S K Lulla And Co Senior Audit Assistant Interview Questions and Answers

To plan an audit of a mutual fund, one must consider the fund's objectives, risks, and compliance with regulations.

• Review the fund's objectives and investment strategy

• Assess the fund's risk profile and identify potential areas of risk

• Evaluate the fund's compliance with regulatory requirements

• Review the fund's financial statements and performance data

• Assess the fund's internal controls and governance structure

• Consider a...read more

To select samples from 300 ledger accounts, I would use statistical sampling techniques and stratification.

• I would stratify the accounts based on their size, activity, and risk level.

• I would then use statistical sampling techniques such as random sampling or systematic sampling to select a representative sample from each stratum.

• For the account with 1000 entries worth one million dollars, I would use monetary unit samp...read more

Two accounting standards are IFRS and GAAP.

• IFRS (International Financial Reporting Standards) is a set of accounting standards developed by the International Accounting Standards Board (IASB).

• GAAP (Generally Accepted Accounting Principles) is a set of accounting standards developed by the Financial Accounting Standards Board (FASB) in the United States.

• IFRS is used in over 120 countries, while GAAP is used primarily in...read more

Materiality is the concept of determining the significance of an item or event in financial statements.

• Materiality is a subjective concept and varies based on the size and nature of the organization.

• It is used to determine what information should be disclosed in financial statements.

• Materiality is determined by considering the size, nature, and frequency of an item or event.

• For example, a $10,000 error in a company wit...read more