Giz Technical Advisor Interview Questions and Answers

Key audit matters are significant areas of the audit that require the most attention and have the highest risk of material misstatement.

• Revenue recognition

• Impairment of assets

• Valuation of inventory

• Going concern

• Related party transactions

• Taxation

• Litigation and claims

• Acquisitions and disposals

• Pensions and other post-employment benefits

• Financial instruments

• Business continuity and disaster recovery

• IT systems and controls

Non deduction of TDS can lead to penalties and legal consequences.

• Non deduction of TDS can result in penalties and interest charges.

• The taxpayer may also face legal consequences and prosecution.

• The deductee may face difficulties in claiming credit for the tax deducted at source.

• Non deduction of TDS can also lead to increased scrutiny from tax authorities.

• For example, if an employer fails to deduct TDS on salary payment...read more

Materiality is the concept of determining the significance or importance of information in financial reporting.

• Materiality refers to the threshold at which information becomes relevant to users of financial statements.

• It is a subjective judgment based on the nature and size of the item or error being evaluated.

• Materiality is determined by considering both quantitative and qualitative factors.

• Quantitative factors includ...read more

IND AS on Revenue recognition and Lease income

• IND AS 115 governs revenue recognition

• Lease income is governed by IND AS 116

• Revenue recognition is based on the transfer of control

• Lease income is recognized over the lease term

• Both standards require significant judgement and estimation

Approximately 1 million Anu Malik music CDs were sold in 1995.

• Anu Malik was a popular music composer in the 90s

• CDs were the primary mode of music distribution in 1995

• Assuming Anu Malik's popularity, 1 million CDs sold seems reasonable

Increase Starbucks sales in India case

• Conduct market research to understand local preferences and culture

• Develop a menu that caters to Indian tastes, such as adding more tea-based drinks

• Partner with local businesses and influencers to increase brand awareness

• Offer promotions and discounts to attract new customers

• Expand store locations to reach more customers in different regions

Audit assertions are the claims made by management regarding the accuracy and completeness of financial statements.

• Audit assertions are used by auditors to assess the risk of material misstatement in financial statements.

• There are six types of audit assertions: existence, completeness, accuracy, valuation, rights and obligations, and presentation and disclosure.

• For example, existence assertion refers to whether the ass...read more