KPMG India Tax Associate 2 Interview Questions and Answers

Q1. Smallcase study for depreciation adjustments
Ans. 
Depreciation adjustments case study
• Calculate depreciation expense using straight-line method

• Adjust accumulated depreciation for prior years

• Record any disposals or impairments of assets

• Review useful life and salvage value assumptions

• Ensure compliance with accounting standards and tax regulations
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Q2. Favorable adjustments
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Favorable adjustments refer to changes made to financial statements that improve the overall financial position of a company.
• Favorable adjustments can include corrections to errors, revaluations of assets, or changes in accounting estimates.

• These adjustments can result in higher revenues, lower expenses, or increased assets on the balance sheet.

• For example, a company may discover an error in its inventory valuation, le...read more
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Q3. Unfavourable adjustments
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Unfavourable adjustments refer to changes made to financial statements that negatively impact the company's performance.
• Unfavourable adjustments can include write-downs of assets, increased liabilities, or lower revenue recognition.

• These adjustments are typically made to reflect a more accurate representation of the company's financial position.

• Examples of unfavourable adjustments include recognizing a loss on an inves...read more
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Q4. Form net income line items
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Forming net income line items involves categorizing revenues and expenses to calculate the overall profit or loss.
• Identify all sources of revenue, such as sales, services, interest income, etc.

• List all expenses incurred, including salaries, rent, utilities, supplies, etc.

• Subtract total expenses from total revenue to calculate net income.

• Include any adjustments or extraordinary items that affect the final net income fig
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Q1. Salary expectations
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I had applied for the Canada Tax Consultant Role and the first round was the Versant and Aptitude test. First, HR called me for a basic discussion and informed me about the test rounds. The Versant round tested my English speaking, listening, and reading skills. After the Versant round, I took the aptitude test which had three sections - Logical reasoning, Accounting (including journal entries and B.Com related questions), and Excel-related questions.

Q1. Tell me about yourself, and your family
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I am a tax consultant with a passion for helping clients navigate complex tax laws. My family is supportive and close-knit.
• I have been working as a tax consultant for the past 5 years

• I specialize in corporate tax planning and compliance

• My family consists of my parents, my spouse, and two children

• We enjoy spending quality time together on weekends
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Q2. Asked about my job roles in my previous company
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Q3. How did you cope with the previous tax season, and how many hours did you work last tax season?
Ans. 
I coped with the previous tax season by managing my time effectively and working long hours when necessary.
• I prioritized tasks and created a schedule to ensure all deadlines were met

• I communicated effectively with clients to gather necessary information in a timely manner

• I worked an average of 60 hours per week during the tax season

• I made sure to take breaks and practice self-care to avoid burnout
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Q4. Why are you leaving your current company
Ans. 
Seeking new opportunities for professional growth and development.
• Looking for new challenges and opportunities to expand my skills

• Interested in exploring different areas of tax consulting

• Seeking a company with better career advancement opportunities
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Q1. Tell me about yourself and your family and also about your friends.
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I am a tax consultant with a loving family and a close-knit group of friends.
• I am a tax consultant by profession

• I have a supportive and loving family

• I have a close group of friends who I enjoy spending time with
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Q2. Have you done any extracurricular activities during your college
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Yes, I was actively involved in the finance club and volunteered for tax preparation workshops.
• Participated in finance club activities

• Volunteered for tax preparation workshops

• Organized fundraising events for charity

• Attended seminars on tax laws and regulations
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Q3. What is your Hobby?
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My hobby is photography. I love capturing moments and exploring different perspectives through my camera lens.
• I enjoy experimenting with different lighting techniques

• I like to explore new locations and find unique angles for my shots

• I often participate in photography contests and exhibitions
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Q1. Resume related questions
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Q2. Which level transaction monitoring was performed
Ans. 
Level 1 transaction monitoring was performed.
• Monitoring of basic transactions for compliance and fraud detection

• Identifying and investigating suspicious activities

• Escalating flagged transactions for further review

• Ensuring adherence to regulatory requirements

• Examples: monitoring credit card transactions for unusual spending patterns, detecting potential money laundering activities
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Q1. Questions related to aml, 3 stages of money laundering
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Q2. Source of wealth source of fund, when rfi has to be done, whistle blower
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Q1. Screening round
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Q1. Technical auditing question
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Q1. Technical Audit questions
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Q1. Journal entries
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Q2. Accounting concepts complex
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Q3. Previous experience
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Q1. Questions were asked mostly about accounting standards and US Corp Tax Forms: a) what is deferred tax b) journal entry for prepaid rent c) journal entry for deferred laibilty d) explain any M1 adjustment...read more
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Q1. About yourself and your resume
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Q2. Why deloitte Where do you see yourself in 5 years
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I chose Deloitte for its reputation for excellence in tax consulting. In 5 years, I see myself as a senior tax consultant leading a team.
• Deloitte's reputation for excellence in tax consulting

• Opportunities for growth and development at Deloitte

• Desire to become a senior tax consultant and lead a team

• Commitment to continuous learning and professional development

• Building strong client relationships and delivering high-qual
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Q1. Journal enteries based questions
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Q2. Behavioural questions
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Q1. Journal entery based questions
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Q2. Behavioural based questions
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Q1. Introduce yourself
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I am a tax analyst with 5 years of experience in corporate tax planning and compliance.
• 5 years of experience in corporate tax planning and compliance

• Proficient in tax laws and regulations

• Skilled in financial analysis and reporting

• Strong attention to detail and problem-solving skills
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Q2. Journal entry of outstanding expense
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The journal entry for recording an outstanding expense involves debiting the expense account and crediting the accounts payable account.
• Debit the expense account to increase the expense amount on the income statement

• Credit the accounts payable account to show the liability owed to the vendor

• Example: Debit Rent Expense $1,000 and Credit Accounts Payable $1,000 for outstanding rent expense
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Q3. Difference between cashflow statement and fundflow statement
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Cashflow statement shows inflows and outflows of cash, while fundflow statement shows changes in financial position.
• Cashflow statement focuses on cash transactions, while fundflow statement focuses on changes in financial position.

• Cashflow statement helps in assessing liquidity, while fundflow statement helps in analyzing sources and uses of funds.

• Cashflow statement includes operating, investing, and financing activiti...read more
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Q4. Journal entry of purchase of furniture
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The journal entry for the purchase of furniture involves debiting the Furniture account and crediting the Cash or Accounts Payable account.
• Debit the Furniture account to increase the asset value

• Credit the Cash account if purchased with cash

• Credit the Accounts Payable account if purchased on credit

• Example: Debit Furniture $1,000, Credit Cash $1,000
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Q1. Introduce yourself
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I am a tax analyst with 5 years of experience in corporate tax planning and compliance.
• 5 years of experience in corporate tax planning and compliance

• Strong knowledge of tax laws and regulations

• Skilled in financial analysis and reporting

• Proficient in tax software such as TurboTax and QuickBooks
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Q2. Preferred Location
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I am open to any location that offers a challenging work environment and opportunities for growth.
• Open to relocation for the right opportunity

• Interested in locations with strong job markets

• Seeking a location with a diverse community and cultural opportunities
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