inquiries), and
Third-party confirmations.
4. What is vouching and verification?
Answer:
Vouching checks the authenticity of transactions by examining supporting documents.
Verification confirms the existence, ownership, and value of assets and liabilities.
5. How is an audit plan prepared?
Answer:
An audit plan is based on understanding the client’s business, identifying risk areas, defining
the scope, allocating responsibilities, and setting a timeline for audit procedures.
6. What is materiality in audit?
Answer:
Materiality is the threshold beyond which missing or incorrect information in financial
statements could influence users’ decisions. Auditors use it to focus on important areas.
7. Difference between trial balance and balance sheet?
Answer:
A trial balance lists all ledger balances to check arithmetic accuracy.
A balance sheet is a financial statement showing a company’s assets, liabilities, and equity at
a specific date.
8. Main steps of an audit process?
Answer:
1. Planning and risk assessment
2. Understanding internal controls
3. Performing audit procedures
4. Evaluating evidence
5. Reporting audit findings
9. Substantive procedures vs. test of controls?
Answer:
Test of controls checks the effectiveness of internal controls.
Substantive procedures directly test the accuracy of financial statements through details and
analytical tests.
10. What is audit risk? How is it calculated?
Answer:
Audit risk is the risk of giving an incorrect audit opinion.
Audit Risk = Inherent Risk × Control Risk × Detection Risk
🧾 PRACTICAL / SCENARIO QUESTIONS
11. Client not cooperating – what would you do?
Answer:
I would maintain professionalism, try to build rapport, explain the importance of cooperation,
and escalate to my supervisor if needed.
12. What if you find a discrepancy in accounts?
Answer:
I would investigate further by reviewing supporting documents, discuss with the accounting
team, and report it to my senior for guidance.
13. How would you audit cash?
Answer:
I would verify cash balances with bank statements, perform bank reconciliations, check petty
cash records, and request bank confirmations.
14. You notice possible fraud – what steps will you take?
Answer:
I would not confront anyone directly. I would gather evidence, document my observations,
and immediately report to the audit supervisor or manager.
💬 BEHAVIORAL & HR QUESTIONS
15. Tell me about yourself.
Answer:
I am Arslan Ali, a finance graduate with strong interest in audit and accounting. I have basic
knowledge of financial reporting and auditing standards. I’m detail-oriented, disciplined, and
eager to begin my career in a reputable organization like Manan Builders as an Audit Trainee.
16. Why do you want to work as an audit trainee?
Answer:
I want to build a solid foundation in audit and understand how financial systems work in real
organizations. This role offers practical exposure, learning opportunities, and room to grow
professionally.
17. Why Manan Builders?
Answer:
Manan Builders is known for its quality work in the construction sector. I want to be part of a
reputed company where I can contribute and learn audit procedures in a real, project-based
environment.
18. Where do you see yourself in 5 years?
Answer:
In five years, I see myself as a qualified auditor with hands-on experience, possibly holding a
senior audit or finance role, contributing to internal controls and strategic decisions.
19. How do you handle deadlines or pressure?
Answer:
I stay organized, prioritize tasks, and avoid procrastination. I remain calm and focused under
pressure and seek help from teammates when needed.
20. Tell us about a time you worked in a team.
Answer:
During university, I worked in a team project where I handled financial analysis. I
coordinated tasks, supported team members, and helped deliver the project on time with good
results.
21. How do you manage confidential information?
Answer:
I understand the importance of confidentiality in audit. I never share client or company data,
even with friends or family, and always follow the company’s data protection policies.
🏢 COMPANY-SPECIFIC / INDUSTRY QUESTIONS
22. What do you know about Manan Builders?
Answer:
Manan Builders is a leading construction company involved in various residential and
commercial projects in Pakistan. They are known for quality, professionalism, and timely
project delivery.
23. Why should we hire you over other candidates?
Answer:
I am eager to learn, have strong attention to detail, and a solid foundation in audit and
accounting principles. I am committed, reliable, and ready to give my best to this opportunity.
24. How does auditing differ in the construction sector?
Answer:
Construction involves long-term contracts, project-based accounting, and high-value
transactions. Auditors must focus on revenue recognition, contract costs, work-in-progress,
and compliance with project timelines and budgets.
