Most finance interviews, whether for audit, financial reporting, FP&A, treasury or analysis, test the same two things. First: do you understand how a transaction moves through the financial statements? Second: given a pack of numbers and limited time, can you reach a clear, defensible conclusion?
This guide is organised around those two tests. Part 1 covers the technical accounting questions that come up across finance roles, with model answers. Part 2 explains the case test formats you are likely to meet and how to approach each one. Role-specific question banks for accountants and analysts, and Excel tests, are covered in separate guides, so they are only touched on here.
Part 1: Technical accounting questions
Interviewers use a small number of questions to check your foundations quickly. They are not looking for textbook definitions. They want to see that you can trace an effect through all three statements and explain it in plain words.
The question you should expect: walk a transaction through the statements
The classic version is: “Depreciation goes up by 100. Walk me through the three statements.” Here is an illustrative answer, assuming a 20% tax rate for simplicity.
| Statement | Effect | Why |
|---|---|---|
| Income statement | Operating profit down 100; tax down 20; net income down 80 | Depreciation is an expense; it reduces taxable profit |
| Cash flow statement | Net income down 80; add back 100 depreciation; cash from operations up 20 | Depreciation is non-cash, so it is added back under the indirect method; the only cash effect is lower tax |
| Balance sheet | Fixed assets down 100; cash up 20; retained earnings down 80 | Assets fall by 80 net, and equity falls by 80, so it balances |
What makes this answer strong is the last column: you show the logic and finish by confirming that the balance sheet balances. Practise the same walk-through for an inventory write-down, a bad debt provision, a new loan and an accrued expense.
The indirect method in that answer comes from IAS 7, the IFRS standard on cash flow statements. The IFRS Foundation’s summary describes it as adjusting profit or loss for non-cash items, deferrals and accruals, and items related to investing or financing cash flows. The alternative, the direct method, discloses major classes of gross cash receipts and payments.
Cash flow classification
Question: “Where does buying a machine appear in the cash flow statement? Repaying a loan? Paying suppliers?”
Model answer: under IAS 7, operating activities are the entity’s principal revenue-producing activities, investing activities are the acquisition and disposal of long-term assets and other investments, and financing activities change the size and composition of equity and borrowings. So the machine is investing, the loan repayment is financing and paying suppliers is operating.
Follow-up to prepare for: interest and dividends. Classification here has historically allowed choices, and the IFRS Foundation notes that 2024 amendments to IAS 7, issued alongside IFRS 18, introduce new requirements for classifying interest and dividend cash flows, and make IFRS 18’s operating profit or loss subtotal the starting point for the indirect method. If asked, say which framework and which year’s rules you are describing.
Revenue recognition: variable consideration
The accountant interview staple is to recite IFRS 15’s five steps and split a bundled sale. Finance interviews for reporting and FP&A roles often go a step further and test the third step, determining the transaction price, with a number that is not yet known.
Question: “We sell to a distributor at 100 per unit. If it buys more than 10,000 units this year, it gets a 5% rebate on everything it bought. It has bought 3,000 units in the first quarter. How much revenue do we book?”
What they are testing: the IFRS Foundation’s summary of IFRS 15 defines the transaction price as the amount of consideration to which an entity expects to be entitled, and says that if the consideration includes a variable amount, the entity must estimate it. A rebate that depends on full-year volume is variable consideration.
Illustrative answer: “I wouldn’t just book 300,000. I’d estimate whether the distributor is likely to pass 10,000 units, using its order history and forecast. If it is, I’d book revenue at 95 per unit and hold the 5% as a refund liability, then revisit the estimate each quarter. If the distributor is unlikely to reach the threshold, revenue stays at 100 per unit. Either way I’d document the judgement, because the auditors will ask.”
Leases
Question: “How did IFRS 16 change lessee accounting, and what does it do to EBITDA?”
Model answer: IFRS 16, effective for periods beginning on or after 1 January 2019, introduced a single lessee model. A lessee recognises a right-of-use asset and a lease liability for leases longer than 12 months, unless the underlying asset is of low value. Instead of a single rental expense, the lessee recognises depreciation of the lease asset and interest on the lease liability, as the IASB’s effects analysis for the standard puts it. That analysis also notes that EBITDA under IFRS 16 excludes all expenses related to leases. So for a company with significant leases that used to be off balance sheet, EBITDA usually rises, while reported debt also rises because of the lease liability.
The EBITDA point is the one that separates candidates. It shows you understand why analysts adjust ratios when comparing companies before and after the change.
Presentation: the IFRS 18 question
IFRS 18 replaces IAS 1 for annual periods beginning on or after 1 January 2027. As of November 2026 it is a natural interview topic for reporting roles. According to KPMG’s summary, it requires income and expenses to be classified into operating, investing and financing categories, adds required subtotals for “operating profit or loss” and “profit or loss before financing and income taxes”, and introduces disclosures for management-defined performance measures. If you are interviewing for a reporting or audit role, be ready to say how your current or last employer is preparing for it, or how you would approach the transition.
Quick-fire questions
Interviewers often add short questions to test breadth. Have one-sentence answers ready:
- What is the difference between profit and cash, and give an example of a profitable company running out of cash.
- What is working capital and what happens to cash when receivables rise?
- What is the difference between a provision and a contingent liability?
- How does a share buyback affect each of the three statements?
- What does a deferred tax liability usually represent?
- Which three numbers would you look at first to judge a company’s financial health, and why?
Part 2: Case tests and how to approach them
Case tests vary more than technical questions. Graduate schemes at large firms often place a written or group exercise inside an assessment centre; experienced-hire processes are usually lighter but more technical, often a single exercise followed by a discussion of your answer.
