I don’t know if i should ask here or no but one interviewer asked me how do know that i recorded the transactions as well as the financial statements correctly according to GAAP?
My answer was the company that i worked for undergo an annual external audit conducted by independent auditors. An unqualified opinion from the auditors provides assurance that our financial statements are presented fairly, in all material respects, in accordance with GAAP.
But looks like they weren’t satisfied.

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I assume they are asking how you personally know it is right. I am pretty sure auditors are not reviewing every single journal entry. You could have a ton of small incorrect entries that would never be detected. I think a better answer would be that you double/triple check every entry/number and you have multiple levels of review in your process

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Reconciliation process as well

Yeah, I’m sorry but you missed the mark on this one. The appropriate response would have been something to the effect that you perform a tie-out of the financials to the GL, ensure equity rolls, consider any one-off unique transactions for Cash flow treatment, perform a variance analysis on financial statements to investigate material fluctuations etc. The financial statements do not belong to the auditors, they belong to management. They’re simply providing reasonable assurance that the financials and notes thereto are fairly stated. Better luck next time.

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I believe this question was to evaluate your thought process on how you know your work is correct. You answered because someone else checked it. Alternatively, I checked it to the best of my ability (example) and asked for assistance or researched anything I did not know.

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The question to this post was what is the ideal response to that question?

Yea you might have botched that one lol

But it’s all good

It’s like if someone asked you. Can you tell me what is less than $100

And you said .. “yes that’s anything less than $100”

lol. You kinda of repeated their question

You should have mentioned that the senior and the manager help you with any items that you’re not familiar with. Since you’re an associate there’s no way your a pro at every area of GAAP.

Idk that’s what I would want to hear. If they’re asking about specific research about a specific FASB code then you’d have to explain if you did that kind of technical accounting

This must be a small company! Nevertheless, there should be checks and balances in place whereas someone else is double-checking/approving the work to ensure compliance and accuracy. I spent a lot of time doing just that, and also doing trend and variance analysis before any reports were prepared or go to management, No one person should be in charge of everything- that’s how companies get into trouble!🤷🏽‍♀️

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