Alldigi Tech Interview Questions and Answers

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 O/s in the audit report, including the amount, aging, and...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

Double entry is a fundamental accounting concept where every transaction has equal and opposite effects on at least two accounts.

• Every transaction involves at least two accounts - one account is debited and another account is credited.

• Debits and credits must always balance, ensuring the accounting equation (Assets = Liabilities + Equity) remains in equilibrium.

• Double entry system helps in maintaining accuracy and preventing errors in financial records.

• For example, when a comp...read more

There are four main financial statements: balance sheet, income statement, cash flow statement, and statement of changes in equity.

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

• Income statement shows a company's revenues and expenses over a period of time.

• Cash flow statement shows how cash and cash equivalents flow in and out of a company.

• Statement of changes in equity shows the changes in equity during a specific period.

A vatable sale is recorded by issuing a sales invoice with VAT included and recording the VAT separately.

• Issue a sales invoice with the total amount including VAT

• Separately record the VAT amount charged to the customer

• Ensure the VAT amount is correctly calculated based on the applicable rate

• Include the VAT amount in the total sales revenue for reporting purposes