20+ AYBI Energy Interview Questions and Answers

Audit risk is the risk that an auditor expresses an inappropriate opinion on financial statements.

• Audit risk is the risk that the auditor may issue an incorrect opinion on the financial statements.

• It is the risk that the auditor may fail to detect material misstatements in the financial statements.

• Audit risk is composed of inherent risk, control risk, and detection risk.

• Inherent risk is the risk of material misstatement in the absence of internal controls.

• Control risk is the ...read more

Contingent assets and liabilities are potential assets and liabilities that may arise in the future based on certain events.

• Contingent Asset: potential assets that may arise in the future if certain events occur, such as a pending lawsuit or a potential tax refund.

• Contingent Liability: potential liabilities that may arise in the future if certain events occur, such as a pending lawsuit or a warranty claim.

• Contingent assets and liabilities are not recognized in the financial s...read more

To check cash and bank balances, I would perform bank reconciliations, verify deposits and withdrawals, and review bank statements.

• Perform bank reconciliations to ensure the balance in the company's books matches the bank statement

• Verify deposits and withdrawals by comparing them to supporting documentation such as deposit slips and checks

• Review bank statements for any discrepancies or unauthorized transactions

• Investigate any differences between the company's records and the ...read more

A finance lease is a type of lease where the lessee has substantially all the risks and rewards of ownership.

• The lease term is for the major part of the economic life of the asset

• The present value of the minimum lease payments is equal to or more than the fair value of the asset

• The asset is expected to be used by the lessee for the major part of its economic life

• The lease agreement includes an option to purchase the asset at a bargain price at the end of the lease term

• The lea...read more

Recognizing revenue of bundled services involves allocating the total revenue to each service based on their standalone selling prices.

• Identify the standalone selling prices of each service included in the bundle.

• Allocate the total revenue based on the relative fair value of each service.

• Recognize revenue for each service as it is delivered or as the customer consumes the service.

• Ensure that the revenue recognition complies with accounting standards such as ASC 606.

• Example: A...read more

Ind AS 570 outlines three types of sampling reports: Type 1, Type 2, and Type 3.

• Type 1 report is issued when the auditor identifies no material misstatements in the sample.

• Type 2 report is issued when the auditor identifies material misstatements in the sample and concludes that the population may contain material misstatements.

• Type 3 report is issued when the auditor identifies material misstatements in the sample and concludes that the population contains material misstatem...read more

Accumulated depreciation is the total amount of depreciation expense that has been recorded for an asset since it was acquired.

• Accumulated depreciation is a contra asset account, meaning it has a credit balance.

• It represents the total depreciation expense recognized on an asset over its useful life.

• Accumulated depreciation is used to reduce the carrying amount of an asset on the balance sheet.

• For example, if a company purchased a machine for $10,000 with a useful life of 5 ye...read more

Materiality refers to the significance of an item or event in relation to financial statements.

• Materiality is a concept used in auditing to determine the importance of an item or event in relation to financial statements.

• It is used to determine whether an item or event is significant enough to affect the decision-making of users of financial statements.

• Materiality is subjective and depends on the context of the financial statements and the users of those statements.

• For exampl...read more

There are three main types of depreciation: straight-line, double declining balance, and units of production.

• Straight-line depreciation: Equal amount of depreciation is deducted each year over the useful life of the asset.

• Double declining balance depreciation: Accelerated method where depreciation expense is higher in the early years and decreases over time.

• Units of production depreciation: Depreciation is based on the actual usage of the asset, such as the number of units pr...read more

Vlookup & Hlookup are Excel functions used to search for a value in a table and return a corresponding value.

• Vlookup searches for a value in the first column of a table and returns a value in the same row from a specified column.

• Hlookup searches for a value in the first row of a table and returns a value in the same column from a specified row.

• Both functions are commonly used in Excel for data analysis and manipulation.

• Example: =VLOOKUP(A2, B2:D10, 3, FALSE) - This formula se...read more

Contingent Liability is a potential obligation that may arise from past events and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events.

• It is a liability that is not yet certain but may become certain in the future

• It arises from past events

• It depends on the occurrence or non-occurrence of one or more uncertain future events

• Examples include pending lawsuits, warranties, and guarantees

Process flow of a business process and audit considerations.

