Aneja Associates Internal Audit Associate Interview Questions and Answers for Experienced

Q1. Audit & Standards related question
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Q1. IND AS transition
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Q2. Leases , disclosure requirement
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Q3. Financial reporting disclosures
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Q1. Explain about ASC 842
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Q2. Explain ASC 606 five steps
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Accounting Standard

Q1. What is your strength? Why should we hire you?
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Q1. Basic things about location and salary
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Q1. What is wtd avg cost of capital
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Wtd avg cost of capital is the average cost of all the capital sources a company uses, weighted by their proportion in the company's capital structure.
• WACC is used to determine the minimum rate of return a company must earn on its investments to satisfy its investors.

• It takes into account the cost of debt, cost of equity, and the proportion of each in the company's capital structure.

• For example, if a company has 60% of...read more
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Q2. What is leveraged buyout
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Leveraged buyout is a financial transaction where a company is acquired using a significant amount of borrowed money.
• LBO involves using debt to finance the acquisition of a company

• The acquired company's assets are often used as collateral for the borrowed funds

• The goal is to use the acquired company's cash flow to pay off the debt over time

• LBOs are often used by private equity firms to acquire companies

• Famous examples ...read more
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Q3. What is liquidity ratio
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Liquidity ratio is a financial metric that measures a company's ability to pay off its short-term debts.
• It is calculated by dividing a company's current assets by its current liabilities.

• A higher liquidity ratio indicates that a company is more capable of paying off its debts.

• Common liquidity ratios include the current ratio and the quick ratio.

• Liquidity ratios are important for investors and creditors to assess a comp
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Q4. What is debt service coverage ratio
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Debt service coverage ratio is a financial metric used to measure a company's ability to pay its debts.
• It is calculated by dividing a company's net operating income by its total debt service.

• A ratio of 1 or higher indicates that a company is generating enough income to cover its debt payments.

• Lenders often use this ratio to assess a borrower's creditworthiness before approving a loan.

• For example, if a company has a net...read more
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Q1. What is internal rate of return
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Internal rate of return is the rate at which an investment's net present value is zero.
• It is a metric used to evaluate the profitability of an investment.

• It takes into account the time value of money and considers all cash flows associated with an investment.

• The higher the IRR, the more profitable the investment.

• IRR is used to compare different investment opportunities with varying cash flows and time horizons.

• For exam...read more
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Q2. Salary negotioation happened afterwards
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