Can you provide an example of a time when you identified a significant risk in a company’s internal controls and what steps you took to address it?

Example of Identifying Significant Risk in a Company's Internal Controls

During my time as an Internal Auditor at XYZ Company, I encountered a situation where I identified a significant risk in the company's internal controls related to financial reporting. Upon noticing irregularities in the financial statements during a routine audit, I immediately raised this concern to the management team.

To address this issue, I took the following steps:

• Conducted a thorough investigation into the root cause of the irregularities.
• Collaborated with the finance team to implement enhanced control procedures and validation checks to prevent future occurrences.
• Provided training sessions to staff members on the importance of maintaining strong internal controls.
• Regularly reviewed and monitored the financial reporting process to ensure compliance with regulatory requirements.

By promptly identifying the risk and taking proactive measures to address it, we were able to strengthen the internal controls and mitigate potential financial risks for the company.