KPMG APAC Audit Associate Interview Questions and Answers

Q1. Case study on Ind as 115. Timing of recognition as revenue of Amount provided for training employees for a specific assignment
Ans. 
Under Ind AS 115, revenue for training employees for a specific assignment should be recognized when the training services are provided.
• Revenue should be recognized over time as the training services are provided.

• The amount provided for training employees should be allocated to each period based on the progress of the training.

• The timing of revenue recognition should align with the timing of when the training services ...read more
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Q2. Ind as 116 case study
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Q3. Ind as 2 calculation of inventory cost as per fifo
Ans. 
Ind AS 2 requires inventory cost to be calculated using the FIFO method.
• Under FIFO method, the oldest costs are assigned to inventory first.

• Cost of goods sold is calculated using the oldest costs first.

• Ending inventory is valued at the most recent costs.

• Example: If a company purchases inventory at $10, $12, and $15, under FIFO method, the inventory sold will be valued at $10 first.

• Example: If the company sells 100 unit...read more
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Q4. Ind as 102 journal entries
Ans. 
Ind AS 102 journal entries are used to record share-based payments in financial statements.
• Ind AS 102 requires companies to recognize share-based payments as an expense in their financial statements.

• Journal entries for share-based payments typically involve debiting an expense account and crediting either equity or liability accounts.

• For example, if a company grants stock options to employees, the journal entry would i...read more
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Q1. Questions based off resume
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Q1. What is assertion
Ans. 
Assertion is a claim or statement made by management regarding the financial statements.
• Assertions are made by management to ensure the accuracy and completeness of financial statements.

• There are different types of assertions such as existence, completeness, valuation, rights and obligations, etc.

• For example, the assertion of existence would state that all reported assets and liabilities actually exist.

• Auditors test th...read more
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Q2. What is materiality
Ans. 
Materiality is the concept of determining the significance or importance of an item or event in relation to 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

• For example, a small error in a company's financial statements may not be consider...read more
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Q3. Different types of audit opinion
Ans. 
Different types of audit opinions include unqualified, qualified, adverse, and disclaimer.
• Unqualified opinion: clean opinion, no material misstatements found

• Qualified opinion: some limitations or scope restrictions, but overall financial statements are fairly presented

• Adverse opinion: significant material misstatements found, financial statements are not fairly presented

• Disclaimer opinion: auditor unable to form an opi...read more
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Easy 4 sections general questions easily cleared

My topic was ev cars vs petrol cars. All were shortlisted.

Q1. Why you want to join rsm
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Q2. What is suspense account
Ans. 
A suspense account is a temporary account used to record transactions for which there is uncertainty about the appropriate account to use.
• Used when there is uncertainty about the correct account to use

• Temporary holding place for transactions

• Helps prevent errors in financial statements

• Commonly used in accounting to temporarily hold transactions until they can be properly classified
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Q1. What is Materiality?
Ans. 
Materiality refers to the significance of an item or event in relation to financial statements.
• Materiality is a concept used in auditing to determine the importance of an item or event in relation to financial statements.

• It is used to determine whether an item or event is significant enough to affect the decision-making of users of financial statements.

• Materiality is subjective and depends on the context of the financi...read more
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Q2. What is Audit Risk? Audit Procedure for an Account Balance Audit Procedure for Cash & Bank Balance
Ans. 
Audit risk is the risk that an auditor expresses an inappropriate opinion on financial statements.
• Audit risk is the risk that the auditor may issue an incorrect opinion on the financial statements.

• It is the risk that the auditor may fail to detect material misstatements in the financial statements.

• Audit risk is composed of inherent risk, control risk, and detection risk.

• Inherent risk is the risk of material misstatemen...read more
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Q1. Same as 1 round with almost similar basic question based on Auditing
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Q1. Types of leases? Can a contract be verbal ? what are the five step approach of revenue recognition ?
Ans. 
Types of leases include finance and operating leases. Verbal contracts are valid but harder to enforce. The five step approach of revenue recognition includes identification, separation, transaction price, allocation, and recognition.
• Types of leases: finance lease (capital lease) and operating lease

• Verbal contracts are valid but harder to enforce compared to written contracts

• Five step approach of revenue recognition: i...read more
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Q2. Why here in crowe , and not in any other big 4s?
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Moderate level asking questions on English, math and accounting

Q1. Tell me about yourself
Ans. 
I am a detail-oriented individual with a strong background in accounting and auditing.
• Graduated with a degree in Accounting

• Completed internships at accounting firms

• Strong analytical and problem-solving skills

• Experience with financial statement analysis

• Currently pursuing CPA certification
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Q2. Why did you choose do to audit
Ans. 
I chose to do audit because I enjoy analyzing financial data and ensuring accuracy and compliance.
• I have a strong attention to detail and enjoy working with numbers

• I am interested in understanding how businesses operate and identifying areas for improvement

• I value the importance of maintaining financial integrity and ensuring regulatory compliance
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An online English assessment via Google Forms, MCQ. There were also essay-type of questions usually about dealing with certain workplace situations.

Q1. Why do you want to join this company?
Ans. 
I want to join this company because of its strong reputation in the industry and its commitment to excellence in audit services.
• The company has a strong reputation in the industry for providing high-quality audit services.

• I am impressed by the company's commitment to excellence and continuous improvement in its audit processes.

• The company offers great opportunities for professional growth and development.

• I believe that...read more
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Q2. How did you showcase your leadership during college?
Ans. 
During college, I showcased my leadership through various extracurricular activities and group projects.
• Served as the president of the Finance Club, organizing events and leading a team of members.

• Led a group project in my accounting class, delegating tasks and ensuring timely completion.

• Volunteered as a mentor for incoming freshmen, providing guidance and support.

• Participated in a leadership development program, where...read more
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Q1. Tell me something about yourself.
Ans. 
I am a detail-oriented and analytical individual with a strong background in accounting and auditing.
• I have a Bachelor's degree in Accounting and have completed internships at two reputable accounting firms.

• I am proficient in using auditing software and have experience in conducting financial statement audits.

• I have excellent analytical skills and attention to detail, which allows me to identify discrepancies and ensur...read more
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Q2. What do you know about the role you're applying for?
Ans. 
The role of an Audit Associate involves conducting financial audits and ensuring compliance with regulations.
• Conducting financial audits to assess the accuracy and integrity of financial statements

• Evaluating internal controls and identifying areas of risk

• Preparing audit reports and communicating findings to clients

• Assisting in the development of audit plans and procedures

• Collaborating with audit teams and clients to ga...read more
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