PKF International Audit Senior Interview Questions and Answers

Types of leases under Ind AS 116 include finance leases and operating leases.

• Finance leases involve transferring substantially all risks and rewards of ownership to the lessee.

• Operating leases do not transfer risks and rewards of ownership to the lessee.

• Examples of finance leases include long-term equipment leases, while examples of operating leases include short-term office space rentals.

Debtor O/s from 3 years should be investigated thoroughly and disclosed appropriately in the audit report.

• Review the aging of the debtor and assess the collectability of the outstanding amount.

• Investigate the reasons for the outstanding balance, such as disputes, credit terms, or financial difficulties.

• Consider the need for a provision for bad debts if the debt is deemed uncollectible.

• Disclose the details of the debtor...read more

Steps followed while auditing Sundry Creditors

• Verify the existence of the creditors by confirming with the company's records

• Review the aging schedule to ensure accuracy of outstanding balances

• Check for any unrecorded liabilities or duplicate payments

• Confirm balances with creditors through direct communication or statements

• Investigate any significant discrepancies or unusual transactions