Pawan Puri & Associates Audit Executive Interview Questions and Answers

ASM Audit stands for Area Sales Manager Audit, which involves evaluating the performance of sales managers in specific regions.

• ASM Audit assesses the effectiveness of sales strategies implemented by Area Sales Managers.

• It involves reviewing sales data, customer feedback, and performance metrics to identify areas for improvement.

• The goal of ASM Audit is to ensure that sales managers are meeting targets and driving reven...read more

Stock audit is a process of verifying the physical stock of a company to ensure accuracy and prevent fraud.

• Stock audit involves physically counting and verifying the inventory of a company.

• It helps in detecting discrepancies between the physical stock and the records maintained by the company.

• Stock audit is important for preventing theft, fraud, and mismanagement of inventory.

• It ensures that the company's financial sta...read more

ASM Audit is applicable to all entities listed on the stock exchange.

• ASM Audit is applicable to all entities listed on the stock exchange.

• It is also applicable to entities that are required to comply with the Securities and Exchange Commission (SEC) regulations.

• ASM Audit is typically required for public companies, financial institutions, and other regulated entities.

• Entities that are subject to ASM Audit must ensure co...read more

Threshold limits for stock audit and ASM audit vary based on company policies and regulations.

• Threshold limit for stock audit is typically set by the company based on the value of stock held.

• Threshold limit for ASM audit is usually determined by the turnover of the company.

• For example, a company may require a stock audit for inventory exceeding $1 million and an ASM audit for turnover exceeding $10 million.

• These limits...read more

Asset management refers to the process of managing a company's assets to maximize their value and minimize risk.

• Asset management involves tracking, maintaining, and disposing of assets.

• It includes financial planning, inventory management, and risk management.

• Examples of assets that are managed include cash, investments, equipment, and property.

• Effective asset management can help improve efficiency, reduce costs, and in...read more

Various types of ratios include liquidity ratios, profitability ratios, efficiency ratios, and solvency ratios.

• Liquidity ratios measure a company's ability to meet short-term obligations (e.g. current ratio, quick ratio)

• Profitability ratios assess a company's ability to generate profit (e.g. return on assets, return on equity)

• Efficiency ratios evaluate how well a company utilizes its assets and liabilities (e.g. asset ...read more

Drawing power is calculated by subtracting the margin money from the total value of securities pledged.

• Calculate the total value of securities pledged by the borrower.

• Determine the margin money required by the lender.

• Subtract the margin money from the total value of securities pledged to get the drawing power.

• Drawing Power = Total Value of Securities - Margin Money

Inventory holding period refers to the average number of days that a company holds its inventory before selling it.

• It is a measure of how efficiently a company manages its inventory.

• A shorter inventory holding period indicates faster turnover and better liquidity.

• Calculation: (Average Inventory / Cost of Goods Sold) x 365 days

• Example: Company A has an average inventory of $100,000 and COGS of $400,000. Inventory holdin...read more