20+ EY Global Delivery Services ( EY GDS) Consultant Interview Questions and Answers

No, the company will not process the claim.

• The policy was cancelled in June due to non-payment.

• The policyholder reinstated the policy in September.

• The claim arises in August, which is before the policy was reinstated.

• Since the policy was not active in August, the company will not process the claim.

Consolidation of subsidiary, associates, joint venture and calculation of goodwill and minority interest.

• Consolidation involves combining the financial statements of subsidiary, associates, and joint ventures with the parent company's financial statements.

• Goodwill is calculated as the excess of the purchase price over the fair value of the net assets acquired.

• Minority interest represents the portion of a subsidiary's net assets that is not owned by the parent company.

• Goodwill...read more

Various ML algorithms can be used to impute/treat outliers, including k-nearest neighbors, decision trees, and support vector machines.

• K-nearest neighbors can be used to impute missing values by finding the k closest data points and using their values to fill in the missing data.

• Decision trees can be used to identify and remove outliers by creating a tree that splits the data into groups based on their values.

• Support vector machines can be used to identify outliers by finding...read more

IND AS 116 is a new accounting standard introduced to bring consistency in lease accounting.

• IND AS 116 stands for Indian Accounting Standard 116.

• It replaces the previous standard, IND AS 17, and aligns with the International Financial Reporting Standards (IFRS) 16.

• The standard was introduced to address the issue of off-balance sheet financing and provide a more accurate representation of a company's financial position.

• Under IND AS 116, lessees are required to recognize most l...read more

Yes, OCI is included in EPS calculation under IND AS.

• Under IND AS, OCI is included in the calculation of EPS.

• OCI includes gains and losses that are not recognized in the income statement.

• EPS is calculated by dividing the net profit or loss attributable to shareholders by the weighted average number of shares outstanding.

• OCI items are included in the calculation of comprehensive income, which is then used to calculate EPS.

• Example: If a company has a net profit of 100 and OCI o...read more

Goodwill is impaired, not amortised. Impairment of assets is a process of recognizing a decrease in the value of an asset.

• Goodwill is not amortised, but tested for impairment annually or when there is an indication of impairment.

• Impairment of assets is a process of recognizing a decrease in the value of an asset.

• If the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired.

• Impairment losses are recognized in the income statement.

• Example: ...read more

Rewrite and reinstatement are two different methods of policy modification.

• Rewrite involves creating a new policy from scratch, while reinstatement involves restoring a lapsed policy.

• Rewrite may result in changes to coverage, premiums, and terms, while reinstatement typically restores the policy to its original state.

• Examples of when to use rewrite include major life changes or significant changes in risk, while reinstatement is used when a policy has lapsed due to non-paymen...read more

Audit considerations for inventory include accuracy, completeness, valuation, and existence.

• Verify physical inventory counts

• Check for obsolete or damaged inventory

• Ensure proper valuation methods are used

• Confirm existence of inventory through observation or documentation

• Review inventory cutoff procedures

• Assess adequacy of inventory reserves

• Consider potential fraud or theft risks

Foreign exchange gain/loss is accounted for by using the exchange rate at the transaction date and the settlement date.

• Foreign exchange gain/loss is the difference between the exchange rate at the transaction date and the settlement date

• For example, if a company buys goods from a foreign supplier and the exchange rate changes between the transaction date and the settlement date, there will be a gain or loss

• The gain or loss is recorded in the income statement under 'foreign ex...read more

Borrowing cost refers to the cost of borrowing money, including interest rates and fees.

• Borrowing cost includes interest rates and fees charged by lenders

• The cost of borrowing can vary depending on the type of loan and the borrower's creditworthiness

• Borrowing cost can be calculated using the annual percentage rate (APR)

• Examples of borrowing cost include mortgage interest rates, credit card interest rates, and loan origination fees

Sampling bias is a type of error that occurs when a sample is not representative of the population it is supposed to represent.

• Sampling bias can occur when the sample is too small or not randomly selected.

• Examples of sampling bias include self-selection bias, where participants choose to participate in a study, and survivorship bias, where only successful cases are included in the sample.

