100+ Article Assistant Interview Questions and Answers

Emphasis on matter paragraph highlights significant matters in financial statements while key audit matter focuses on significant audit matters.

• Emphasis on matter paragraph is included in the auditor's report while key audit matter is a separate section.

• Emphasis on matter paragraph highlights significant matters in the financial statements such as going concern, related party transactions, and significant accounting policies.

• Key audit matter focuses on significant audit matte...read more

Grandfather concept in capital gain refers to the original cost of an asset inherited from a deceased relative.

• Grandfather concept is used to determine the cost of an asset inherited from a deceased relative for the purpose of calculating capital gains tax.

• The cost of the asset is considered to be the original cost paid by the deceased relative, rather than the current market value.

• This can result in significant tax savings for the inheritor if the asset has appreciated in va...read more

GST can lead to cheaper goods through the elimination of cascading taxes and increased efficiency in the supply chain.

• GST eliminates the cascading effect of taxes, where taxes are levied on top of taxes, resulting in higher prices.

• Under GST, input tax credits can be claimed, allowing businesses to reduce their tax liability and pass on the benefits to consumers.

• GST simplifies the tax structure and reduces compliance costs, which can lead to cost savings for businesses and ult...read more

Current maturities of long term obligations are typically placed under current liabilities on a balance sheet.

• Current maturities of long term obligations represent the portion of long term debt that is due within the next year.

• They are classified as current liabilities because they are expected to be paid off within a year.

• Examples include the current portion of a long term loan or mortgage.

• They are important for assessing a company's short term financial obligations.

Reverse Charge Mechanism is a system where the recipient of goods/services is liable to pay the tax instead of the supplier.

• Under Reverse Charge Mechanism, the recipient of goods/services is responsible for paying the tax to the government instead of the supplier.

• It is applicable when a registered dealer purchases goods or services from an unregistered dealer.

• The recipient needs to self-invoice the transaction and pay the tax directly to the government.

• Input tax credit can be...read more

Internal control refers to the overall system of controls implemented by an organization to ensure the achievement of objectives.

• Internal control encompasses all the policies, procedures, and practices implemented by an organization to safeguard assets, ensure accuracy and reliability of financial records, promote operational efficiency, and ensure compliance with laws and regulations.

• Internal financial control specifically focuses on the controls related to financial reporti...read more

INDAS 115 and cutoff assertion are considered together by ensuring revenue recognition is in compliance with INDAS 115 and cutoffs are accurately recorded.

• Ensure revenue recognition is in compliance with INDAS 115 guidelines

• Verify that cutoffs for revenue and expenses are accurately recorded

• Review any potential impact of INDAS 115 on cutoff assertion

• Consider the timing of revenue recognition and cutoffs in financial statements

Excel has various types of functions to perform calculations and manipulate data.

• Mathematical functions like SUM, AVERAGE, MAX, MIN, etc.

• Text functions like CONCATENATE, LEFT, RIGHT, etc.

• Logical functions like IF, AND, OR, etc.

• Date and time functions like TODAY, NOW, YEAR, MONTH, etc.

• Lookup and reference functions like VLOOKUP, HLOOKUP, INDEX, MATCH, etc.

• Financial functions like PV, FV, NPV, etc.

• Statistical functions like COUNT, COUNTIF, STDEV, etc.

Accounting standards are guidelines for financial reporting that ensure consistency and transparency in financial statements.

• Accounting Standard 1 (AS 1) - Disclosure of Accounting Policies: Requires companies to disclose their accounting policies in financial statements.

• Accounting Standard 2 (AS 2) - Valuation of Inventories: Provides guidelines for the valuation of inventories, such as cost formulas and net realizable value.

• Accounting Standard 3 (AS 3) - Cash Flow Statement...read more

Yes, I have a vehicle for daily commute to the office and back home.

• Yes, I have a car that I use for daily transportation.

• I ensure regular maintenance of my vehicle to avoid any breakdowns.

• Having a vehicle allows me to be punctual and reliable for work.

• In case of emergencies or late hours at work, having a vehicle is convenient for safe travel.

Section 194Q of income tax act requires deduction of tax at source on purchase of goods above Rs. 50 lakhs.

• Introduced in Budget 2021, applicable from 1st July 2021

• Applies to buyers whose turnover exceeds Rs. 10 crores

• Tax to be deducted at 0.1% on purchase value exceeding Rs. 50 lakhs

• Seller can claim credit for TDS deducted under Section 194Q

Capital gains are calculated by subtracting the cost of acquisition from the sale price of an asset.

• Determine the sale price of the asset

• Determine the cost of acquisition of the asset

• Subtract the cost of acquisition from the sale price to get the capital gain

• Apply any applicable exemptions or deductions to arrive at the taxable capital gain

Internal audit provides a more comprehensive view of the organization's operations and helps identify areas for improvement.

• Internal audit focuses on evaluating and improving the effectiveness of an organization's risk management, control, and governance processes.

