10+ Head Hunters HR Interview Questions and Answers

If bad debt is recovered, the entry should be a reversal of the original bad debt write-off entry.

• Create a journal entry to reverse the original bad debt write-off entry

• Debit the bad debt recovery account for the amount recovered

• Credit the accounts receivable account for the same amount

• If any interest or fees were charged on the bad debt, those should be credited to the income account

• If the bad debt was previously written off as an expense, the reversal entry should be made t...read more

AR stands for Accounts Receivable. Journal entries related to it are transactions that record the amount owed to a company by its customers.

• AR is a type of asset account that represents money owed to a company by its customers

• Journal entries related to AR include recording sales on credit, receiving payments from customers, and writing off bad debts

• Example: Recording a sale on credit would involve debiting AR and crediting sales revenue

• Example: Receiving a payment from a cust...read more

If a company becomes insolvent, the entry should be recorded as a loss in the financial statements.

• Insolvency occurs when a company is unable to pay its debts and liabilities.

• The entry to record insolvency typically involves recognizing a loss on the balance sheet.

• The specific accounts affected will depend on the nature of the insolvency and the company's accounting policies.

• For example, if a company becomes insolvent due to bad debts, the entry may involve debiting the bad d...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

I am familiar with various digital tools such as Google Suite, Trello, and Slack. I prefer using Trello for project management and Google Suite for collaboration.

• Google Suite for collaboration and document sharing

• Trello for project management and task tracking

• Slack for team communication and file sharing

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 statement.

• Deferred tax assets can arise from items like tax loss...read more

Answering questions on BDO, reserves and provisions, outstanding and accrued, and non-profit taxation.

• BDO is a global accounting firm with expertise in tax services.

• Reserves are profits set aside for future use, while provisions are expenses set aside for future payment.

• Outstanding refers to unpaid debts or obligations, while accrued refers to expenses that have been incurred but not yet paid.

• Non-profit organizations may be taxable if they engage in certain activities, such a...read more

Learned about financial statement preparation, audit procedures, and client communication.

• Assisted in the preparation of financial statements for clients

• Conducted audit procedures such as testing internal controls and verifying account balances

• Communicated with clients to gather necessary information and provide updates on audit progress

• Learned about the importance of professional skepticism and attention to detail in auditing

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.

• Prepayment is when expenses are paid in advance before they are...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 parties or examining supporting documentation.

• Controls testi...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

Internal audit process of a manufacturing company involves evaluating the effectiveness of internal controls, risk management, and compliance.

• Assessing the adequacy of inventory controls

• Reviewing production processes for efficiency and effectiveness

• Evaluating compliance with environmental regulations

• Assessing the effectiveness of quality control measures

• Reviewing financial controls and transactions

• Evaluating the effectiveness of health and safety policies

• Assessing the adequac...read more

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 continuing managerial involvement, and the amount of revenue can be...read more

FAS stands for Fire Alarm System.

• FAS is an acronym for Fire Alarm System.

• It refers to a network of devices that detect and alert people about the presence of fire or smoke.

• FAS typically includes smoke detectors, heat detectors, fire alarms, and control panels.

• These systems are crucial for early fire detection and ensuring the safety of occupants in buildings.

• Examples of FAS brands include Honeywell, Siemens, and Notifier.

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 report.

• For example, recent amendments to Caro may require ...read more