ISOLIC INFOTECH Interview Questions and Answers

The first thing to consider while starting statutory audit is understanding the client's business and industry.

• Understand the client's business and industry

• Identify the key risks and controls

• Assess the materiality of the financial statements

• Plan the audit approach and procedures

• Consider any regulatory requirements or changes

• Review prior year's audit work

• Communicate with the client and their management team

The Russia war has negatively impacted the IT business due to economic sanctions and decreased foreign investment.

• Economic sanctions have limited access to technology and equipment needed for IT businesses

• Decreased foreign investment has led to a lack of funding for IT startups and projects

• The war has also disrupted supply chains and caused instability in the market

• Cybersecurity concerns have increased due to potential hacking and data breaches during the conflict

Book closure process is the process of closing the register of shareholders to determine the list of shareholders eligible for dividends.

• Book closure process is done by companies to determine the list of shareholders eligible for dividends.

• During this process, the register of shareholders is closed for a specific period of time.

• Only those shareholders who are on the list at the end of the book closure period are eligible for dividends.

• Book closure dates are announced in advan...read more

Revenue recognition for cars sold with insurance and maintenance services.

• Revenue should be recognized separately for the car sale, insurance, and maintenance services.

• If the insurance and maintenance services are bundled with the car sale, revenue should be allocated based on their relative standalone selling prices.

• If the insurance and maintenance services are sold separately, revenue should be recognized when the services are provided.

• The revenue recognition method should ...read more

Journal entries are records of financial transactions that are recorded in a company's general ledger.

• Debit and credit accounts are identified and recorded

• Each entry must have a corresponding debit and credit entry

• Entries must be recorded in chronological order

• Examples include recording sales revenue, expenses, and depreciation

• Journal entries are used to create financial statements

Purchase process in costing involves identifying the need, selecting suppliers, negotiating prices, placing orders, receiving goods, and making payments.

• Identify the need for the purchase

• Select potential suppliers and obtain quotes

• Negotiate prices and terms with the chosen supplier

• Place the order with the supplier

• Receive the goods and verify their quality and quantity

• Make payment to the supplier

Departure from accounting standards refers to deviating from the established principles and guidelines in accounting practices.

• Departure from accounting standards can lead to inaccurate financial reporting.

• It can also result in legal and regulatory issues.

• Examples of departure from accounting standards include misrepresenting financial statements, failing to disclose important information, and manipulating financial data.

• Companies may depart from accounting standards to make ...read more