PKF International Interview Questions and Answers

Q1. Types of Leases as per Ind AS 116
Ans. 
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.
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Q2. Debtor O/s from 3 years. How will you deal with it in audit report?
Ans. 
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
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Q3. What are the steps you follow while auditing Sundry Creditors?
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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
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Q4. Various other questions based on my Resume & sectors which I have worked with.
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1.What Strategy Do I Use When Auditing?
2.What is the role as a senior Auditor?
3.What are the differences between strategic control and operational control

Q1. 1.Why you are select our company? 2.How long work with us?
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Q1. Process Knowledge, Lacuna Identified and mitigation procedure.
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Q1. Future Aspects, Growth Terminology and Learning aspects
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Numeeucal, logical reasoning and essay on general topic questions

Q1. What is your underatanding of double entry?
Ans. 
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 preve...read more
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Q2. How many financial statements are there
Ans. 
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 show...read more
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Q3. How would you record a vatable sale
Ans. 
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
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