BDO India LLP Interview Questions, Process, and Tips

Assertion is a claim or statement made by management regarding the financial statements.

• Assertions are made by management to ensure the accuracy and completeness of financial statements.

• There are different types of assertions such as existence, completeness, valuation, rights and obligations, etc.

• For example, the assertion of existence would state that all reported assets and liabilities actually exist.

• Auditors test th...read more

Materiality is the concept of determining the significance or importance of an item or event in relation to financial statements.

• Materiality helps auditors decide what information to focus on during an audit

• It is based on the size, nature, and circumstances of an item or event

• Materiality is subjective and can vary depending on the context

• For example, a small error in a company's financial statements may not be consider...read more

Different types of audit opinions include unqualified, qualified, adverse, and disclaimer.

• Unqualified opinion: clean opinion, no material misstatements found

• Qualified opinion: some limitations or scope restrictions, but overall financial statements are fairly presented

• Adverse opinion: significant material misstatements found, financial statements are not fairly presented

• Disclaimer opinion: auditor unable to form an opi...read more

I have used various financial analysis tools such as Excel, Bloomberg Terminal, and Tableau in my previous roles.

• Excel for financial modeling and data analysis

• Bloomberg Terminal for market research and analysis

• Tableau for data visualization and reporting

Amendments on Caro refer to changes made to the Companies (Auditor's Report) Order, which outlines the format and content of auditor's reports for companies.

• Amendments on Caro are made by the Ministry of Corporate Affairs to ensure compliance with changing regulations and standards.

• These amendments may include updates to reporting requirements, disclosure of key audit matters, or changes in the format of the auditor's ...read more

Depreciation is the allocation of the cost of an asset over its useful life, accrual is recognizing revenue and expenses when they are incurred, and prepayment is paying for expenses before they are incurred.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet over time.

• Accrual accounting matches revenue and expenses to the period they are incurred, not when cash is exchanged.

• Prepa...read more

Test of details focuses on specific transactions or account balances, while controls test the effectiveness of internal controls.

• Test of details involves examining individual transactions or account balances to ensure accuracy and completeness.

• Controls testing evaluates the effectiveness of internal controls in preventing or detecting errors or fraud.

• Test of details may involve confirming account balances with third pa...read more

Audit procedures for purchase cycle and payroll involve verifying transactions, reconciling accounts, and testing internal controls.

• Verify purchase orders, invoices, and payments match

• Reconcile accounts payable ledger to vendor statements

• Test segregation of duties in payroll processing

• Review payroll register for accuracy and completeness

• Confirm payroll taxes are properly withheld and remitted

Revenue recognition under IFRS involves recognizing revenue when it is earned and realizable, regardless of when cash is received.

• Revenue is recognized when it is probable that economic benefits will flow to the entity and the revenue can be reliably measured.

• Revenue is measured at the fair value of the consideration received or receivable.

• Revenue recognition criteria include transfer of risks and rewards, no continuin...read more

Deferred tax is a balance sheet item that represents the tax consequences of temporary differences between accounting income and taxable income.

• Deferred tax arises due to timing differences in recognizing income and expenses for tax and accounting purposes.

• It is recorded on the balance sheet as a liability or asset depending on whether the tax payable is more or less than the tax expense recognized in the income statem...read more

I would empathize with the client, explain the situation calmly, offer solutions or alternatives, and ensure their satisfaction.

• Listen to the client's concerns and acknowledge their feelings

• Explain the situation calmly and objectively

• Offer solutions or alternatives to address the issue

• Ensure the client's satisfaction and maintain a positive relationship