10+ Sainik Mining and Allied Services 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

Different assertions in audit refer to various claims or statements made during the auditing process to evaluate the accuracy and reliability of financial information.

• Existence assertion: Ensuring that assets and liabilities actually exist at a given date.

• Completeness assertion: Verifying that all transactions and accounts are recorded in the financial statements.

• Valuation assertion: Confirming that assets and liabilities are recorded at their appropriate values.

• Rights and ob...read more

To close treasury, reconcile all transactions and balances, ensure all necessary approvals are obtained, and update records accordingly. To check bank area, review bank statements and compare to internal records.

• Reconcile all transactions and balances

• Ensure all necessary approvals are obtained

• Update records accordingly

• Review bank statements

• Compare to internal records

TDS rate for contractors varies based on the type of payment and nature of work.

• TDS rate for contractors can range from 1% to 10% depending on the type of payment and nature of work.

• For example, TDS rate for payment to contractors for work like advertising, catering, transport, etc. is 1%.

• However, TDS rate for payment to contractors for professional or technical services is 10%.

• Contractors can also apply for lower TDS deduction by providing Form 13 to the deductor.

Defaulting in depositing undisputed statutory dues can lead to legal consequences and financial penalties.

• Defaulting in depositing undisputed statutory dues can result in penalties, interest, and legal action by the authorities.

• It is important for businesses to ensure timely deposit of statutory dues such as TDS, GST, PF, etc.

• Failure to deposit statutory dues can also impact the company's reputation and creditworthiness.

• Examples of statutory dues include TDS deducted from emp...read more

I know various functions on Excel such as SUM, AVERAGE, COUNT, IF, VLOOKUP, and more.

• Basic arithmetic functions like SUM, AVERAGE, COUNT

• Logical functions like IF, AND, OR

• Lookup functions like VLOOKUP, HLOOKUP

• Text functions like CONCATENATE, LEFT, RIGHT

• Date and time functions like TODAY, NOW, MONTH

• Statistical functions like MAX, MIN, MEDIAN

• Financial functions like PV, FV, NPV

TDS deposit date is the due date by which tax deducted at source must be deposited with the government.

• TDS deposit date is usually the 7th of the following month for non-government deductors.

• For government deductors, TDS deposit date is usually the 7th of the following month except for March, where it is the 30th.

• Late deposit of TDS may attract interest and penalties.

Internal audit is a process where an organization's operations, financials, and compliance are reviewed by an internal team.

• Internal audit helps ensure that the organization's operations are efficient and effective.

• It also helps in identifying risks and ensuring compliance with laws and regulations.

• Internal auditors provide recommendations for improvement based on their findings.

• Examples of internal audit activities include reviewing financial statements, assessing internal c...read more