Audit-Interview Questions
Audit-Interview Questions
Industry Conditions
1. Is competition in the industry somehow tight? Does this competitive industry environment present
any risk in the entity?
a. What is the total capacity of guests that the hotel can accommodate?
b. What is the price range of all the rooms that the hotel offers?
Regulatory Environment
1. In this specific industry, are there any explicit laws that the company should observe?
2. Does the Local Government Unit impose regulations pertaining to this industry?
3. What is the applicable tax that the company uses?
Nature of the Entity
1. Describe the business/company.
2. What is the form of the organization?
Business Operations
1. What are the major sources of revenue?
2. Services and Markets:
a. Who are the major customers?
b. What are the terms of payment?
c.What are your marketing strategy and objectives?
6. Who are your major suppliers? What are the terms of payment to them?
Financial Reporting
1. What are the accounting principles and industry-specific practices that the company
adapted?
2. What are the policies and procedures for recognizing revenue and cash receipts?
3. What are the policies and procedures for recognizing disbursements?
4. Does the company have a computer based system for all the transactions?
5. How does the company keep the inventories?
Control Environment
2. What are the policies and procedures for authorizing and approving transactions?
3. Does the company continuously provides monitoring and training opportunities needed to attract,
develop, and retain sufficient and competent personnel?
4. Does the company establish performance measures and goals which are periodically reviewed?
Risk Assessment
1. Does the management establish a materiality threshold for the purpose of identifying significant
accounts and disclosures?
Control Activities
2. Does the management periodically review system privileges and access controls to the database?
5. Does the company have external auditors? If yes, what is the company's response to the deficiencies
reported by them?