Advanced Associate Interview Questions and Answers

Sustainability refers to the practice of meeting present needs without compromising the ability of future generations to meet their own needs.

• Sustainability involves balancing economic, social, and environmental factors.

• It aims to minimize negative impacts on the environment and society.

• Sustainability standards provide guidelines for organizations to follow in order to achieve sustainable practices.

• Examples of sustainability standards include ISO 14001 for environmental manag...read more

Segregating cash flow statement involves categorizing cash inflows and outflows into operating, investing, and financing activities.

• Operating activities include cash received from sales, payments to suppliers, and salaries paid to employees.

• Investing activities involve cash flows related to the purchase or sale of assets like property, equipment, or investments.

• Financing activities include cash received from issuing stock or borrowing money, as well as cash used to pay divide...read more

Bank Reconciliation Statement is a document that compares the bank's records with the company's records to ensure they match.

• It is used to identify any discrepancies between the two sets of records.

• It includes items such as deposits in transit, outstanding checks, bank errors, and service charges.

• The goal is to ensure the accuracy of the company's financial records and the bank's records.

• Once discrepancies are identified, adjustments are made to reconcile the two sets of reco...read more

Provision and reserve are accounting terms used to set aside funds for future expenses or losses.

• Provision is an amount set aside to cover a known liability or potential loss, based on estimates.

• Reserve is an amount set aside to cover unknown future expenses or losses.

• Provisions are usually based on specific events or conditions, while reserves are more general.

• Examples include provision for bad debts, provision for warranty expenses, and reserve for contingencies.

Materiality in auditing is determined by considering the size, nature, and context of misstatements.

• Size of the misstatement in relation to total assets, revenues, or income

• Nature of the misstatement and its impact on financial statements

• Context of the misstatement in terms of regulatory requirements or user needs