Lodha & Company Interview Questions, Process, and Tips

Audit is a process of examining financial records to ensure accuracy and compliance, privilege of private company refers to limited liability of shareholders, entry of sale of machine involves recording the transaction in the accounting system, computation of basic income involves calculating the total income before deductions.

• Audit involves examining financial records to ensure accuracy and compliance with regulations...read more

Emphasis on matter paragraph highlights significant matters in financial statements while key audit matter focuses on significant audit matters.

• Emphasis on matter paragraph is included in the auditor's report while key audit matter is a separate section.

• Emphasis on matter paragraph highlights significant matters in the financial statements such as going concern, related party transactions, and significant accounting po...read more

Provision is a liability that is uncertain in timing or amount, while reserve is a portion of profits set aside for a specific purpose.

• Provision is an estimated expense that a company sets aside in its accounts to cover a potential future liability.

• Reserve is a portion of profits that a company sets aside for a specific purpose, such as to fund future expansion or to pay dividends.

• Provision is recognized as an expense ...read more

Contingent assets and liabilities are potential future events that may or may not occur.

• Contingent assets are potential assets that may arise from past events, but their existence is uncertain and depends on future events.

• Contingent liabilities are potential obligations that may arise from past events, but their existence is uncertain and depends on future events.

• Contingent assets and liabilities are disclosed in the f...read more

Capital gains are calculated by subtracting the cost of acquisition from the sale price of an asset.

• Determine the sale price of the asset

• Determine the cost of acquisition of the asset

• Subtract the cost of acquisition from the sale price to get the capital gain

• Apply any applicable exemptions or deductions to arrive at the taxable capital gain

Audit methodology involves examining key financial line items, BRS is used for bank reconciliation, types of audit reports include unqualified, qualified, adverse, and disclaimer, external balance confirmations are used to verify account balances, Sch III refers to Schedule III of the Companies Act which outlines the format for financial statements.

• Audit methodology involves detailed examination of key financial line i...read more