Potential hires should be able to explain the different types of entities and how they affect the auditing process. This question can also help you learn about the applicant's knowledge of the industry.
Overview
Potential hires should be able to explain the different types of entities and how they affect the auditing process. This question can also help you learn about the applicant's knowledge of the industry.
Interview Expectations
Detailed understanding of different entities
Ability to explain how each entity affects auditing
Knowledge of what makes each entity unique
Sample Answer
There are three main types of entities: sole proprietorships, partnerships and corporations. Each one has its own set of attributes that affect how it is audited.