Gofin Technologies Interview Questions and Answers

Types of sampling include random, systematic, stratified, and cluster. Test of details involves examining individual transactions while substantive analytical procedures involve analyzing trends and ratios.

• Random sampling involves selecting items randomly from the population.

• Systematic sampling involves selecting items at regular intervals.

• Stratified sampling involves dividing the population into subgroups and selecting items from each subgroup.

• Cluster sampling involves selec...read more

Debt issuance cost/loan processing fees/transaction cost are capitalized and amortized over the life of the loan.

• Debt issuance cost/loan processing fees/transaction cost are costs incurred in obtaining a loan.

• These costs are capitalized and amortized over the life of the loan.

• The amortization of these costs reduces the effective interest rate of the loan.

• The accounting treatment for these costs is in accordance with the guidance in ASC 835-30.

• Examples of these costs include l...read more

Assertions for Accounts Payable and testing unrecorded liabilities.

• Assertions for Accounts Payable include completeness, accuracy, existence, valuation, and rights and obligations.

• To test for unrecorded liabilities, perform a search for unrecorded liabilities by reviewing vendor invoices, purchase orders, and receiving reports.

• Another way to test for unrecorded liabilities is to review subsequent cash disbursements after the balance sheet date.

• Confirmations with vendors can a...read more

Deferred revenue and unearned revenue are the same thing. They refer to revenue received in advance of being earned.

• Deferred revenue and unearned revenue are both liabilities on a company's balance sheet.

• They represent revenue that has been received but not yet earned.

• An example of deferred revenue is a subscription service that is paid for in advance.

• An example of unearned revenue is a deposit received for a future service or product.

• Deferred revenue is recognized as revenue...read more

ASC 606 is a revenue recognition standard that outlines principles for recognizing revenue from customer contracts.

• Revenue is recognized when a customer obtains control of a good or service

• Revenue should be recognized over time if the customer receives benefits as the work progresses

• Testing revenue involves verifying that revenue is recognized in accordance with ASC 606

• This can include reviewing contracts, invoices, and other documentation to ensure revenue is recognized appr...read more

Property, plant and equipment can be tested through physical inspection, documentation review and analytical procedures.

• Perform a physical inspection of the assets to ensure they exist and are in good condition

• Review documentation such as purchase invoices, maintenance records and depreciation schedules

• Perform analytical procedures such as comparing the current year's depreciation expense to prior years

• Consider testing for impairment if there are indicators of potential impai...read more