The client’s CFO pressures you to sign the audit report today, but key evidence on a large provision is still pending. What do you do?
What the interviewer wants to hear
- Does not sign without sufficient appropriate evidence
- Explains clearly what is outstanding and why it matters
- Escalates to the engagement partner and if needed those charged with governance
- Recognises the intimidation threat and ethics duties
- Considers options like extending timelines or modifying the opinion
Model answer
I would stay calm and polite but would not agree to sign without the evidence. The report date must be when we have sufficient appropriate evidence, and signing early would breach the standards and the code of ethics. Pressure like this is an intimidation threat, so I would inform my engagement partner immediately. I would explain to the CFO exactly what is outstanding, for example the legal opinion and the calculation behind the provision, why it matters to the opinion, and what we can do to finish quickly, such as working late or accepting draft documents now with signed copies later. If the deadline is regulatory, the partner may discuss it with the audit committee, which oversees the audit. If the evidence truly cannot be obtained, the right outcome is a modified opinion, not a clean one signed early. I would document the pressure and the discussions in the file.
Can you answer it under time pressure?
Take a timed hard round and get scored on every answer.
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