Walk us through how you would reconcile a material discrepancy in a company's financial statements.
Technical
Technical Accounting
Analytical Thinking
Attention To Detail
This question assesses your technical accounting knowledge and analytical skills, which are critical for identifying and resolving financial discrepancies in compliance with Canadian accounting standards.
How to answer
- Start by explaining the standard reconciliation process (e.g., comparing general ledger entries with source documents)
- Detail how you would investigate potential causes (e.g., data entry errors, misclassification, timing differences)
- Describe how you would verify the discrepancy using supporting documentation
- Explain steps to correct the error while ensuring compliance with ASPE or IFRS
- Highlight how you would communicate findings to relevant stakeholders
What not to say
- Suggesting you would ignore the discrepancy
- Failing to mention compliance standards
- Providing vague answers without specific steps
- Assuming the error is always the company's fault without investigation
Sample answer
“In my internship at Deloitte, I discovered a $12,000 discrepancy in accounts receivable. I traced the issue to a misclassified intercompany transaction and corrected it by adjusting the journal entries. I then prepared a reconciliation report explaining the error and its impact on financial statements, ensuring compliance with ASPE standards.”