Format 1: Financial statement analysis pack
What it looks like: two or three years of statements, sometimes with notes, and a question such as “Should we extend credit to this customer?” or “What are the main risks in this business?”
How to approach it:
- Read the question twice before touching the numbers. Write down what decision you are being asked to support.
- Calculate a small set of ratios linked to that decision. For credit: liquidity, leverage, interest cover and cash conversion. For performance: growth, margins, returns.
- Look for movements, not just levels. A margin that has fallen three years in a row matters more than one low figure.
- Check the notes for anything that changes the picture: lease liabilities, contingent liabilities, related-party balances, a change in accounting policy.
- Write a recommendation first, then the three reasons that support it, then the main risk.
Format 2: Variance commentary (common in FP&A and management accounting)
What it looks like: budget against actual for a month or quarter, and a request to “write the commentary for the board pack”.
How to approach it: the analysis itself (ranking variances, splitting price, volume and mix, separating timing from permanent) is covered in our financial analyst interview guide. What a written test adds is the format. Keep to one line per material variance, give the amount and the percentage, state the cause in plain words and say whether it reverses. Finish with a revised full-year view. A commentary that reads “Revenue 4% below budget, timing” gives the reader nothing to act on.
Format 3: Model review
What it looks like: an existing forecast or three-statement model with planted errors, and 30 to 45 minutes to find them. Spreadsheet skills are covered in our separate Excel test guide; this is about the finance logic.
Where errors usually hide:
- A balance sheet that does not balance, or balances only because of a plug figure.
- Sign errors in the cash flow statement, such as an increase in receivables added to cash instead of deducted.
- Depreciation that keeps running after an asset is fully written down.
- Tax charged on a loss, or interest calculated on the wrong debt balance.
- Growth or margin assumptions that jump in one year with no explanation.
List each error with its location, its effect on profit or cash, and the fix. Ranking them by size shows judgement.
Format 4: Written case or memo
What it looks like: an email from a “client” or “manager” with attachments, and 30 to 60 minutes to write a reply. This tests written communication as much as accounting.
How to approach it: answer the question in the first paragraph. Use short headings. Quantify where you can. Flag what you would need to check before finalising. Proofread: PwC UK’s application advice tells candidates to proofread everything they write, including grammar and spelling, and to be concise.
Format 5: Presentation of a case
What it looks like: you receive a case in advance or on the day and present findings to a panel, followed by questions.
How to approach it: three to five slides at most. One slide for the recommendation. Expect the panel to challenge your weakest assumption, so identify it yourself and say how sensitive the answer is to it.
A time plan for a 60-minute case
| Minutes | Task |
|---|---|
| 0 to 5 | Read the question and instructions; write down the decision required |
| 5 to 15 | Skim all the data; mark what is relevant |
| 15 to 35 | Calculations and analysis, focused on the decision |
| 35 to 55 | Write up: recommendation, reasons, risks, next steps |
| 55 to 60 | Check figures and proofread |
The most common failure is running out of time before writing a conclusion. A short answer with a clear recommendation usually beats a long analysis with none.
How professional qualifications show up in interviews
If you hold or are studying for a qualification such as ACCA, CIMA, CPA or the CFA, expect questions drawn from it. Interviewers may pick a paper or topic you passed recently and ask you to apply it to a practical scenario, for example the consolidation adjustments for a subsidiary bought mid-year. Say which level or paper you have completed and be honest about what you have not studied yet.
Your CV should make your qualification status unambiguous: passed, in progress, or expected date. The accountant resume builder and financial analyst resume builder pages show how finance candidates typically present qualifications and systems, and our resume templates keep that information easy for screeners to find.
Preparation plan: one week
- Days 1 and 2: practise five three-statement walk-throughs aloud until you can do each in under two minutes.
- Day 3: revise the standards most relevant to the role: revenue, leases and cash flows for most roles; add IFRS 18 for reporting roles.
- Day 4: take a set of published annual accounts from a company in the employer’s sector and do a timed 45-minute analysis.
- Day 5: write a one-page memo from that analysis and time yourself.
- Day 6: review a small model you built earlier, hunting for the errors listed under Format 3.
- Day 7: rehearse your answers to “Why finance?”, “Why this firm?” and “Tell me about an accounting judgement you had to defend.”
Frequently asked questions
Do I need to know IFRS and US GAAP?
Know the framework the employer reports under. If the job advert mentions both, be ready to name one or two key differences relevant to the role, and say honestly if your experience is in one framework only.
Can I use a calculator in a case test?
It depends on the employer and the format. Read the instructions; if they are unclear, ask before the test starts.
What if I get a technical question wrong?
Say what you would check and how you would find the answer. Interviewers often follow up a wrong answer to see whether you can correct yourself when prompted.
Are case tests used for experienced hires?
Often, especially in FP&A, transaction services and analyst roles. They tend to be shorter and more technical than graduate assessment centre exercises.
Can I use AI tools for take-home cases?
Only if the employer allows it. PwC UK’s application guidance, for example, says AI tools or third-party help are not permitted in its assessments unless explicitly authorised.
Sources
- IAS 7 Statement of Cash Flows, IFRS Foundation
- IFRS 15 Revenue from Contracts with Customers, IFRS Foundation
- IFRS 16 Leases, IFRS Foundation
- IFRS 16 Leases: Effects Analysis (January 2016), IFRS Foundation (IASB), hosted by the Australian Accounting Standards Board
- The advent of IFRS 18, KPMG Lower Gulf
- Early careers: application hints and tips, PwC UK