GES Promotion Interview Questions & Answers (Auditors)

QUESTION 1

HOW IS THE INTERNAL AUDITOR DIFFERENT FROM THE EXTERNAL AUDITOR OR IN WHAT WAYS MAY INTERNAL AUDITING BE DIFFERENT FROM EXTERNAL AUDITING?

1. The Internal Auditor is part of management and owes allegiance to the department or organization in which he works but the External Auditor is an independent person.

2. The Internal Auditor can work only within his organization but the External Auditor can work in any government organization or corporate body which the law permits him.

3. The Internal Auditor reports administratively to the principal spending officer or management and functionally to the Audit Committee of his organization whereas the Auditor General (External Auditor) reports to Parliament.

 

QUESTION 2

WHAT ARE SOME OF THE FACTORS WHICH LIMIT THE SCOPE OF OPERATIONS OF THE INTERNAL AUDITOR?

The factors which limit the scope of operations of the Internal Auditor include:

1. Managerial ride or control,

2. Limited resources – transport, equipment, financial, etc.,

3. Possible collusion with Stores or Accounts personnel because of proximity

4. Non- cooperation from the Accountant – not making records available for auditing.

 

QUESTION 3

WHAT IS THE BASIC PURPOSE OF AUDIT?

The basic purpose of audit is to ensure adherence to basic financial regulations and procedures and to make recommendations for improvement.

 

QUESTION 4

WHAT ARE THE QUALITIES OF A GOOD AUDIT REPORT?

The qualities of a good audit report include the following:

1. It must be concise
2. It must be relevant
3. It must be timely
4. It must be fair
5. It must be reliable
6. It must be evidence-based

 

QUESTION 5

WHAT ARE THE COMPONENTS OF AN AUDIT REPORT?

The components of an audit report include

1. Heading
2. Introduction
3. Scope of Audit
4. Names of auditees
5. Summary of findings
6. Details of findings -criteria, causes, conditions, effects
7. Recommendations
8. Follow up report on previous audit
9. Conclusion / acknowledgement

 

QUESTION 6

IN PLANNING AND STRATEGIZING FOR AN AUDIT WHAT FACTORS DO YOU HAVE TO CONSIDER?

In planning and strategizing for an audit the following factors should be considered:

1. Personnel
2. Resources
3. Nature of department, size and risk areas
4. Time frame

 

QUESTION 7

WHAT IS INVESTIGATION AS AGAINST AUDITING?

1. Investigation goes with terms of reference (TOR) and it’s therefore specific. In auditing the Auditor determines the scope of work.

2. Investigation involves verification of issues already raised but auditing goes with general scrutiny of records / information.

3. Investigation report goes to the entity which constituted the committee but audit report is circulated.

 

QUESTION 8

HOW CAN FRAUD BE PREVENTED OR REDUCED IN AN ORGANIZATION?

Fraud can be prevented or reduced by first identifying the cause then strengthening internal control systems to prevent future occurrence.

 

QUESTION 9

WHAT INFORMATION DO YOU NEED TO CONVINCE YOU THAT THE PURCHASE AND DELIVERY OF A SET OF STORES WERE DONE IN THE RIGHT MANNER?

To be convinced that the purchase and delivery of a set of stores were done in the right manner the following information / documents should be available:

1. Purchase committee / tender committee report and recommendation supported with competitive bidding documents.

2. Award letter from cost centre manager.

3. Acceptance letter from the winner/supplier.

4. S.R.A. covering the delivery of stores.

5. Supplier’s invoice.

6. Waybill

7. Duly signed A&E.I. form and Purchase Order.

 

QUESTOIN 10

HOW WOULD YOU DISTRIBUTE AN AUDIT REPORT ON A SCHOOL?

The distribution of an audit report on a school will be made to the following:

1. The cost centre manager – Head of institution,

2. The Regional Director of Education,

3. The Regional Internal Auditor,

4. The District Director of Education concerned,

5. The District External Auditor concerned,

6. The Chief Internal Auditor

7. The Director – General, G.E.S.

 

QUESTION 11

WHEN CAN WE SAY THAT AN AUDIT OF AN INSTITUTION HAS BEEN COMPLETED?

The audit of an institution can be said to have been completed when:

1. The audit team is satisfied that the trust areas and activities stipulated in the audit programme have been executed,

2. The head of the audit team has satisfactorily reviewed the working papers of the auditors

3. A draft audit report has been prepared and issued to the client to prepare responses to the findings and recommendations of the team

4. There has been an exit conference where management’s responses and comments on findings have been discussed and consensus reached

5. A final report has been written incorporating management’s responses to observations and changes agreed on

6. Copies of the audit report have been distributed to the appropriate officers.

 

QUESTION 12

WHAT FACILITATES THE WRITING OF AN AUDIT REPORT?

The writing of an audit report is based on the evidence gathered during the audit of an institution. The evidence should be supported with the contents of the working papers compiled by the auditors and reviewed by the team leader in the course of the audit.

All findings and recommendations should first be in a draft audit report forwarded to the client and later discussed with him.

Management’s responses to the draft audit report should be incorporated in the final audit report.

 

QUESTION 13

WHAT DO YOU KNOW ABOUT FORENSIC AUDIT?

Forensic audit is carried out when there is evidence or suspicion of fraud. The evidence

could be through discovery, allegation or complaint.

Forensic audit, also termed fraud audit, is carried out by specialized personnel, not necessarily auditors, who should have the knowledge of criminal investigation, gathering of evidence, interviewing of third party witnesses, report writing and testifying as expert witness.

In forensic audit thumbprints and signatures are put to test.

