Willis Towers Watson Senior Associate Interview Questions and Answers

Key audit matters are significant areas of the audit that require the most attention and have the highest risk of material misstatement.

• Revenue recognition

• Impairment of assets

• Valuation of inventory

• Going concern

• Related party transactions

• Taxation

• Litigation and claims

• Acquisitions and disposals

• Pensions and other post-employment benefits

• Financial instruments

• Business continuity and disaster recovery

• IT systems and controls

Non deduction of TDS can lead to penalties and legal consequences.

• Non deduction of TDS can result in penalties and interest charges.

• The taxpayer may also face legal consequences and prosecution.

• The deductee may face difficulties in claiming credit for the tax deducted at source.

• Non deduction of TDS can also lead to increased scrutiny from tax authorities.

• For example, if an employer fails to deduct TDS on salary payment...read more

Materiality is the concept of determining the significance or importance of information in financial reporting.

• Materiality refers to the threshold at which information becomes relevant to users of financial statements.

• It is a subjective judgment based on the nature and size of the item or error being evaluated.

• Materiality is determined by considering both quantitative and qualitative factors.

• Quantitative factors includ...read more

IND AS on Revenue recognition and Lease income

• IND AS 115 governs revenue recognition

• Lease income is governed by IND AS 116

• Revenue recognition is based on the transfer of control

• Lease income is recognized over the lease term

• Both standards require significant judgement and estimation

Approximately 1 million Anu Malik music CDs were sold in 1995.

• Anu Malik was a popular music composer in the 90s

• CDs were the primary mode of music distribution in 1995

• Assuming Anu Malik's popularity, 1 million CDs sold seems reasonable

Increase Starbucks sales in India case

• Conduct market research to understand local preferences and culture

• Develop a menu that caters to Indian tastes, such as adding more tea-based drinks

• Partner with local businesses and influencers to increase brand awareness

• Offer promotions and discounts to attract new customers

• Expand store locations to reach more customers in different regions

Audit assertions are the claims made by management regarding the accuracy and completeness of financial statements.

• Audit assertions are used by auditors to assess the risk of material misstatement in financial statements.

• There are six types of audit assertions: existence, completeness, accuracy, valuation, rights and obligations, and presentation and disclosure.

• For example, existence assertion refers to whether the ass...read more