EY Global Delivery Services ( EY GDS) Senior Associate Interview Questions and Answers for Experienced

IFRS 15 is a revenue recognition standard that outlines principles for recognizing revenue from contracts with customers.

• IFRS 15 provides a single, comprehensive revenue recognition model for all contracts with customers.

• It requires entities to identify performance obligations in a contract and allocate the transaction price to each obligation based on their standalone selling prices.

• Revenue is recognized when control ...read more

Testing debtors more than 3 years involves thorough analysis of financial records and communication with debtors.

• Review financial statements for outstanding debts older than 3 years

• Contact debtors directly to inquire about the status of the debt and attempt to collect payment

• Consider legal action if necessary to recover the debt

• Evaluate the likelihood of collecting the debt and adjust financial records accordingly

Toe in audit refers to the practice of comparing the financial statements of a company with industry standards to identify any discrepancies.

• Toe in audit helps in identifying any potential errors or fraud in the financial statements.

• It involves comparing the financial ratios, performance metrics, and key indicators of a company with industry benchmarks.

• By conducting toe in audit, auditors can assess the financial healt...read more

TOD in audit stands for Test of Details, which involves examining individual transactions or account balances to ensure accuracy and completeness.

• TOD is a detailed examination of specific transactions or account balances in an audit.

• It focuses on verifying the accuracy and completeness of financial information.

• Examples of TOD include testing the existence of inventory by physically counting items, or confirming account...read more

Risk of material misstatement procedure is a process to identify and assess the risk of errors or fraud in financial statements.

• The procedure involves understanding the entity and its environment, including internal controls.

• It also includes assessing the risks of material misstatement due to fraud or error.

• The auditor then designs and performs audit procedures to address the identified risks.

• Examples of procedures inc...read more