10+ Ritz-Carlton Interview Questions and Answers

Contingent liabilities are recognized when it is probable that a liability will occur and the amount can be reasonably estimated.

• Contingent liabilities are recognized when it is probable that a liability will occur and the amount can be reasonably estimated.

• Probable cases are those where the occurrence of the liability is likely based on available evidence.

• Possible cases are those where the occurrence of the liability is more than remote but less than probable.

• Remote cases ar...read more

SA 402 is a standard on auditing of accounting estimates and related disclosures. It prescribes an auditor's report.

• SA 402 provides guidance on auditing accounting estimates and related disclosures.

• It requires the auditor to evaluate the reasonableness of accounting estimates made by management.

• The standard also emphasizes the importance of disclosures related to accounting estimates in financial statements.

• SA 402 prescribes the format and content of the auditor's report when...read more

Cutoff procedure is a process of determining a specific point in time for ending a particular activity or transaction.

• Cutoff procedure is performed to ensure accurate financial reporting by capturing all relevant transactions within a specific period.

• It involves setting a specific date and time to stop recording transactions for a particular period, such as month-end or year-end.

• The procedure includes reviewing and adjusting entries to ensure all transactions are properly acc...read more

CARO 2020 introduced significant changes compared to CARO 2016.

• Expanded scope of reporting requirements

• Introduction of new reporting formats

• Enhanced focus on fraud detection and reporting

• Increased responsibilities for auditors

• Additional disclosures related to related party transactions

Cash and bank are generally considered low risk items due to their stability and liquidity.

• Cash and bank deposits are easily accessible and can be quickly converted into cash if needed.

• Banks are typically insured by government agencies, providing an additional layer of security for deposits.

• While there is a risk of theft or fraud, proper security measures can mitigate these risks.

• Investing in high-risk assets like stocks or cryptocurrencies carries more risk compared to holdi...read more

Ind AS 116 is a new lease accounting standard that replaces the existing Ind AS 17.

• Ind AS 116 changes the accounting treatment for leases, requiring lessees to recognize most leases on their balance sheets.

• It eliminates the distinction between operating and finance leases for lessees.

• Lessees must now recognize a right-of-use asset and a lease liability for almost all leases.

• The standard aims to provide a more faithful representation of an entity's leasing activities.

• Ind AS 11...read more

Revenue recognition under Ind AS involves following specific criteria and guidelines.

• Revenue should be recognized when it is probable that economic benefits will flow to the entity and the revenue can be reliably measured.

• Revenue should be recognized at the fair value of the consideration received or receivable.

• Revenue should be recognized when specific criteria are met, such as transfer of risks and rewards of ownership, no continuing managerial involvement, etc.

• Revenue from...read more

Inventory valuation methods include FIFO, LIFO, weighted average, and specific identification.

• FIFO (First In, First Out) - assumes that the oldest inventory items are sold first

• LIFO (Last In, First Out) - assumes that the newest inventory items are sold first

• Weighted Average - calculates the average cost of inventory items based on their weights

• Specific Identification - assigns the actual cost of each inventory item to determine the cost of goods sold

Fixed asset audits involve physical verification, reconciliation with records, and assessment of depreciation.

• Perform physical verification of fixed assets to ensure they exist and are in the stated condition.

• Reconcile fixed asset records with financial statements to identify any discrepancies.

• Assess the depreciation of fixed assets to ensure it is accurately recorded.

• Verify the location and usage of fixed assets to confirm they are being utilized effectively.

• Document the aud...read more

ROU Asset can be calculated by determining the present value of lease payments and adding initial direct costs.

• Calculate the present value of lease payments using the discount rate

• Add any initial direct costs incurred in obtaining the lease

• Subtract any lease incentives received from the lessor

• Consider any impairment charges or adjustments needed for the ROU Asset

• Example: Present value of lease payments = $100,000, Initial direct costs = $5,000, Lease incentives = $2,000