10+ ITC Infotech Interview Questions and Answers

To identify credit in BRS from unknown source, analyze transaction details, check for missing invoices or receipts, and investigate further.

• Review transaction details in BRS for any clues or references to the unknown source

• Check for missing invoices or receipts that could potentially explain the credit

• Investigate further by reaching out to relevant departments or vendors for clarification

• Compare the credit amount with other transactions to look for patterns or anomalies

• Docume...read more

Open items in BRS are categorized based on their nature and status, such as outstanding checks, deposits in transit, bank errors, etc.

• Categorize open items as per their nature, such as outstanding checks, deposits in transit, bank errors, etc.

• Assign status to open items like reconciled, unreconciled, in progress, etc.

• Keep track of any discrepancies or issues related to open items for further investigation.

• Regularly update and reconcile open items to ensure accuracy in the ban...read more

Reconciling a ledger involves comparing and adjusting the balances to ensure they match.

• Gather all relevant financial documents and records

• Compare the transactions in the ledger with the corresponding entries in the bank statement

• Identify any discrepancies or errors

• Adjust the balances by making corrections or journal entries

• Ensure that the ending balances match after reconciliation

Intercompany reconciliation is the process of ensuring that transactions between different entities within the same company are accurately recorded and balanced.

• It involves comparing and matching transactions between intercompany accounts to identify and resolve any discrepancies.

• Common discrepancies include differences in amounts, timing, or recording errors.

• The goal is to ensure that the financial statements of each entity accurately reflect the transactions and balances wi...read more

Rent paid for 3 months journal entry involves debiting Rent Expense and crediting Cash or Accounts Payable.

• Debit Rent Expense account for the total rent amount paid for 3 months

• Credit Cash account if rent is paid in cash or Accounts Payable if rent is paid on credit

• Include the dates of the rent payments in the journal entry

• Ensure the journal entry is balanced with debits equaling credits

Bank reconciliation is the process of comparing a company's records to its bank statement to ensure they match.

• Bank reconciliation involves comparing the company's internal financial records with the bank statement to identify any discrepancies.

• It helps in identifying errors, fraud, or missing transactions.

• Adjustments are made to the company's records to reconcile the differences between the two sets of data.

• Common items in a bank reconciliation include outstanding checks, de...read more

Deferred tax asset/liability is the difference between tax payable and tax paid in a period due to timing differences.

• Deferred tax asset arises when tax paid is more than tax payable in a period due to timing differences.

• Deferred tax liability arises when tax payable is more than tax paid in a period due to timing differences.

• It is calculated using the tax rate that is expected to apply in the period when the asset/liability is realized or settled.

• Examples of timing differenc...read more

The most important financial statement is the income statement as it shows a company's profitability over a period of time.

• The income statement shows a company's revenues, expenses, and net income, providing insight into its financial performance.

• Investors and analysts often use the income statement to assess a company's profitability and growth potential.

• Comparing income statements from different periods can help identify trends and potential areas for improvement.

• Key metric...read more

Ind AS 116 requires disclosures related to leases.

• Disclosure of lease liabilities and right-of-use assets

• Information about lease terms, payments, and options

• Details of variable lease payments and lease incentives

• Information about leases that have not yet commenced

• Details of significant leasing arrangements

• Disclosure of the impact of Ind AS 116 on financial statements

Experience in Record to report involves reconciling financial data from various sources to ensure accuracy and compliance.

• Experience in preparing financial statements and reports

• Ability to analyze and reconcile data from different systems

• Knowledge of accounting principles and regulations

• Experience in identifying and resolving discrepancies

• Proficiency in using accounting software and tools

Implemented automated reconciliation process resulting in 50% reduction in errors

• Identify bottlenecks in current reconciliation process

• Implement automation tools to streamline data matching

• Regularly review and update reconciliation procedures

• Provide training to staff on new processes and tools

My greatest achievement till date is successfully leading a team to implement a new reconciliation system, resulting in a 20% increase in efficiency.

• Led a team to implement a new reconciliation system

• Achieved a 20% increase in efficiency

• Received recognition from senior management for the successful project completion

Financial statements are formal records of the financial activities and position of a business, person, or other entity.

• Financial statements include the balance sheet, income statement, and cash flow statement.

• They provide information on the financial performance, financial position, and cash flows of an entity.

• Balance sheet shows assets, liabilities, and equity at a specific point in time.

• Income statement shows revenues, expenses, and profits over a period of time.

• Cash flow ...read more

Types of risks include strategic, operational, financial, compliance, and reputational risks.

• Strategic risk: Risks related to the organization's long-term goals and objectives.

• Operational risk: Risks arising from internal processes, systems, or people.

• Financial risk: Risks related to financial markets, investments, or funding.

• Compliance risk: Risks associated with failing to comply with laws, regulations, or industry standards.

• Reputational risk: Risks that can damage the orga...read more

Secondary risk is a risk that arises as a result of implementing a risk response plan.

• Secondary risks are risks that are not initially identified but emerge as a result of implementing risk response plans.

• These risks can be caused by the chosen mitigation strategy or by the impact of the primary risk itself.

• It is important to monitor and manage secondary risks to prevent them from becoming major issues.

• Examples include implementing a new software system to address a security ...read more

Risk appetite refers to the level of risk an organization is willing to accept in pursuit of its objectives.

• Risk appetite is determined by the organization's tolerance for risk and its overall strategic goals.

• It helps in setting boundaries for risk-taking activities and decision-making processes.

• Different organizations have different risk appetites based on their industry, size, and risk management culture.

• For example, a financial institution may have a low risk appetite due ...read more

Accrual refers to the recognition of revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Accrual accounting matches revenues with expenses in the same accounting period

• It provides a more accurate representation of a company's financial position

• Accruals are recorded as adjusting journal entries at the end of an accounting period

• Examples include accrued interest, salaries payable, and accounts receivable