• Sampling bias can lead to inaccurate conclusions and generalizations about the population...read more

RTR stands for Ready to Run and PTP stands for Precision Time Protocol.

• RTR is a term used in the automotive industry to describe a car that is ready to be driven off the lot without any additional modifications.

• PTP is a protocol used to synchronize clocks in a network.

• PTP is often used in industrial automation and control systems.

• RTR and PTP are not directly related, but both are important in their respective fields.

I am a seasoned consultant with a strong track record of successfully managing and delivering projects.

• Introduce myself by highlighting my experience, skills, and qualifications

• Explain my approach to project management, including methodologies used and successful outcomes achieved

• Provide specific examples of projects I have worked on, detailing my role and contributions

Performance materiality is the amount set by auditors to reduce the risk of material misstatements in financial statements.

• Performance materiality is a concept used in auditing to determine the level of misstatement that would be considered material to the financial statements.

• It is set by auditors based on their professional judgment and is typically lower than overall materiality.

• The purpose of performance materiality is to ensure that the audit focuses on areas where misst...read more

Transfer pricing refers to the pricing of goods and services between related parties in different tax jurisdictions.

• It is used to determine the value of transactions between related parties for tax purposes.

• It is important for multinational companies to ensure compliance with transfer pricing regulations.

• Transfer pricing can be used to shift profits to lower tax jurisdictions, leading to potential tax avoidance.

• Examples of transfer pricing methods include comparable uncontrol...read more

Supervised ML is a type of machine learning where the algorithm is trained on labeled data to make predictions or classifications.

• Supervised learning involves a dataset with labeled examples

• The algorithm learns from the labeled data to make predictions on new, unlabeled data

• Examples include image classification, spam filtering, and predicting housing prices

• Common algorithms include decision trees, logistic regression, and neural networks

Cut off refers to the point at which something is no longer included or considered.

• Cut off can refer to a deadline for submitting something, such as a job application or college application.

• It can also refer to a minimum score or requirement needed to qualify for something, such as a scholarship or program.

• In finance, cut off can refer to the point at which a transaction is no longer included in a particular accounting period.

• In manufacturing, cut off can refer to the point a...read more

I handle intense situations by staying calm, prioritizing tasks, and seeking support when needed.

• Take deep breaths and focus on the task at hand

• Break down the situation into smaller, manageable tasks

• Communicate clearly with team members and stakeholders

• Ask for help or delegate tasks when necessary

• Reflect on the situation afterwards to learn and improve

• Example: During a high-pressure project deadline, I prioritized tasks and delegated responsibilities to team members to ensure...read more

Materiality refers to the significance or importance of information in relation to a specific context or decision-making process.

• Materiality is a concept used in various fields such as accounting, auditing, and law.

• It helps determine what information is relevant and should be considered in a particular situation.

• Materiality is subjective and depends on the specific circumstances and stakeholders involved.

• In accounting, materiality is used to assess the impact of financial inf...read more

Benchmarking study steps involve identifying metrics, selecting peers, collecting data, analyzing results, and implementing improvements.

• Identify metrics to benchmark against

• Select peers or companies to compare against

• Collect data on the identified metrics

• Analyze the results to identify areas for improvement

• Implement improvements based on the analysis

• Repeat the process periodically to track progress

Organizational structure refers to the way in which an organization is arranged in terms of roles, responsibilities, communication, and authority.

• Organizational structure defines how tasks are divided, grouped, and coordinated within an organization.

• It includes elements such as hierarchy, reporting relationships, communication channels, and decision-making processes.

• Common types of organizational structures include functional, divisional, matrix, and flat.

• For example, a funct...read more

Tax audit is conducted to verify the accuracy of tax returns filed by a company, while stat audit is conducted to verify the financial statements of a company.

• Tax audit is specifically focused on verifying the accuracy of tax returns filed by a company.

• Stat audit is focused on verifying the financial statements of a company for accuracy and compliance with accounting standards.

• Tax audit is usually conducted by tax authorities, while stat audit is typically conducted by extern...read more