Unotech Software Interview Questions and Answers

Audit of a company involves examining financial records, internal controls, and compliance with regulations.

• Understand the company's business operations and industry standards

• Review financial statements and supporting documents

• Assess internal controls and identify any weaknesses

• Test transactions for accuracy and completeness

• Ensure compliance with laws and regulations

• Prepare audit reports with findings and recommendations

Materiality is calculated based on factors like size, nature, and risk of the financial statements.

• Determine the base amount for materiality (e.g. total assets, total revenue)

• Apply a percentage to the base amount to calculate materiality threshold (e.g. 5% of total assets)

• Consider qualitative factors like the nature of the entity, industry regulations, and potential impact on users of the financial statements

• Adjust materiality based on specific risks or circumstances of the a...read more

Materiality is the concept of determining the significance or importance of an item or event in relation to the financial statements.

• Materiality helps auditors decide what information to focus on during an audit

• It is based on the size, nature, and circumstances of an item or event

• Materiality is subjective and can vary depending on the context

• Examples include large dollar amounts, significant errors, and key transactions

AS2 is a standard for secure data transmission between businesses, with audit considerations including data integrity, authentication, and non-repudiation.

• AS2 stands for Applicability Statement 2

• It is a protocol used for secure and reliable data transmission over the internet

• Audit considerations include ensuring data integrity during transmission

• Authentication of the sender and receiver to prevent unauthorized access

• Non-repudiation to ensure that the sender cannot deny sendin...read more

The three lines of defence refer to the roles and responsibilities of different functions within an organization to manage risks effectively.

• First line of defence: Operational management responsible for identifying, assessing, and managing risks on a day-to-day basis.

• Second line of defence: Risk management and compliance functions that oversee and support the first line by establishing policies, procedures, and controls.

• Third line of defence: Internal audit function that prov...read more