10+ Interview Questions and Answers

Test of control for audit of trade receivables involves evaluating the effectiveness of internal controls over the accuracy and completeness of trade receivables.

• Understand the client's internal control system related to trade receivables

• Identify key controls and perform walkthroughs to test their effectiveness

• Perform substantive procedures to test the accuracy and completeness of trade receivables

• Evaluate the results of the tests and communicate any issues or deficiencies to...read more

During the audit of the client, major findings were identified related to financial reporting and internal controls.

• Identified weaknesses in the client's internal control system

• Discovered errors in financial reporting

• Found instances of non-compliance with accounting standards

• Recommended improvements to the client's accounting processes

• Provided suggestions for strengthening the client's internal controls

The major clauses of tax audit report in Form 3CD

• The tax audit report in Form 3CD has 18 major clauses

• These clauses cover various aspects of the audit, such as accounting policies, depreciation, loans and advances, etc.

• Some of the important clauses include Clause 4 (accounting policies), Clause 13 (loans and advances), and Clause 17 (related party transactions)

Revenue testing involves applying cut off procedures to ensure accurate reporting of revenue.

• Revenue testing is a process of verifying the accuracy of revenue reported in financial statements.

• Cut off procedures are applied to ensure that revenue is recorded in the correct period.

• Examples of cut off procedures include reviewing sales invoices, shipping documents, and bank statements.

• Revenue testing also involves verifying the completeness and accuracy of revenue recognition po...read more

PwC is a leading professional services firm. A bearer cheque is a type of cheque that can be cashed by anyone who possesses it.

• PwC is known for its expertise in audit, tax, and advisory services

• It has a global presence with offices in over 150 countries

• Bearer cheques are risky as they can be easily stolen and cashed by anyone

• They are not commonly used anymore due to the rise of electronic banking

• An example of a bearer cheque is a traveler's cheque

The number of umbrellas sold in July in Ernakulam varies depending on factors like weather, tourist influx, and local demand.

• Sales may increase during monsoon season due to heavy rainfall

• Tourist influx may also impact umbrella sales as visitors may purchase them as souvenirs or for practical use

• Local demand for umbrellas may be higher in areas with frequent rain showers

• Promotions or discounts on umbrellas can also influence sales numbers

Ind AS 115 requires auditors to perform audit procedures on listed entities.

• Auditors must assess the entity's revenue recognition policies and procedures.

• They should also evaluate the effectiveness of internal controls related to revenue recognition.

• Auditors must obtain sufficient and appropriate audit evidence to support the entity's revenue recognition.

• They should also assess the impact of any changes in revenue recognition policies or procedures.

• Auditors must communicate a...read more

The OSI model is a conceptual framework that standardizes the functions of a telecommunication or computing system into seven layers.

• Layer 1 - Physical layer: Deals with physical connections and transmission of raw data. Example: Ethernet cables

• Layer 2 - Data link layer: Manages data transfer between devices on the same network. Example: MAC addresses

• Layer 3 - Network layer: Handles routing and forwarding of data packets. Example: IP addresses

• Layer 4 - Transport layer: Ensure...read more

Sales and purchase can be tested by analyzing transaction records, comparing with inventory levels, and conducting reconciliation.

• Reviewing sales invoices and purchase orders for accuracy

• Comparing sales data with inventory levels to ensure consistency

• Conducting regular reconciliation of sales and purchase records

• Analyzing trends in sales and purchase data to identify any anomalies or discrepancies

Taxation is the process of imposing a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state.

• Taxation is the means by which governments finance their spending by imposing charges on citizens and corporate entities.

• It involves the collection of taxes from individuals and businesses based on their income, profits, or property.

• Taxation can take various forms such as income tax, sales tax, property tax, and corporate tax.

• The revenue gene...read more

The count of rows after inner, left, and right join can vary based on the data and join conditions.

• The count after an inner join will be the same as the smallest table being joined.

• The count after a left join will be the same as the left table being joined.

• The count after a right join will be the same as the right table being joined.

Cash expenses can be tested by reconciling physical cash on hand with recorded expenses in the accounting system.

• Reconcile physical cash on hand with cash expenses recorded in the accounting system

• Verify receipts and invoices for cash expenses

• Check for any discrepancies or missing documentation

• Perform surprise cash counts to ensure accuracy

Bank balances can be tested by reconciling the bank statement with the company's records.

• Compare the ending balance on the bank statement with the ending balance in the company's general ledger.

• Check for any outstanding checks or deposits that have not cleared the bank yet.

• Verify any bank fees or interest charges that may have been deducted from the account.

• Ensure that all transactions are accurately recorded in both the bank statement and the company's records.

• Perform regula...read more

Audit process involves systematic examination of financial records, statements, and transactions to ensure accuracy and compliance.

• Planning and preparation

• Fieldwork and data collection

• Analysis and evaluation of findings

• Reporting and communication of results

• Follow-up and monitoring of corrective actions

• Examples: financial audit, operational audit, compliance audit

Cut off procedures are steps taken to stop a process or transaction at a specific point in time.

• Cut off procedures are used in accounting to ensure that transactions are recorded in the correct accounting period.

• Examples include cut off procedures for inventory counts at the end of a fiscal year.

• Cut off procedures may also be used in manufacturing to stop production at a certain point in order to make changes or adjustments.

Materiality refers to the significance or importance of an item, event, or information in relation to a specific context or decision.

• Materiality is a concept used in auditing to determine the impact of errors or omissions on financial statements.

• It helps in deciding what information should be disclosed to stakeholders based on its relevance and significance.

• Materiality is subjective and can vary depending on the circumstances and the users of the information.

• For example, a sm...read more

Implement a code to reverse an array of strings.

• Create a function that takes an array of strings as input

• Use a loop to iterate through the array and swap the elements from start to end

• Return the reversed array