KPMG India Junior Auditor Interview Questions and Answers

Q1. What do you mean by deferred revenue?
Ans. 
Deferred revenue refers to income received by a company in advance of earning it, resulting in a liability on the balance sheet.
• Deferred revenue is also known as unearned revenue.

• It is recorded as a liability on the balance sheet until the revenue is recognized.

• Common examples include magazine subscriptions, annual maintenance contracts, and advance payments for services.

• Once the revenue is earned, it is recognized on ...read more
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Q2. Hiw would you reconcile bank balances at the end of the period?
Ans. 
Reconciling bank balances involves comparing the bank statement with the company's records to identify and resolve any discrepancies.
• Obtain the bank statement and compare it with the company's records of transactions.

• Identify any discrepancies such as missing deposits or withdrawals, bank errors, or outstanding checks.

• Adjust the company's records to match the bank statement by recording any necessary corrections.

• Ensure...read more
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Q3. What are the three major activities incvolved in cash flow statement? And in which category would you include purchase of fixed assets and repayment of loans?
Ans. 
The three major activities in cash flow statement are operating activities, investing activities, and financing activities. Purchase of fixed assets would fall under investing activities, while repayment of loans would fall under financing activities.
• Operating activities involve cash flows from day-to-day business operations, such as sales and expenses.

• Investing activities include cash flows related to the purchase and...read more
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Q4. What are the 5 steps of Revenue recognition?
Ans. 
The 5 steps of Revenue recognition are identification of the contract, identification of performance obligations, determination of transaction price, allocation of transaction price, and recognition of revenue as performance obligations are satisfied.
• Identification of the contract: Determine the existence of a contract with a customer.

• Identification of performance obligations: Identify the separate performance obligati...read more
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Q5. Why do you want to join Deloitte?
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I want to join Deloitte because of its reputation for providing excellent training and career development opportunities.
• Deloitte is known for its high-quality training programs which will help me develop my skills and knowledge in auditing.

• I am impressed by Deloitte's commitment to employee growth and advancement, which aligns with my career goals.

• I believe that working at Deloitte will provide me with the opportunity ...read more
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Q6. How would you audit fixed assets?
Ans. 
Fixed assets are audited by verifying physical existence, ownership, valuation, and depreciation methods.
• Verify physical existence by conducting physical inventory counts.

• Confirm ownership by reviewing title deeds and purchase agreements.

• Ensure accurate valuation by comparing book value to market value.

• Review depreciation methods and calculations for accuracy.

• Check for impairment indicators and assess if any assets nee...read more
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An aptitude test was conducted prior to being selected for Interviews

Q1. Questions based on Resume
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Q2. Questions relating to Accounting
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Q3. Questions relating to IFRS
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Q1. Self introduction
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Q2. Hobbies and passions
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Q3. Career goal in 5 years
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Q1. Talk about yourswlf
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How you dealing conflict

Q1. Tell us your major audit observations
Ans. 
Major audit observations include inadequate documentation, lack of segregation of duties, and insufficient controls.
• Inadequate documentation of transactions and processes

• Lack of segregation of duties leading to potential fraud risks

• Insufficient controls over financial reporting

• Non-compliance with regulatory requirements

• Weaknesses in IT security measures
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Q2. What checks shall be done in P2P Audit
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Checks in P2P Audit include vendor verification, invoice accuracy, approval process review, duplicate payments detection, and compliance with policies.
• Verify vendor information for accuracy and legitimacy

• Ensure invoices match purchase orders and goods received

• Review approval process to confirm proper authorization

• Detect and prevent duplicate payments

• Check for compliance with company policies and regulations
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Understand questions and Answer calmly

Q1. Tell me about yourself
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Q2. Are you ok with extra working hours
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It was easy and had quants, verbal lr and accounts.

It was a panel of 6 people.

Q1. Tell me about yourself
Ans. 
I am a detail-oriented individual with a strong background in accounting and a passion for ensuring accuracy and compliance.
• Graduated with a degree in Accounting from XYZ University

• Completed internships at ABC Accounting Firm, gaining experience in auditing procedures

• Proficient in using accounting software such as QuickBooks and Excel

• Strong analytical skills and attention to detail

• Excellent communication and teamwork a
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Q2. Why are you applying for this role
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I am applying for this role because I have a strong interest in auditing and a desire to develop my skills in this field.
• Passion for auditing and desire to learn

• Interest in financial analysis and compliance

• Strong attention to detail and analytical skills

• Ability to work well under pressure and meet deadlines
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Q1. What is your major audit observations
Ans. 
Some major audit observations include inadequate documentation, lack of segregation of duties, and ineffective internal controls.
• Inadequate documentation of transactions and processes

• Lack of segregation of duties leading to potential fraud or errors

• Ineffective internal controls resulting in increased risk of misstatements

• Examples: missing invoices, one person handling both cash receipts and disbursements, lack of appro
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Q2. Checklist of P2P audit
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A checklist of P2P audit includes vendor verification, invoice approval process, segregation of duties, and payment reconciliation.
• Verify vendor information and ensure accuracy

• Review invoice approval process for compliance with policies

• Ensure segregation of duties to prevent fraud

• Reconcile payments with invoices and purchase orders
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Q3. Checklist of HR audit
Ans. 
HR audit checklist includes reviewing policies, procedures, compliance, and employee records.
• Review HR policies and procedures to ensure compliance with laws and regulations

• Check employee records for accuracy and completeness

• Assess HR practices for effectiveness in recruitment, training, performance management, and employee relations

• Evaluate HR metrics and analytics to measure HR performance and identify areas for impr
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Q4. Tell us major SAP T codes
Ans. 
SAP T codes are transaction codes used in SAP systems to execute specific functions or tasks.
• Some major SAP T codes include: SE11 (Data Dictionary), SE38 (ABAP Editor), SE16 (Data Browser), VA01 (Create Sales Order), ME21N (Create Purchase Order)

• T codes are used to access different modules and functionalities within SAP systems

• Users can also create custom T codes for specific tasks or reports
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Q5. How you will audit Fixed Assets
Ans. 
Fixed assets audit involves verifying existence, valuation, and ownership of assets.
• Reviewing fixed assets register to ensure all assets are accounted for

• Physically inspecting assets to verify existence and condition

• Checking depreciation calculations to ensure accuracy

• Confirming ownership of assets through documentation

• Testing controls related to fixed assets management

• Reconciling fixed assets register with general led
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