QUESTION
TECHNICAL
Can you explain the audit process ?
What is the key component of a financial
statement audit ?
What is the purpose of substantive
procedures in an audit ?
Explain the differences between financial
statement audit and internal audit ?
ANSWER
The audit process involves several key
stages, starting with planning, where we
assess the client's business, identify risks,
and develop an audit strategy. Then, we
move on to the fieldwork phase, where we
test internal controls and gather evidence to
support our audit opinions. After that, we
analyze the findings, make any necessary
adjustments, and finally, we issue our audit
report.
The key component of a financial statements
audit is risk assessment. Before conducting
any audit procedures, it's essential to
thoroughly assess the risks associated with
the client's business and industry. This
involves understanding the client's internal
controls, identifying areas of potential
misstatement or fraud, and evaluating the
overall risk of material misstatement in the
financial statements. By conducting a
comprehensive risk assessment, auditors can
tailor their audit procedures to focus on areas
of highest risk, ensuring that the audit
provides meaningful assurance to
stakeholders
The purpose of substantive procedures in an
audit is to gather evidence to support the
accuracy and completeness of the amounts
and disclosures in the financial statements.
These procedures involve directly examining
transactions, account balances, and
supporting documentation to ensure that the
financial information reported by the client is
reliable and free from material misstatement.
FSA IA
Checks accuracy of Evaluates internal
financial statements controls, risk
for external management, and
 stakeholders. operational
efficiency.

Focuses on Focuses on
ensuring financial improving internal
information is processes and
accurate and controls.
compliant with
accounting
standards.

Helps provide Helps management

assurance to improve operations
investors, creditors, and achieve
and regulators. organizational
objectives.

How do you assess the risk of material
misstatement during an audit engagement ?
To assess the risk of material misstatement,
auditors evaluate factors like the client's
industry, internal controls, and financial data
for potential errors or fraud. They also
consider external factors and use
professional judgment to prioritize areas of
higher risk, focusing on audit procedures
where misstatements are more likely to occur
and have a significant impact.

Behavioral

Tell us about a time when you worked Bagitahu JPK experiences

effectively as part of a team.

How do you prioritize tasks and manage your
time effectively in a fast-paced environment?
In a fast-paced environment, I prioritize tasks
by assessing their urgency and importance,
using tools like to-do lists and calendars. I
break down tasks into manageable steps and
allocate specific time slots to work on them. I
regularly reassess priorities and delegate
tasks when necessary to ensure efficiency
and meet deadlines.

Describe a situation where you had to deal I once had a team member who was doing
with a challenging client or team member. his part of the task at the very last minute
How did you handle it? which affected our project timelines. I
addressed the issue directly with him,
expressing concern about the impact on the
 group productivity. This open communication
helped improve the team member's
performance and strengthened our
collaboration.

Situational

How would you handle a situation where you

disagree with a senior team member's
approach to an audit procedure?

If you were assigned multiple audit tasks with

tight deadlines, how would you prioritize and
manage your workload?

What would you do if you encountered

resistance from a client when requesting
information during an audit?