Deloitte Statutory Audit Associate Interview Questions and Answers

CARO 2020 is an updated version of the Companies Auditor's Report Order with new reporting requirements.

• CARO 2020 has expanded the scope of reporting requirements for auditors

• It includes new reporting requirements related to fraud, internal financial controls, and loans and investments

• CARO 2020 also requires auditors to report on the impact of COVID-19 on the company's financial statements

• The threshold for reporting on...read more

Ind AS 115 is a new revenue recognition standard applicable to all industries.

• Ind AS 115 replaces the existing revenue recognition standards and provides a single, comprehensive framework for revenue recognition.

• It outlines a five-step model for recognizing revenue from contracts with customers.

• The five steps are: identify the contract, identify the performance obligations, determine the transaction price, allocate the...read more

A common control business combination occurs when two or more businesses are under the control of the same parent company.

• In a common control business combination, the parent company has the ability to direct the operating and financial policies of the businesses.

• This type of combination typically involves businesses that are owned by the same group of shareholders or have the same management team.

• Common control busine...read more

Effective Interest Rate (EIR) for a loan can be calculated using a formula that considers the loan amount, interest rate, and repayment schedule.

• Calculate the present value of all cash flows associated with the loan, including both principal and interest payments

• Determine the interest rate that equates the present value of cash flows to the loan amount

• The formula for EIR calculation is complex and typically requires th...read more

An audit trail is a chronological record of all activities related to a specific operation or event.

• It provides a detailed history of changes made to data, including who made the changes and when.

• Audit trails are commonly used in financial audits to track transactions and ensure accuracy.

• They help in detecting errors, fraud, or unauthorized activities by providing a trail of evidence.

• Audit trails are essential for main...read more

I have completed a 3-year articleship experience in a reputed audit firm.

• During my articleship, I gained practical knowledge and hands-on experience in auditing financial statements.

• I assisted in conducting audits for various clients across different industries.

• I learned how to analyze financial data, identify risks, and ensure compliance with statutory regulations.

• I also developed strong communication and interpersona...read more

I am a detail-oriented individual with a strong background in accounting and auditing.

• Graduated with a degree in Accounting

• Completed internships at accounting firms

• Strong knowledge of auditing standards and procedures

• Excellent analytical and problem-solving skills

• Effective communication and teamwork abilities

I have been engaged in auditing various industries including manufacturing, retail, technology, and financial services.

• Manufacturing industry audits involved reviewing inventory management and cost control processes.

• Retail industry audits focused on sales and revenue recognition practices.

• Technology industry audits included assessing internal controls over software development and intellectual property.

• Financial servic...read more

The question covers topics such as taxation of trust, carry forward of expenses, loan sanction process, MAT, 3CD section of TDS TCS, 5 Step of 115, difference between ROU and lease liability, and reasons for joining the company and relocating to the city.

• Taxation of trust involves the taxation rules and regulations applicable to trusts and their income.

• Carry forward of expenses allows taxpayers to offset certain expens...read more

Audit risk is the risk that an auditor expresses an inappropriate opinion on financial statements. It has two types: inherent and control risk.

• Audit risk is the risk that an auditor will not detect material misstatements in the financial statements.

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

• Control risk is the risk that a material misstatement will not be prevented or dete...read more

Audit assertions are the claims made by management regarding the financial statements.

• Existence or occurrence - assets and liabilities exist and transactions have occurred

• Completeness - all transactions and accounts have been recorded

• Valuation or allocation - assets, liabilities, revenues, and expenses are valued appropriately

• Rights and obligations - the entity has legal rights to assets and liabilities

• Presentation and...read more