30+ Empower Retirement Interview Questions and Answers

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 its capital structure in debt with a cost of 5% and 40% i...read more

Inheritance is a mechanism in which a new class inherits properties and behaviors from an existing class. Polymorphism allows objects of different classes to be treated as objects of a common superclass.

• Java 8 features include lambda expressions, functional interfaces, streams, and default methods.

• Stack is a data structure that follows the Last In First Out (LIFO) principle, while a queue follows the First In First Out (FIFO) principle.

• Enhanced for loop in Java is used to ite...read more

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 operating income of $100,000 and total debt service of $8...read more

Short term capital gains on equity shares are taxable.

• Short term capital gains on equity shares are taxed at a rate of 15%.

• Short term capital gains are gains made on the sale of equity shares held for less than 1 year.

• The gains are added to the individual's total income and taxed accordingly.

• However, if the individual has incurred short term capital losses, they can be set off against the gains.

• If the losses exceed the gains, the remaining loss can be carried forward for up t...read more

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 example, if an investment requires an initial outlay of $10,00...read more

Investment banking involves providing financial services to corporations, governments, and other institutions.

• Investment banks help companies raise capital by underwriting and issuing securities.

• They also provide advisory services for mergers and acquisitions, and other financial transactions.

• AML (Anti-Money Laundering) and KYC (Know Your Customer) are regulatory requirements that investment banks must comply with to prevent financial crimes.

• AML involves identifying and repor...read more

AML/KYC refers to Anti-Money Laundering and Know Your Customer regulations that financial institutions must comply with.

• AML/KYC regulations are designed to prevent money laundering and terrorist financing.

• Financial institutions must verify the identity of their customers and monitor their transactions for suspicious activity.

• AML/KYC compliance is mandatory for banks, credit unions, and other financial institutions.

• Examples of AML/KYC measures include customer due diligence, t...read more

Accounts payable and receivable are audited by examining invoices, payments, reconciliations, and internal controls.

• Reviewing invoices and matching them to purchase orders and receiving reports

• Confirming balances with vendors and customers

• Analyzing aging reports to identify overdue payments

• Testing internal controls related to authorization, recording, and reconciliation of transactions

• Performing cutoff tests to ensure transactions are recorded in the correct period

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 company's financial health.

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 of LBOs include the acquisition of RJR Nabisco by KKR in 1...read more

DDT rate is arrived at by applying a flat rate of 15% on the dividend declared by the company.

• DDT stands for Dividend Distribution Tax

• It is a tax levied on the dividend paid by a company to its shareholders

• The rate of DDT is fixed at 15% by the government

• The DDT is deducted by the company before distributing the dividend to its shareholders

• The DDT is paid by the company and not by the shareholders

Substantive tests are procedures performed to detect material misstatements in financial statements, while tests of controls evaluate the effectiveness of internal controls.

• Substantive tests are used to gather evidence about the completeness, accuracy, and validity of the financial information.

• Examples of substantive tests include analytical procedures, substantive analytical procedures, and tests of details.

• Tests of controls assess the design and operating effectiveness of i...read more

The KPI of my previous company was customer satisfaction.

• Customer satisfaction was measured through surveys and feedback.

• The KPI target was to achieve a minimum of 90% customer satisfaction rate.

• We regularly analyzed customer complaints and took necessary actions to improve satisfaction.

• Implemented new processes and systems to enhance customer experience.

• Trained employees to provide excellent customer service.

SQC stands for Statistical Quality Control. International standards are guidelines set by international organizations to ensure quality and safety.

• SQC is a set of statistical methods used to monitor and control quality in a production process.

• International standards are developed by organizations such as ISO and IEC to ensure products and services meet certain quality and safety requirements.

• Examples of international standards include ISO 9001 for quality management and ISO 1...read more

Substantive testing involves testing the accuracy and completeness of financial information, while control testing evaluates the effectiveness of internal controls.

• Substantive testing is used to gather evidence on the accuracy and completeness of financial information.

• Control testing is used to evaluate the effectiveness of internal controls in place to prevent and detect errors or fraud.

• Substantive testing includes procedures like analytical procedures, substantive analytica...read more

Current assets are assets that are expected to be converted into cash or used up within one year, while financial assets are assets that are traded in financial markets.

• Current assets include cash, accounts receivable, inventory, and prepaid expenses

• Financial assets include stocks, bonds, derivatives, and other securities

• Current assets are used in day-to-day operations of a business, while financial assets are typically held for investment purposes

The new tax regime under Budget is an optional tax system with lower tax rates but without exemptions and deductions.

• The new tax regime was introduced in the Budget 2020.

• It offers lower tax rates but without exemptions and deductions.

• Taxpayers can choose between the old and new tax regimes every year.

• The new tax regime is beneficial for taxpayers who do not claim many deductions and exemptions.

• The old tax regime is beneficial for taxpayers who claim many deductions and exempt...read more

Audit of Fixed Assets involves verifying existence, ownership, valuation, and physical condition of assets.

• Reviewing the fixed assets register to ensure all assets are recorded accurately

• Physically inspecting the assets to verify their existence and condition

• Checking ownership documents to confirm legal ownership of the assets

• Evaluating the valuation method used for fixed assets to ensure it complies with accounting standards

• Testing the depreciation calculations to ensure the...read more

Scam 1992 is a web series based on the true story of Harshad Mehta, a stockbroker who was involved in the 1992 Indian securities scam.

