10+ Celsius Healthcare Interview Questions and Answers

Ind AS 116 is a new accounting standard that replaces the old lease accounting standard.

• Ind AS 116 is effective from April 1, 2019.

• Its objective is to provide a single lessee accounting model that requires lessees to recognize assets and liabilities for all leases with a term of more than 12 months.

• Operating leases are treated as off-balance sheet financing, while financial leases are treated as on-balance sheet financing.

• Under operating leases, the lessee only recognizes lea...read more

Audit of Balance Sheet and Profit & Loss A/c involves verifying the accuracy of financial statements.

• Verify the accuracy of account balances and transactions

• Check for proper classification and presentation of financial data

• Ensure compliance with accounting standards and regulations

• Perform analytical procedures to identify unusual transactions or trends

• Confirm balances with third-party sources

• Review supporting documentation for transactions

• Assess the adequacy of disclosures in...read more

To verify a particular ledger, one can perform various procedures such as physical verification, reconciliation, and analytical review.

• For Fixed Assets ledger, perform a physical verification of assets and reconcile with the register.

• For Creditors ledger, reconcile the balance with the supplier statements and review the aging analysis.

• For Inventory ledger, perform a physical count and reconcile with the inventory register.

• Perform analytical review of the ledger to identify an...read more

Internal Financial Control over Financial Reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting.

• It involves the establishment and maintenance of policies and procedures

• It ensures that financial information is accurate and complete

• It helps in preventing and detecting fraud

• It involves monitoring and reviewing financial reporting processes

• Examples include segregation of duties, regular audits, and proper documentation

Deferred tax is a liability or asset that arises due to temporary differences between accounting and tax rules.

• Deferred tax liability arises when taxable income is higher than accounting income, and deferred tax asset arises when accounting income is higher than taxable income.

• Examples of temporary differences include depreciation, inventory valuation, and revenue recognition.

• Deferred tax is calculated using the tax rate that is expected to apply when the temporary difference...read more

Audit of trade receivables involves verifying the existence, accuracy, and valuation of outstanding customer balances.

• Obtain a list of all trade receivables and reconcile it with the general ledger.

• Verify the existence of the receivables by sending confirmation requests to customers.

• Assess the accuracy of the balances by reviewing supporting documentation such as invoices and sales contracts.

• Evaluate the valuation of the receivables by assessing the creditworthiness of custom...read more

Audit assertion is a claim made by the management regarding the accuracy of financial statements.

• Audit assertions are used to evaluate the completeness, accuracy, and validity of financial statements.

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

• For example, existence assertion ensures that all assets and liabilities in the financial statements actually exist and are owned by the ...read more

Types of audit opinion include unqualified, qualified, adverse, and disclaimer. Audit risk is the risk of material misstatement.

• Unqualified opinion means the financial statements are fairly presented.

• Qualified opinion means there are some limitations or exceptions in the financial statements.

• Adverse opinion means the financial statements are materially misstated.

• Disclaimer opinion means the auditor is unable to express an opinion.

• Audit risk is the risk that the auditor may is...read more

CARO 2020 has been amended recently. Can you tell me about the amendments?

• CARO 2020 has been amended to include reporting on the utilization of Corporate Social Responsibility funds.

• The auditor is now required to report on the adequacy and effectiveness of internal financial controls.

• Reporting on the details of proceedings initiated or pending against the company for holding benami property has been added.

• The auditor is now required to report on the maintenance of cost record...read more

The 3 parts of cashflow are operating activities, investing activities, and financing activities.

• Operating activities involve the day-to-day business operations, such as sales and expenses.

• Investing activities include buying and selling of assets, like equipment or investments.

• Financing activities involve obtaining funds from creditors or investors, and repaying them, such as issuing stock or taking out loans.

Auditing debtors involves verifying the accuracy of accounts receivable balances and ensuring proper valuation and classification.

• Confirming the existence of debtors by sending confirmation letters directly to them

• Reviewing sales invoices, delivery notes, and customer statements to reconcile with the accounts receivable ledger

• Assessing the allowance for doubtful debts to ensure it is adequate based on historical collection patterns

• Testing the accuracy of debtor balances by pe...read more

Auditing treasury involves examining financial records, controls, and processes related to cash management and investments.

• Reviewing bank statements and reconciliations to ensure accuracy

• Testing the effectiveness of internal controls over cash disbursements and receipts

• Evaluating the organization's investment policies and procedures

• Analyzing cash flow projections and liquidity management

• Confirming balances with financial institutions and counterparties

Audit is a systematic examination of an organization's financial records, transactions, and processes to ensure accuracy and compliance.

• Audit involves reviewing financial statements, transactions, and internal controls.

• The goal of an audit is to provide assurance that financial information is accurate and reliable.

• Auditors may test transactions, interview employees, and inspect documents to gather evidence.

• Types of audits include financial audits, operational audits, and comp...read more