BCI Technologies Interview Questions and Answers

To audit the PPE of a company, one must perform physical verification, review maintenance records, assess depreciation, and ensure compliance with accounting standards.

• Perform physical verification of all PPE items to ensure they exist and are in good condition

• Review maintenance records to confirm regular upkeep and repairs

• Assess depreciation of PPE items to ensure accurate valuation on the balance sheet

• Ensure compliance with accounting standards such as IFRS or GAAP

Types of opinions include unqualified, qualified, adverse, and disclaimer opinions.

• Unqualified opinion: when financial statements are fairly presented.

• Qualified opinion: when there are limitations to the audit.

• Adverse opinion: when financial statements are not fairly presented.

• Disclaimer opinion: when auditors cannot form an opinion due to lack of information.

Materiality refers to the significance or importance of an item, transaction, or event in financial statements.

• Materiality is a concept used in auditing to determine the impact of errors or omissions on financial statements.

• It helps auditors decide what information is important enough to be disclosed to users of the financial statements.

• Factors that influence materiality include the size of the item, its nature, and the circumstances surrounding it.

• For example, a small error ...read more

Standards on auditing are guidelines and procedures followed by auditors to ensure the accuracy and reliability of financial statements.

• Standards on auditing provide a framework for auditors to plan and perform their audits.

• They help ensure that audits are conducted with integrity, objectivity, and independence.

• Examples of auditing standards include ISA (International Standards on Auditing) and PCAOB (Public Company Accounting Oversight Board) standards.

• Auditors must adhere t...read more

Ind AS 115 is a revenue recognition standard that specifies how and when revenue should be recognized in financial statements.

• Ind AS 115 replaces the existing revenue recognition standards and provides a comprehensive framework for recognizing revenue from contracts with customers.

• It focuses on identifying performance obligations in a contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when the ...read more