Some specialists used in forensic audit include auditors, accountants, police, engineers and doctors.

 

QUESTION 14

THERE IS A REPORT OF AN INTERNAL AUDITOR HAVING TAKEN SOME MONEY FROM AN INSTITUTIONAL ACCOUNTANT BEFORE GOING IN FOR AN AUDIT OF THE ACCOUNTANT’S SCHOOL. HOW WOULD YOU HANDLE THE ISSUE AS A REGIONAL INTERNAL AUDITOR?

The report should be investigated by the Regional Auditor to ascertain whether there is credible evidence in it.

If the report is confirmed through the investigation the auditor should be withdrawn from the team of auditors and made to appear before a disciplinary committee which will handle the case in line with Ghana Education Service terms and conditions of service.

If the report turns out to be untrue the auditor should be allowed to join the team to carry out the assignment.

 

QUESTION 15

THERE IS A CONFIRMED LOSS OF STOCK AT THE STORES OF AN INSTITUTION BY A BOARD OF SURVEY WHICH HAS ALSO BEEN ACCEPTED BY THE STOREKEEPER. WHAT ACTION WOULD YOU ADVISE TO BE TAKEN BY THE HEAD OF THE INSTITUTION?

1. The Storekeeper should be suspended and investigation conducted to find the cause of the loss.

2. The Assistant Storekeeper, or in his absence the Accountant, should be asked to take over the store after a stock taking in the presence of the suspended Storekeeper.

3. The quantity of items lost should be issued out in the name of the Storekeeper by preparing SIV and same entered in the stores ledger for the balance to agree with the stock at hand.

4. The value of the lost stock should be incorporated in the accounts of the school by passing a journal entry to debit an account of the Storekeeper and credit the stock account.

5. On completion of the investigation the Storekeeper should be arraigned before a disciplinary committee which will determine his fate in line with G.E.S terms and conditions of service.

 

QUESTION 16

WHAT PROCEDURES WOULD YOU FOLLOW BEFORE YOU START AN AUDIT OF AN INSTITUTION?

Before the audit of an institution could start the following procedures would have to be followed:

1. Notice should be given to the auditee so that he could prepare to ensure smooth conduct of work.

2. There should be a preliminary audit study of the institution to know the school environment – know the trust and risk areas.

3. The audit assignment plan should be prepared to distribute schedules during the audit work.

4. The audit programme – procedures / steps to follow during the audit work should be prepared.

5. Finally before the actual audit starts there should be an entry conference where the team will meet the cost centre manager and key officers concerned to brief them on the purpose of the audit, areas to be covered and duration of the audit.

 

QUESTION 17

WHAT IS AN EXIT CONFERENCE AND WHAT IS ITS PURPOSE IN AUDITING?

An exit conference is a meeting between the auditors and the auditee and his concerned officers after the close of field work for the audit team to brief and discuss with the auditee the findings, shortfalls, and recommendations during the audit.

It gives the auditee the chance to verbally and documentarily respond to some of the issues raised in the observations. Where the responses to some of the observations are adequately provided by the auditee, the auditor may strike out such issues from the interim and final reports depending upon the gravity of the shortfalls.

In all cases of audit there should be an exit conference before an audit report is issued out.

 

QUESTION 18

WHAT ARE COMPLIANCE AND SUBSTANTIVE TESTS IN AUDITING?

During auditing various methods are adopted to test the efficiency of operations. Compliance test is done to know whether internal control systems are being followed. Walk through or sample tests are carried out. Internal control questionnaires can also be designed to test the system.

Substantive test is detailed work done to ascertain the credibility of evidence gathered or recorded in the books during the compliance testing. For example the entries in the cash book would have to be cast and balanced off and follow – ups made for issues made to user… units. Both compliance and substance tests are sample – based.

 

QUESTION 19

WHAT IS VALUE FOR MONEY AUDIT?

It is an audit carried out to determine the efficiency, effectiveness and economy of an activity carried out. It determines whether internal control systems were adequately followed, whether the activity achieved its purpose or usefulness and whether cost incurred was economical compared to other prevailing prices.

In the case of construction works performance audit is undertaken from the begining or the project to the end and this requires the services of an architect and quantity surveyor,

 

QUESTION 20

NAME TEN TYPES OF FRAUD WHICH EXIST IN THE FINANCIAL OPERATIONS OF THE PUBLIC SECTOR.

Some of the frauds which exist in the public financial operations include the following:

1. Failure to receipt cash before banking or expending it.
2. Outright theft of cash
3. Suppression of receipt issued for cash
4. Use of fictitious or unofficial receipt to receipt cash
5. Creation of false creditors
6. Undercasting of the receipt cash book and misapplying the difference.
7. Overcasting of the payment cash book
8. Understating of income by manipulating receipts.
9. Transposition of figures.
10. Carbon manipulation
11. Teaming and lading
12. Over-invoicing
13. Failure to take stores on charge and misapplying them
14. Creation or maintenance of ghost names on the payroll and making use of salaries of such people.

 

QUESTION 21

AT WHAT LEVEL OF INVESTIGATION WOULD YOU NEED THE ASSISTANCE OF THE POLICE?

Police assistance would be required if:

1. There is a confirmed fraud and the quantum of the fraud is such that the officer cannot easily make good the amount involved.

2. There is suspicion that the suspect can run away.

3. The suspect has refused to release vital documents relating to the fraud.

In the case of an investigation the issue of reporting should be referred to the appointing authority but where it is in respect of an audit the responsibility would lie with the cost centre manager.

Where the cost centre manager himself is involved the matter should be reported to a superior authority.