Footnotes
Footnotes are detailed explanations or references that appear at the bottom of financial statements and reports. They provide essential additional information about items in the main financial documents. Auditors and accountants use footnotes to explain important details about numbers, accounting methods, or potential risks that wouldn't fit in the main report. Think of them like detailed explanatory notes that help readers fully understand financial statements. In the accounting world, they're also sometimes called "Notes to Financial Statements" or "Disclosures."
Examples in Resumes
Reviewed and updated Footnotes for quarterly financial statements ensuring SEC compliance
Prepared comprehensive Notes to Financial Statements for annual reports
Audited Footnotes and Financial Statement Disclosures for accuracy and completeness
Typical job title: "Auditors"
Also try searching for:
Where to Find Auditors
Professional Organizations
Online Communities
Job Boards
Example Interview Questions
Senior Level Questions
Q: How do you ensure footnote disclosures are complete and compliant with current regulations?
Expected Answer: A senior auditor should discuss their process for reviewing regulatory requirements (like GAAP and SEC rules), checking against disclosure checklists, and ensuring all material items are properly explained. They should mention coordination with management and experience with complex disclosures.
Q: Can you describe a situation where you identified missing or inadequate footnote disclosures?
Expected Answer: Should provide examples of how they identified disclosure gaps, communicated with clients, and resolved the issues. Should demonstrate knowledge of what makes a disclosure adequate and how to improve insufficient ones.
Mid Level Questions
Q: What are the essential components that should be included in footnotes for financial statements?
Expected Answer: Should mention key elements like accounting policies, detailed breakdowns of significant accounts, commitments and contingencies, and related party transactions. Should show understanding of why each component is important.
Q: How do you verify the accuracy of information presented in footnotes?
Expected Answer: Should explain their process for cross-referencing footnotes with financial statements, reviewing supporting documentation, and confirming information with appropriate personnel.
Junior Level Questions
Q: What is the purpose of footnotes in financial statements?
Expected Answer: Should explain that footnotes provide additional explanation and detail about items in the financial statements that help readers better understand the company's financial position and operations.
Q: How do you organize and reference footnotes in financial statements?
Expected Answer: Should describe basic footnote structure, numbering systems, and how to properly cross-reference footnotes with the main financial statements.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of financial statements
- Ability to read and understand simple footnotes
- Knowledge of standard disclosure requirements
- Basic documentation skills
Mid (2-5 years)
- Preparation of comprehensive footnotes
- Review of disclosure completeness
- Understanding of regulatory requirements
- Ability to explain complex disclosures
Senior (5+ years)
- Advanced knowledge of disclosure requirements
- Experience with complex financial instruments
- Ability to train others on proper disclosure
- Expert-level regulatory compliance knowledge
Red Flags to Watch For
- Inability to explain basic financial statement components
- Lack of attention to detail in documentation
- No knowledge of current accounting standards
- Poor understanding of regulatory requirements
- Inability to write clear, concise explanations
Related Terms
Need more hiring wisdom? Check these out...
From Farewells to Future Allies: Transforming Exit Interviews into Lifelong Connections
Refining Job Descriptions to Expand Applicant Pools: Casting a Wider Talent Net
Speak Their Language: How Localized Job Descriptions Unlock Regional Talent