• Understand the process flow and identify key controls

• Evaluate the design and operating effectiveness of controls

• Test the controls to ensure they are working as intended

• Identify any gaps or weaknesses in the process and provide recommendations for improvement

• Consider any regulatory or compliance requirements that may impact the process

Accounting concepts are fundamental principles that guide the preparation and presentation of financial statements.

• Accrual accounting vs. cash accounting

• Matching principle

• Conservatism principle

• Revenue recognition principle

• Historical cost principle

• Materiality principle

BRS stands for Bank Reconciliation Statement, which is a statement prepared to reconcile the balance as per the bank statement with the balance as per the company's books.

• BRS helps in identifying discrepancies between the bank statement and the company's records.

• It ensures that all transactions are accurately recorded and accounted for.

• Common reasons for differences in BRS include outstanding checks, deposits in transit, bank charges, and errors in recording transactions.

• Exam...read more

Risk-based audit approach focuses on identifying and assessing risks to determine audit procedures. Revenue recognition involves 5 key steps.

• Identify the risks associated with revenue recognition, such as fraud or errors.

• Assess the significance of these risks to determine the audit approach.

• Design and perform audit procedures to address the identified risks.

• Evaluate the results of the audit procedures and draw conclusions.

• Communicate the findings to stakeholders and provide r...read more

K-1 and K-2 forms are used for fiancé(e) and dependent visas respectively in the United States.

• K-1 form is used for fiancé(e) visas and K-2 form is used for dependent visas in the US

• K-1 form allows a US citizen to bring their fiancé(e) to the US for marriage within 90 days

• K-2 form allows the dependent children of the K-1 visa holder to accompany them to the US

• Both forms require extensive documentation and background checks

I will bring a unique blend of leadership, strategic thinking, and problem-solving skills to the table.

• Proven track record of successfully leading teams and achieving goals

• Ability to think critically and strategically to identify and solve complex problems

• Strong communication and interpersonal skills to build relationships and collaborate effectively

• Experience in developing and implementing innovative solutions to drive growth and improve efficiency

• Passion for continuous lear...read more

Assertions are claims or statements made by management regarding the financial statements.

• Assertions are made by management about the accuracy, completeness, and validity of the financial statements.

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

• Auditors use these assertions to assess the risk of material misstatement in the financial statements.

• For example, the existence assertion states that assets and liabili...read more

Reviewing returns and workpapers involves thorough examination of tax documents and supporting documentation.

• Start by reviewing the tax return for accuracy and completeness

• Compare the numbers on the return to the supporting workpapers

• Check for any discrepancies or missing information

• Verify that all calculations are correct

• Ensure that all necessary schedules and forms are included

• Document any findings or issues for further review or discussion

Accruals are expenses incurred but not yet paid or revenues earned but not yet received.

• Accruals are used to match expenses and revenues to the period in which they are incurred or earned.

• They are recorded as adjusting entries in the financial statements.

• Examples include accrued salaries, accrued interest, and accrued taxes.

• Accruals help provide a more accurate representation of a company's financial position.

• Accrual accounting is based on the matching principle.

Revenue recognition is the process of recording revenue in the financial statements when it is earned, regardless of when the cash is received.

• Revenue is recognized when it is realized or realizable and earned.

• The amount of revenue to be recognized is based on the consideration received or expected to be received in exchange for goods or services.

• Revenue recognition principles may vary based on the industry and specific circumstances.

• Examples include recognizing revenue from ...read more

Golden rules of accounting are basic principles that guide the process of recording financial transactions.

• The three golden rules of accounting are: 1. Debit the receiver, Credit the giver 2. Debit what comes in, Credit what goes out 3. Debit expenses and losses, Credit income and gains

• These rules help maintain the balance in the accounting equation: Assets = Liabilities + Equity

• For example, when a company receives cash from a customer, it would debit the cash account (increa...read more

VLOOKUP is a function in Excel used to search for a value in a table and return a corresponding value from another column.

• VLOOKUP stands for 'Vertical Lookup'

• Syntax: =VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])

• Example: =VLOOKUP(A2, B2:D10, 3, FALSE) - searches for the value in cell A2 in the range B2:D10 and returns the value in the 3rd column

• The last parameter [range_lookup] can be TRUE (approximate match) or FALSE (exact match)