Indian Oil Corporation Interview Questions and Answers

Material misstatement refers to errors or omissions in financial statements that could potentially impact decision-making by users of the statements.

• Material misstatement can include errors in recording transactions, misapplication of accounting principles, or intentional fraud.

• These misstatements can have a significant impact on the financial health of a company and may lead to legal consequences.

• Auditors are responsible for detecting and reporting material misstatements dur...read more

Ind AS 115 is a revenue recognition standard that outlines the principles for recognizing revenue from contracts with customers.

• Ind AS 115 is based on the core principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled.

• It replaces the existing revenue recognition guidance in Ind AS 18 and Ind AS 11.

• The standard provides a five-step model f...read more

Tax audit is required if turnover exceeds specified limit or income is below prescribed percentage of turnover.

• Tax audit is required if the turnover of a business exceeds Rs. 1 crore in case of a business and Rs. 50 lakhs in case of a profession.

• Tax audit is also required if the income of a business is less than 8% of the turnover and in case of a profession, if the income is less than 50% of the gross receipts.

• Tax audit is mandatory for certain specified professionals like d...read more

I have extensive experience in analyzing balance sheets to assess financial health and make strategic decisions.

• Utilized financial ratios like current ratio and debt-to-equity ratio to evaluate liquidity and leverage

• Identified trends in assets, liabilities, and equity to understand financial performance over time

• Performed variance analysis to compare actual results with budgeted or forecasted figures

• Used balance sheet analysis to identify potential risks and opportunities for...read more

AS application is used in company audits to ensure compliance with accounting standards.

• AS application is a tool used to check compliance with accounting standards during audits.

• It helps in identifying any discrepancies or non-compliance with accounting standards.

• AS application can be used to generate reports and recommendations for corrective actions.

• Examples of accounting standards include GAAP, IFRS, and SOX.

• AS application can also be used to monitor ongoing compliance wit...read more

Recent Company Audit amendments include changes in financial reporting standards and regulations.

• Changes in accounting standards such as ASC 606 for revenue recognition

• Updates in auditing regulations like PCAOB inspection reports

• Revisions in internal control requirements under SOX compliance

• Impact of COVID-19 on audit procedures and reporting