10+ Homesfy Realty Interview Questions and Answers

Answering questions on revenue recognition, AR checking, and audit opinion.

• For returnable policy goods, revenue is recognized only when the customer confirms acceptance of the goods.

• AR checking involves verifying the accuracy of the accounts receivable balance by reviewing invoices, payments, and credit memos.

• At year end, AR checking involves confirming outstanding balances with customers and assessing the collectability of any doubtful accounts.

• Audit opinion is the conclusio...read more

I will cross-check the information with reliable sources and verify the data for accuracy and completeness.

• Verify the information with multiple sources

• Check for consistency in the data provided

• Ensure that all necessary information is present

• Compare the data with industry standards and regulations

• Ask for clarification or additional information if needed

P2P process involves risks such as fraud, errors, and non-compliance. Controls like segregation of duties, approvals, and audits can mitigate them.

• P2P process involves procurement, receiving, and payment

• Risks include fraud, errors, and non-compliance with policies and regulations

• Controls include segregation of duties, approvals, and audits

• Segregation of duties ensures that no single person has complete control over the process

• Approvals ensure that all transactions are authori...read more

COSO is a framework for internal control while COBIT is a framework for IT governance.

• COSO focuses on internal control over financial reporting while COBIT focuses on IT governance and management

• COSO has five components: control environment, risk assessment, control activities, information and communication, and monitoring activities

• COBIT has five focus areas: strategic alignment, value delivery, risk management, resource management, and performance measurement

• COSO is widely ...read more

Yes, this is my cup of tea.

• I have the necessary skills and experience for this role.

• I am passionate about the work and have a strong interest in it.

• I have successfully handled similar responsibilities in the past.

• I am confident in my ability to excel in this position.

Audit assertions are the claims made by management regarding the accuracy and completeness of financial statements.

• Audit assertions are used by auditors to assess the risk of material misstatement in financial statements.

• There are six types of audit assertions: existence, completeness, accuracy, valuation, rights and obligations, and presentation and disclosure.

• For example, existence assertion refers to whether the assets and liabilities actually exist, while completeness ass...read more

To audit bank reco, one should verify the accuracy of bank statements and compare them with the company's records.

• Verify the accuracy of bank statements

• Compare bank statements with the company's records

• Check for any discrepancies and investigate them

• Ensure all transactions are recorded accurately

• Verify that all bank accounts are reconciled on a regular basis

• Ensure that all outstanding checks and deposits are accounted for

• Verify that all bank fees and interest charges are accu...read more

Materiality concept in audit refers to the significance of an item or an error in financial statements.

• Materiality is a key concept in audit as it helps auditors determine the importance of an item or an error in financial statements.

• It is used to determine the scope of the audit and the level of detail required in the audit procedures.

• Materiality is based on both quantitative and qualitative factors, such as the size of the item, its nature, and the impact it may have on the...read more

Materiality is the concept of determining the significance of an item or event in relation to the financial statements as a whole.

• Materiality is a key concept in auditing and is used to determine the level of detail required in an audit.

• It involves assessing the significance of an item or event in relation to the financial statements as a whole.

• Materiality is a matter of professional judgment and is influenced by factors such as the size and nature of the item or event, the c...read more

Cash balance can be verified by reconciling the bank statement with the company's cash account.

• Compare the ending balance on the bank statement with the ending balance on the company's cash account

• Check for any outstanding checks or deposits in transit

• Verify that all transactions have been recorded accurately

• Perform regular audits to ensure accuracy

Stat audit is mandatory and conducted by external auditors while internal audit is voluntary and conducted by internal auditors.

• Stat audit is conducted to ensure compliance with legal and regulatory requirements.

• Internal audit is conducted to evaluate and improve the effectiveness of risk management, control, and governance processes.

• Stat audit is mandatory and conducted by external auditors while internal audit is voluntary and conducted by internal auditors.

• Stat audit is fo...read more

The 5-step model for revenue recognition involves identifying the contract, identifying performance obligations, determining the transaction price, allocating the transaction price, and recognizing revenue when performance obligations are met.

• Step 1: Identify the contract and its terms

• Step 2: Identify the performance obligations in the contract

• Step 3: Determine the transaction price

• Step 4: Allocate the transaction price to the performance obligations

• Step 5: Recognize revenue ...read more

Derivatives are financial instruments whose value is derived from an underlying asset. Auditing is the process of examining financial records to ensure accuracy and compliance. Internal control refers to the policies and procedures implemented by a company to safeguard assets and ensure accurate financial reporting. Materiality refers to the significance of a financial transaction or event.

• Derivatives are contracts between two parties that derive their value from an underlyin...read more

Inherent risk and control risk are two types of risks in service organization audit.

• Inherent risk is the risk of material misstatement in the absence of any internal controls.

• Control risk is the risk that a material misstatement will not be prevented or detected by the internal controls.

• Service organization audit involves assessing these risks to determine the level of assurance needed.

• Examples of inherent risks include complex transactions, significant estimates, and related...read more

A deferred tax asset is an accounting concept that represents a future tax benefit that a company can claim.

• It arises when a company has overpaid taxes or has carried forward tax losses from previous years.

• It can be used to offset future tax liabilities and reduce the company's tax bill.

• Deferred tax assets are recorded on the balance sheet as an asset.

• Examples include tax credits, tax loss carryforwards, and accelerated depreciation.

A relational database is a type of database that stores and organizes data in tables with relationships between them.

• Data is organized into tables with columns and rows

• Tables can have relationships with each other through keys

• SQL is used to manipulate and query data in relational databases

• Examples include MySQL, Oracle, and Microsoft SQL Server

SQL DML queries are used to manipulate data in a database.

• DML stands for Data Manipulation Language

• Used to insert, update, delete data in a database

• Examples: INSERT INTO, UPDATE, DELETE FROM

Cloud computing is the delivery of computing services over the internet.

• Cloud computing allows users to access data and applications from anywhere with an internet connection

• It eliminates the need for physical hardware and infrastructure

• Examples include Amazon Web Services, Microsoft Azure, and Google Cloud Platform