Can you give any example of an Audit and Accounting issue that you faced during your articleship and how did you resolve that?

Question

Accepted Answer

During my articleship, I faced an audit and accounting issue related to revenue recognition.

The issue was that a client had recognized revenue from a long-term contract upfront, which was not in accordance with the accounting standards.
I resolved the issue by thoroughly reviewing the contract terms and conditions, and comparing them with the revenue recognition criteria specified in the accounting standards.
I also consulted with senior auditors and accounting experts to ensure that my understanding and approach were correct.
After identifying the issue, I discussed it with the client and explained the proper revenue recognition method based on the contract terms and accounting standards.
I provided them with the necessary guidance and recommendations to rectify the accounting treatment and adjust their financial statements accordingly.
Throughout the process, I maintained clear communication with the client and ensured that they understood the rationale behind the recommended changes.
By addressing the issue promptly and accurately, we were able to ensure compliance with accounting standards and present a true and fair view of the client's financial statements.

Accepted Answer

Hi I am from Technical Consulting. Audit and Accounting is done by different consulting team. Regards, Sandeep

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