How do you prepare the books for the statutory audit, and how do you work with the auditors?
What the interviewer wants to hear
- Closes books and reconciles all key balances
- Prepares schedules and supporting documents for each account
- Shares a prepared by client list on time
- Responds to queries and sample requests quickly
- Discusses and books agreed audit adjustments
Model answer
Before the auditors arrive, I make sure the year-end close is complete and every key balance is reconciled: bank, receivables, payables, inventory, fixed assets, GST, TDS, payroll and intercompany. For each line in the trial balance I prepare a schedule that ties to the ledger, with supporting documents like contracts, invoices and bank statements filed in one place. Auditors usually send a prepared-by-client list, so I agree timelines and deliver against it. I help them send balance confirmations to banks, customers and suppliers. During fieldwork I respond to sample requests and queries the same day where possible, and I explain judgement areas like provisions and revenue cut-off with documentation. When they propose adjustments, I discuss them with management, book the agreed ones and keep a record. After the audit, I note the issues raised so next year’s close fixes them earlier.
Can you answer it under time pressure?
Take a timed medium round and get scored on every answer.
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