SRBC & Co Audit Executive Interview Questions and Answers

Q1. Golden rule of accounting
Ans. 
The golden rule of accounting states that debit what comes in and credit what goes out.
• Debit what comes in and credit what goes out

• Helps maintain the balance in accounting records

• Used to ensure accuracy in financial transactions
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Q2. Explain requirements of LFAR
Ans. 
LFAR stands for Long Form Audit Report, which is a detailed report prepared by auditors to provide a comprehensive analysis of a company's financial statements and internal controls.
• LFAR is a regulatory requirement for banks and financial institutions in India, mandated by the Reserve Bank of India (RBI).

• It includes detailed information on the financial position of the company, compliance with regulatory requirements, ...read more
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Q1. Standard discussion to judge skills and communication
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Q1. Basics of itgc and BCM
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Q2. Past experience
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Q1. Detailed Internal audit
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Q1. Salary discussion
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Q1. What are the processes you had covered in your articleship?
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Q2. What are the key risk areas and give an explain ?
Ans. 
Key risk areas for an internal auditor include fraud, compliance, operational, financial, and cybersecurity risks.
• Fraud risk: Misappropriation of assets, financial statement fraud, corruption.

• Compliance risk: Failure to comply with laws and regulations, industry standards.

• Operational risk: Inefficiencies, errors, lack of internal controls.

• Financial risk: Mismanagement of funds, inaccurate financial reporting.

• Cybersecur...read more
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Q3. What are the assertions, explain it
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Assertions are the representations by management in financial statements regarding the accuracy and completeness of information.
• Assertions include existence, completeness, rights and obligations, valuation or allocation, and presentation and disclosure.

• Existence - assets and liabilities exist at a given date

• Completeness - all transactions and accounts that should be included are included

• Rights and obligations - entity ...read more
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Q1. Which clients you worked on, what was the findings on the assignment?
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Q2. What clients expect from consultancy firms in regards to internal audit prospective?
Ans. 
Clients expect consultancy firms to provide expertise, objectivity, efficiency, and value in internal audit services.
• Expertise in industry best practices and regulations

• Objectivity in assessing risks and controls

• Efficiency in conducting audits and delivering timely reports

• Value in providing actionable recommendations for improvement

• Examples: detailed audit plans, thorough risk assessments, clear communication of findin
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Q3. What is test of effectiveness and design ?
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Test of effectiveness and design is a process used to evaluate the efficiency and adequacy of controls in place.
• Test of effectiveness assesses whether controls are operating as intended.

• Test of design evaluates the adequacy of controls to address risks.

• Examples include testing the effectiveness of access controls by attempting unauthorized access, and testing the design of segregation of duties controls by reviewing jo...read more
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Q4. What can affect TOD and TOE of controls?
Ans. 
Various factors such as changes in regulations, technology, business processes, and personnel can affect the design and operating effectiveness of controls.
• Changes in regulations can impact the design and operating effectiveness of controls by requiring updates to comply with new laws or standards.

• Advancements in technology may render existing controls obsolete or ineffective, necessitating enhancements or replacements...read more
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Q1. What do you about compliance
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Compliance refers to following laws, regulations, policies, and standards to ensure ethical and legal business practices.
• Compliance involves adhering to laws, regulations, and industry standards relevant to the organization's operations.

• It includes implementing policies and procedures to prevent violations and ensure ethical conduct.

• Regular audits and monitoring are conducted to assess compliance and identify areas for...read more
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Q2. Types of complaince
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Types of compliance refer to different categories of rules and regulations that organizations must adhere to.
• Regulatory compliance - following laws and regulations set by government authorities

• Industry compliance - adhering to specific standards and guidelines within a particular industry

• Internal compliance - following company policies and procedures

• Data compliance - ensuring the protection and privacy of data

• Financial...read more
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Q1. Related to Audit and Banking
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Lots of aptitude question with 10 difficulty

Q1. What us your expected salary
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Q2. Target after 5 years
Ans. 
To become a certified internal auditor and take on a leadership role within the organization.
• Obtain certification as a Certified Internal Auditor (CIA)

• Develop strong leadership and communication skills

• Take on more challenging audit assignments

• Mentor junior auditors

• Contribute to the strategic direction of the internal audit function
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Q1. What do you mean by deferred revenue?
Ans. 
Deferred revenue refers to income received by a company in advance of earning it, resulting in a liability on the balance sheet.
• Deferred revenue is also known as unearned revenue.

• It is recorded as a liability on the balance sheet until the revenue is recognized.

• Common examples include magazine subscriptions, annual maintenance contracts, and advance payments for services.

• Once the revenue is earned, it is recognized on ...read more
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Q2. Hiw would you reconcile bank balances at the end of the period?
Ans. 
Reconciling bank balances involves comparing the bank statement with the company's records to identify and resolve any discrepancies.
• Obtain the bank statement and compare it with the company's records of transactions.

• Identify any discrepancies such as missing deposits or withdrawals, bank errors, or outstanding checks.

• Adjust the company's records to match the bank statement by recording any necessary corrections.

• Ensure...read more
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Q3. What are the three major activities incvolved in cash flow statement? And in which category would you include purchase of fixed assets and repayment of loans?
Ans. 
The three major activities in cash flow statement are operating activities, investing activities, and financing activities. Purchase of fixed assets would fall under investing activities, while repayment of loans would fall under financing activities.
• Operating activities involve cash flows from day-to-day business operations, such as sales and expenses.

• Investing activities include cash flows related to the purchase and...read more
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Q4. What are the 5 steps of Revenue recognition?
Ans. 
The 5 steps of Revenue recognition are identification of the contract, identification of performance obligations, determination of transaction price, allocation of transaction price, and recognition of revenue as performance obligations are satisfied.
• Identification of the contract: Determine the existence of a contract with a customer.

• Identification of performance obligations: Identify the separate performance obligati...read more
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Q5. Why do you want to join Deloitte?
Ans. 
I want to join Deloitte because of its reputation for providing excellent training and career development opportunities.
• Deloitte is known for its high-quality training programs which will help me develop my skills and knowledge in auditing.

• I am impressed by Deloitte's commitment to employee growth and advancement, which aligns with my career goals.

• I believe that working at Deloitte will provide me with the opportunity ...read more
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Q6. How would you audit fixed assets?
Ans. 
Fixed assets are audited by verifying physical existence, ownership, valuation, and depreciation methods.
• Verify physical existence by conducting physical inventory counts.

• Confirm ownership by reviewing title deeds and purchase agreements.

• Ensure accurate valuation by comparing book value to market value.

• Review depreciation methods and calculations for accuracy.

• Check for impairment indicators and assess if any assets nee...read more
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