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

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

• Graduated with a degree in Accounting

• Completed internships at accounting firms

• Proficient in financial analysis and reporting

• Strong attention to detail and problem-solving skills

I come from a close-knit family of five, including my parents, older sister, and younger brother.

• My parents have always been supportive of my career choices and encouraged me to pursue my education.

• My older sister is a doctor and has been a role model for me in terms of hard work and dedication.

• My younger brother is currently studying engineering and we often bond over our shared love for technology.

I prioritize my time effectively, set goals, and maintain a balance between academics and extracurricular activities.

• Create a schedule or to-do list to prioritize tasks

• Set specific goals for both academics and extracurricular activities

• Learn to say no to commitments that may overwhelm you

• Utilize breaks between classes or study sessions for extracurricular activities

• Seek support from friends, family, or mentors for time

I want to join EY because of its reputation for excellence, diverse opportunities for growth, and strong focus on employee development.

• EY is known for its commitment to excellence in the field of assurance services

• I am impressed by the diverse range of clients and industries EY works with, providing unique learning opportunities

• EY's emphasis on employee development through training and mentorship programs aligns with m

During my internship, I assisted with financial statement audits, conducted testing procedures, and prepared workpapers.

• Assisted with financial statement audits

• Conducted testing procedures

• Prepared workpapers

• Analyzed data to identify discrepancies

• Communicated findings to senior team members

Auditing is the process of examining financial records to ensure accuracy and compliance with regulations.

• Auditing involves reviewing financial statements, transactions, and records.

• The goal of auditing is to provide assurance that financial information is accurate and reliable.

• Auditors may also identify areas for improvement in financial reporting and internal controls.

• Examples of audits include financial statement au

Journal entries for sales return and purchase return.

• Sales return journal entry: Debit Sales Returns and Credit Accounts Receivable/Accounts Payable.

• Purchase return journal entry: Debit Accounts Payable and Credit Purchase Returns.

Balance Sheet shows the financial position of a company at a specific point in time, while Profit & Loss Account shows the company's financial performance over a period of time.

• Balance Sheet is a snapshot of a company's assets, liabilities, and equity at a specific date.

• Profit & Loss Account shows the company's revenues, expenses, and net income or loss over a specific period, such as a year.

• Balance Sheet helps in asse...read more

Present value is calculated to determine the current worth of future cash flows.

• Present value helps in evaluating the profitability of an investment or project.

• It takes into account the time value of money, as money received in the future is worth less than money received today.

• Present value is used in various financial calculations such as net present value (NPV) and discounted cash flow (DCF) analysis.

• It allows for c...read more

GST is Goods and Services Tax, a comprehensive indirect tax levied on the supply of goods and services in India.

• GST was implemented in India on July 1, 2017, replacing multiple indirect taxes like VAT, excise duty, and service tax.

• It is a destination-based tax system, where the tax is collected at the point of consumption.

• GST aims to simplify the tax structure, eliminate cascading effect, and create a unified market ac...read more

Audit is a systematic and independent examination of financial statements, records, operations, and performance of an organization.

• Audit is a process of evaluating the financial statements of an organization to ensure their accuracy and reliability.

• It involves examining the records, operations, and performance of an organization to identify any discrepancies or irregularities.

• The purpose of an audit is to provide assur...read more

Accrued income is income that has been earned but not yet received or recorded in the accounting books.

• Accrued income is recognized as a current asset on the balance sheet.

• It is recorded through an adjusting entry, which debits an accrued income account and credits the corresponding revenue account.

• Examples of accrued income include interest on investments, rent, and services rendered but not yet billed.

• Accrued income ...read more

Prepaid expenses are expenses paid in advance and recorded as assets until they are used or consumed.

• Prepaid expenses are initially recorded as assets on the balance sheet

• As the prepaid expense is used or consumed, it is recognized as an expense on the income statement

• The entry for prepaid expenses is a debit to the prepaid expense account and a credit to the cash account

• Examples of prepaid expenses include rent, insur

GAAP stands for Generally Accepted Accounting Principles and is a set of accounting standards used in the US.

• GAAP is a set of guidelines for financial reporting that ensures consistency and transparency in financial statements.

• It includes principles for revenue recognition, expense recognition, and asset valuation.

• Examples of GAAP include the matching principle, which requires expenses to be recognized in the same peri...read more

Debit and credit are two sides of an accounting transaction. Debit refers to an entry on the left side of an account, while credit refers to an entry on the right side of an account.

• Debit is used to record an increase in assets or a decrease in liabilities or equity.

• Credit is used to record a decrease in assets or an increase in liabilities or equity.

• Debit and credit must always balance in an accounting transaction.

• For...read more

Depreciation is the allocation of the cost of an asset over its useful life.

• Depreciation is a non-cash expense that reduces the value of an asset over time.

• It is recorded as an expense in the income statement and reduces the net income.

• There are various methods of depreciation such as straight-line, declining balance, and sum-of-the-years-digits.

• Depreciation is important for accurate financial reporting and tax purpose...read more