accounting policy consultant Interview Questions and Answers

1. What is your experience with IFRS and US GAAP?

   • Answer: I have [Number] years of experience working with both IFRS and US GAAP. My experience includes [Specific examples, e.g., preparing financial statements under both frameworks, advising clients on convergence issues, conducting due diligence reviews]. I am proficient in applying the relevant standards and interpreting complex accounting pronouncements.

2. How do you stay current with changes in accounting standards?

   • Answer: I regularly monitor updates from the IASB and FASB, including attending webinars, reading industry publications like the Journal of Accountancy and Accounting Today, and participating in professional development courses. I also subscribe to relevant newsletters and utilize online resources to stay informed about changes and their impact.

3. Describe your experience with revenue recognition under IFRS 15 and ASC 606.

   • Answer: I have extensive experience in applying the five-step model of revenue recognition under both IFRS 15 and ASC 606. This includes identifying the contract with a customer, identifying separate performance obligations, determining the transaction price, allocating the transaction price to the separate performance obligations, and recognizing revenue when (or as) the entity satisfies a performance obligation. I've assisted clients in developing robust revenue recognition policies and procedures and have conducted numerous training sessions on the topic.

4. Explain your understanding of lease accounting under IFRS 16 and ASC 842.

   • Answer: I understand that both IFRS 16 and ASC 842 require most leases to be recognized on the balance sheet as right-of-use assets and lease liabilities. I am familiar with the criteria for determining whether a contract is a lease, the different types of leases (e.g., finance leases, operating leases), and the accounting implications for both lessees and lessors. I have experience assisting clients with the implementation of these standards, including the assessment of lease portfolios and the preparation of necessary journal entries.

5. How do you approach a complex accounting issue with no clear guidance?

   • Answer: I follow a systematic approach: I first thoroughly research the issue, referring to relevant standards, interpretations, and industry guidance. If no clear guidance exists, I consider the underlying principles of accounting, applying professional judgment based on the facts and circumstances. I would then document my rationale clearly and transparently, and potentially seek further guidance from professional bodies or other experts if needed.

6. What is your experience with internal controls over financial reporting (ICFR)?

   • Answer: I have experience in assessing and designing ICFR, including performing walkthroughs, testing controls, and documenting findings. I am familiar with frameworks such as COSO and understand the importance of segregation of duties, authorization, and reconciliation in maintaining strong internal controls. I've assisted clients in remediating control deficiencies and preparing management's assessment of ICFR.

7. How would you handle a situation where a client disagrees with your accounting advice?

   • Answer: I would respectfully and professionally explain the reasoning behind my advice, referencing relevant accounting standards and supporting documentation. I would strive to understand their perspective and explore alternative solutions that address their concerns while maintaining compliance. If a resolution can't be reached, I would document the disagreement and my position, potentially escalating the issue to senior management if appropriate.

8. Describe your experience with accounting software and tools.

   • Answer: I am proficient in [List specific software, e.g., SAP, Oracle, Workday, BlackLine]. I have experience using these tools to prepare financial statements, manage accounting data, and perform analytical procedures. I am also comfortable learning new software and adapting to changing technological environments.

9. How would you explain a complex accounting concept to a non-accounting professional?

   • Answer: I would use clear and concise language, avoiding technical jargon. I would start with the big picture, explaining the purpose and relevance of the concept before delving into the details. I would also use analogies and real-world examples to make the concept more relatable and understandable. Finally, I would check for understanding throughout the explanation.

10. Explain the concept of impairment of assets.

    • Answer: Impairment occurs when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use. Impairment requires a reversal of the impairment loss if the recoverable amount increases in subsequent periods, up to the amount of the original impairment loss.

11. What are your experiences with consolidations?

    • Answer: I have extensive experience in preparing consolidated financial statements, including the application of various accounting methods such as the equity method and full consolidation. I understand how to deal with intercompany transactions and eliminations. I am also familiar with different consolidation software packages.

12. Describe your understanding of the going concern principle.

    • Answer: The going concern principle assumes that a business will continue operating for the foreseeable future. This assumption is fundamental to the preparation of financial statements. If there is substantial doubt about an entity's ability to continue as a going concern, the financial statements need to be adjusted accordingly.

13. What is your experience with the preparation of tax returns?

    • Answer: I have experience in preparing [Type of tax returns]. My experience includes understanding and applying relevant tax laws and regulations, reviewing financial statements to gather tax information and working with tax software.

14. What is your understanding of the concept of materiality?

    • Answer: Materiality refers to the significance of an item in influencing the decisions of users of the financial statements. An item is material if omitting it or misstating it could reasonably be expected to influence the decisions of users. Materiality is a matter of professional judgment.

15. How do you handle deadlines and prioritize tasks effectively?

    • Answer: I utilize project management techniques, such as creating detailed project plans with timelines and milestones. I prioritize tasks based on urgency and importance, and I communicate regularly with clients and team members to ensure effective collaboration and timely completion of projects.

16. Describe your experience with financial statement analysis.

    • Answer: I have experience performing various financial statement analysis techniques, including ratio analysis, trend analysis, and benchmarking. I use these analyses to assess financial performance, identify trends, and evaluate financial health.

17. What is your experience with working in a team environment?

    • Answer: I thrive in collaborative team environments. I enjoy sharing knowledge, assisting colleagues, and working together to achieve common goals. I am a strong communicator and actively contribute to team discussions and problem-solving.

18. What are your strengths and weaknesses as an accounting policy consultant?

    • Answer: My strengths include [List specific strengths, e.g., strong analytical skills, attention to detail, excellent communication skills]. My weaknesses include [List specific weaknesses and how you are working to improve them, e.g., time management, delegating tasks – I am actively working on improving my time management skills by using project management software and prioritizing tasks effectively].

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