• Scam 1992 is a 10-episode web series released in 2020 on SonyLIV.

• It is based on the book 'The Scam: Who Won, Who Lost, Who Got Away' by Sucheta Dalal and Debashish Basu.

• The series portrays the rise and fall of Harshad Mehta, a stockbroker who used loopholes in the banking system to manipulate the stock market.

• It stars Pratik Gandhi in the lead ...read more

Internal audit is an independent and objective assurance activity designed to add value and improve an organization's operations.

• Internal audit evaluates the effectiveness of an organization's risk management, control, and governance processes.

• It helps organizations to identify areas of improvement and make recommendations for corrective actions.

• Internal audit can cover a wide range of areas such as financial reporting, compliance, information technology, and operational proc...read more

Public companies are owned by the general public through shares traded on the stock exchange, while private companies are owned by a small group of individuals or investors.

• Public companies have shares that are traded on the stock exchange, allowing anyone to buy or sell them.

• Private companies are owned by a small group of individuals or investors, and their shares are not publicly traded.

• Public companies are required to disclose financial information to the public, while pri...read more

I have over 5 years of experience in taxation, including preparing tax returns, conducting tax research, and advising clients on tax planning strategies.

• Prepared individual and business tax returns accurately and efficiently

• Conducted tax research to stay up-to-date on changing tax laws and regulations

• Advised clients on tax planning strategies to minimize tax liabilities

• Assisted with IRS audits and resolving tax issues

• Worked with tax software such as TurboTax and QuickBooks

Materiality is determined by considering the impact of an error on financial statements and users' decision-making.

• Consider the size and nature of the item in relation to the financial statements

• Assess the potential impact on users' decision-making

• Take into account regulatory requirements and industry standards

• Use professional judgment to determine materiality thresholds

• Materiality can vary based on the specific circumstances of the audit

Substantive procedures are audit procedures designed to obtain evidence to detect material misstatements in financial statements.

• Substantive procedures are performed to obtain direct evidence about the completeness, accuracy, and validity of the data produced by the client's accounting system.

• These procedures are used to test account balances, transactions, and disclosures.

• Examples of substantive procedures include analytical procedures, tests of details of transactions, and ...read more

Assertions in audit are management's claims about the accuracy and completeness of financial statements.

• Assertions are used by auditors to assess the validity of financial statement items.

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

• For example, an auditor may test the existence assertion by physically inspecting inventory.

• Assertions help auditors determine the risk of material miss...read more

Optimisation involves finding the best solution to a problem by maximizing or minimizing a certain objective function.

• Identify the objective function to be optimized

• Define constraints that need to be satisfied

• Choose an optimization algorithm such as gradient descent or genetic algorithms

• Iteratively improve the solution until the optimal solution is found

Heads of income refer to different categories under which income is classified for tax purposes.

• Heads of income include salary, house property, business or profession, capital gains, and other sources.

• Salary income includes income from employment, bonuses, allowances, etc.

• House property income includes rental income from properties owned by the individual.

• Business or profession income includes income from self-employment or business activities.

• Capital gains income includes pr...read more

Accounting rules are guidelines and principles that govern the preparation of financial statements and ensure consistency and accuracy.

• Accounting rules help ensure that financial information is recorded accurately and consistently.

• They provide guidelines on how to classify, measure, and report financial transactions.

• Examples of accounting rules include the matching principle, revenue recognition principle, and the historical cost principle.

I have over 5 years of experience in internal audit, conducting risk assessments, testing controls, and providing recommendations for improvement.

• Conducted risk assessments to identify potential areas of concern

• Tested controls to ensure compliance with policies and procedures

• Provided recommendations for improvement to enhance operational efficiency

• Collaborated with various departments to address audit findings

• Utilized audit software to streamline processes and improve accurac...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 principle that only items that could influence the decisions of users of financial statements need to be disclosed

• Materiality is influenced by factors such as size, nature, and circumstances of an item or event

• For example, a $10,000 error in a company wi...read more

Audit of specified accounts involves examining specific financial accounts to ensure accuracy and compliance.

• Identify the specified accounts to be audited based on risk assessment

• Review transactions and balances related to the specified accounts

• Perform substantive testing to verify the accuracy of the accounts

• Document findings and communicate any discrepancies to management

• Ensure compliance with relevant accounting standards and regulations

Transfer pricing is the setting of prices for goods and services sold between related entities within an organization.

• Transfer pricing is used to ensure that transactions between related entities are conducted at arm's length to prevent tax evasion.

• It involves determining the price at which goods or services are transferred between different divisions or subsidiaries of a company.

• Transfer pricing can impact the taxable income of different entities within the organization.

• Comm...read more

Heap dump analysis is the process of analyzing memory dumps to identify memory leaks and performance issues in Java applications.

• Heap dump is a snapshot of the Java memory at a specific point in time

• It contains information about objects, classes, and references in memory

• Analysis involves identifying memory leaks, inefficient memory usage, and performance bottlenecks

• Tools like VisualVM, Eclipse MAT, and YourKit can be used for heap dump analysis

Garbage collection is a process in computer programming where the system automatically reclaims memory occupied by objects that are no longer in use.

• Garbage collection helps prevent memory leaks by freeing up memory that is no longer needed.

• It is commonly used in languages like Java, C#, and Python.

• Examples of garbage collection algorithms include mark and sweep, reference counting, and generational collection.