A solid commercial baseline by service line; you are not expected to be qualified.
“Audit: a client's inventory turnover has slowed sharply. What is the risk, and how would you test for it?”
What they test. Basic financial-statement analysis and audit risk.
Weak answer. 'It means they are not selling enough, so revenue will fall.'
Strong answer. Identifies potential obsolescence and overvaluation on the balance sheet (lower of cost and net realisable value), and proposes testing post-year-end sales prices or inspecting stock condition.
“Tax: what is the difference between tax avoidance and tax evasion, and why does it matter for a firm like GT?”
What they test. Professional ethics and legal frameworks.
Weak answer. Confusing the two or treating them as the same.
Strong answer. Defines avoidance as legal minimisation and evasion as illegal non-payment, and explains GT must advise within the law while upholding ethics to protect its reputation and meet HMRC guidelines.
“Advisory: walk me through the three statements and how an increase in depreciation affects them.”
What they test. Core corporate-finance proficiency.
Weak answer. Stating depreciation cuts profit but not explaining the links or cash impact.
Strong answer. Income statement: higher depreciation cuts EBIT and pre-tax income. Cash flow: net income is lower but depreciation is added back, and the tax shield lifts operating cash. Balance sheet: net PP&E falls and cash rises from tax savings, keeping the statements in balance.
“Consulting: a client wants to move a regional manufacturing business into e-commerce. How would you structure your approach?”
What they test. Structured thinking and framework application.
Weak answer. A disorganised stream of ideas jumping straight to 'run social media ads.'
Strong answer. Applies a clear framework (Market, Competitors, Capabilities, Economics): market size and growth, competitor landscape, technology investment, and revenue versus implementation cost.