Ernst & Young Audit Associate Interview Questions, Process, and Tips

Revenue recognition concept refers to the accounting principle that determines when and how revenue is recognized in financial statements.

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

• The amount of revenue recognized should be based on the fair value of the goods or services provided

• Revenue recognition can be complex and may require judgment and estimation

• Different industries may have different reve...read more

ICFR stands for Internal Control over Financial Reporting.

• ICFR is a process designed to provide reasonable assurance regarding the reliability of financial reporting.

• It involves identifying and assessing risks, designing and implementing controls, and monitoring their effectiveness.

• ICFR is required by the Sarbanes-Oxley Act for publicly traded companies in the US.

• Examples of ICFR controls include segregation of duties,...read more

The golden rules of accounting are basic principles that guide the recording of financial transactions.

• The first golden rule is the rule of debit and credit.

• The second golden rule is the rule of personal accounts.

• The third golden rule is the rule of real accounts.

• The rule of debit and credit states that for every debit entry, there must be a corresponding credit entry.

• The rule of personal accounts states that debit the...read more