SATTRIX Information Security Interview Questions and Answers

Financial statements provide a snapshot of a company's financial health, including assets, liabilities, and equity. Trial balances ensure accuracy of financial records.

• Financial statements serve to provide stakeholders with an overview of a company's financial performance and position.

• Components of financial statements include balance sheet, income statement, cash flow statement, and statement of changes in equity.

• Balance sheet shows assets, liabilities, and equity at a speci...read more

Depreciation is the allocation of the cost of a tangible asset over its useful life. Land does not depreciate.

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

• It is calculated using methods such as straight-line, double declining balance, or units of production.

• Land is not depreciated because it is considered to have an indefinite useful life.

• Journal entries for depreciation involve debiting Depreciation Expense and crediting Accumu...read more

Audit is a systematic examination of financial records, statements, or operations to ensure accuracy and compliance with laws and regulations.

• Audit involves reviewing financial records, statements, or operations

• It aims to ensure accuracy, compliance with laws and regulations, and identify any discrepancies or fraud

• Auditors gather evidence, analyze data, and report findings to stakeholders

• Types of audits include financial audit, operational audit, compliance audit, and forensi...read more

Ratios are used to analyze financial performance and efficiency of a company.

• Profit Margin: Net income divided by total revenue, shows how much profit a company makes for every dollar of sales.

• Current Ratio: Current assets divided by current liabilities, measures a company's ability to pay its short-term obligations.

• Debt-to-Equity Ratio: Total debt divided by total equity, indicates the proportion of debt used to finance a company's assets.

• Return on Investment (ROI): Net prof...read more

The purpose of audit is to provide an independent assessment of an organization's financial statements or processes to ensure accuracy, compliance, and efficiency.

• Ensuring accuracy of financial statements

• Evaluating compliance with laws and regulations

• Identifying areas for improvement in processes and controls

• Providing assurance to stakeholders

• Detecting and preventing fraud or errors

• Enhancing transparency and accountability

• Examples: financial audit, operational audit, complian...read more