Manu Audit Trainee Interview Questions and Answers

Q1. Why u choose to work in EY
Ans. 
I chose to work in EY because of their reputation for excellence and the opportunities for growth and development.
• EY has a strong reputation for excellence in the audit industry.

• They provide extensive training and development programs for their employees.

• Working at EY offers opportunities to work with a diverse range of clients and industries.

• The company values work-life balance and promotes a supportive and collaborat...read more
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Q2. What u do during free time
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During my free time, I enjoy reading books, playing sports, and exploring new places.
• Reading books: I love diving into different genres and expanding my knowledge.

• Playing sports: I enjoy staying active and participating in team sports like basketball and soccer.

• Exploring new places: I have a passion for travel and enjoy discovering new cultures and cuisines.
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Q3. How to keep yourself up to date.
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To keep myself up to date, I regularly engage in continuous learning, utilize various resources, attend relevant events, and network with professionals in my field.
• Engage in continuous learning by reading books, articles, and research papers related to audit and accounting.

• Utilize online platforms, such as webinars, online courses, and podcasts, to stay updated on industry trends and developments.

• Attend seminars, works...read more
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These tests evaluate various cognitive functions and are commonly used in educational settings, job recruitment, and career counseling

Group Discussion (GD) session requires careful planning and execution to ensure it is effective in assessing participants' communication, leadership, teamwork, and problem-solving skills

Q1. During a job interview, Human Resources (HR) professionals often ask a variety of questions to assess a candidate's qualifications, experience, and fit for the company culture.
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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?
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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. How would you audit accounts receivable
Ans. 
Accounts receivable audit involves verifying the existence, accuracy, and valuation of receivables.
• Confirming receivables with customers directly

• Reviewing aging reports to identify overdue accounts

• Testing the accuracy of recorded sales and receivables

• Analyzing allowance for doubtful accounts for adequacy

• Reconciling receivable balances with general ledger
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Q2. What if you don't receive the balance confirmation you've sent
Ans. 
If balance confirmation is not received, follow up with the client and document all communication.
• Follow up with the client via email or phone call to request the confirmation again

• Document all communication and efforts made to obtain the confirmation

• Consider alternative methods of verification such as reviewing bank statements or conducting additional audit procedures

• Discuss the issue with the audit team and superviso...read more
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Q3. Journal entry for disposal of asset
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Journal entry for disposal of asset involves removing the asset from the balance sheet and recognizing any gain or loss.
• Debit the accumulated depreciation account to remove the asset's accumulated depreciation

• Debit the asset account to remove the asset's original cost

• Credit the asset disposal account for the asset's carrying amount

• Recognize any gain or loss by comparing the asset's carrying amount with the disposal pro...read more
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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
Ans. 
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
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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
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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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