• Statutory audit is a legal requirement and focuses on ensuring compliance with applicable laws and regulations.

• Internal audit provides valuable insights into the organization's operations and helps identify areas fo...read more

Accounting involves recording, classifying, and summarizing financial transactions, while auditing involves examining and verifying financial records.

• Accounting focuses on the preparation and presentation of financial statements.

• Auditing ensures the accuracy and reliability of financial statements.

• Accounting is an ongoing process, while auditing is conducted periodically.

• Accounting is performed by the company's internal staff, while auditing is usually done by external profes...read more

Accounting involves analyzing, interpreting, and summarizing financial data, while bookkeeping focuses on recording financial transactions.

• Accounting involves the process of analyzing, interpreting, and summarizing financial data to provide insights and make informed decisions.

• Bookkeeping, on the other hand, is the process of recording financial transactions in a systematic and organized manner.

• Accounting requires a higher level of knowledge and expertise compared to bookkeep...read more

The government has introduced various updates in income tax laws in the recent years.

• The Finance Act, 2021 has introduced a new provision for tax deduction at source (TDS) on purchase of goods at 0.1% rate.

• The deadline for filing income tax returns for the financial year 2020-21 has been extended to September 30, 2021.

• The government has introduced a new tax regime with lower tax rates for individuals who are willing to forego certain exemptions and deductions.

• The Finance Act,...read more

Accounting entries are recorded to reflect financial transactions accurately.

• Identify the accounts affected by the transaction

• Determine if it is a debit or credit entry

• Follow the double-entry accounting system

• Ensure the accounting equation (Assets = Liabilities + Equity) remains balanced

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions.

• Accounting involves keeping track of financial transactions such as sales, purchases, and payments.

• It includes classifying these transactions into different categories such as revenue, expenses, assets, and liabilities.

• The information gathered through accounting is used to prepare financial statements such as balance sh...read more

I chose Audit/Taxation because it aligns with my interest in financial analysis and compliance.

• I have a strong interest in financial analysis and compliance.

• I enjoy working with numbers and analyzing financial data.

• Audit/Taxation offers a diverse range of clients and industries to work with.

• I believe it provides a solid foundation for a career in finance or accounting.

• Examples: I have always been fascinated by the intricacies of tax laws and enjoy helping individuals and busi...read more

Statutory audit is mandatory and conducted by external auditors while internal audit is voluntary and conducted by internal auditors.

• Statutory audit is conducted to ensure compliance with legal and regulatory requirements while internal audit is conducted to evaluate and improve the effectiveness of internal controls.

• Statutory audit is mandatory for all companies while internal audit is voluntary and can be conducted by the company itself or outsourced to a third party.

• Statut...read more

Provision is a liability that is uncertain in timing or amount, while reserve is a portion of profits set aside for a specific purpose.

• Provision is an estimated expense that a company sets aside in its accounts to cover a potential future liability.

• Reserve is a portion of profits that a company sets aside for a specific purpose, such as to fund future expansion or to pay dividends.

• Provision is recognized as an expense on the income statement, while reserve is shown as a separ...read more

Balance sheet assertions are representations made by management regarding the accuracy and completeness of items on the balance sheet.

• Existence - Assets and liabilities actually exist at a given date.

• Rights and obligations - Assets are owned by the entity and liabilities are obligations of the entity.

• Completeness - All assets, liabilities, and equity interests that should be recorded are included.

• Valuation and allocation - Assets, liabilities, and equity interests are include...read more

Audit is a systematic examination of financial records, while internal audit focuses on internal controls and processes and statutory audit is mandated by law.

• Audit is a systematic examination of financial records to ensure accuracy and compliance with regulations.

• Internal audit is conducted by employees within the organization to evaluate internal controls and processes.

• Statutory audit is an external audit mandated by law to ensure the accuracy of financial statements for re...read more

My other areas of interest include reading, writing, and traveling.

• I enjoy reading books on various topics, including fiction, non-fiction, and self-help.

• I also like to write articles and blogs on different subjects, such as technology, lifestyle, and travel.

• Traveling is one of my passions, and I love exploring new places and cultures.

• I have visited several countries, including the USA, UK, France, and Thailand.

• I believe that these interests have helped me develop a well-roun...read more

Internal audit is conducted by company's own employees while statutory audit is conducted by external auditors as per legal requirements.

• Internal audit is voluntary while statutory audit is mandatory.

• Internal audit is conducted to assess and improve internal controls and processes while statutory audit is conducted to ensure compliance with legal requirements.

• Internal audit is conducted throughout the year while statutory audit is conducted once a year.

• Internal audit reports ...read more

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

• Materiality is a concept used in auditing and accounting to determine the relevance of information.

• It involves assessing the impact of an item or event on the financial statements and whether it would influence the decisions of users.

• Materiality is subjective and depends on the nature and size of the entity being audited.

• Overall materiality is the maximum amount of mis...read more

Sampling is the process of selecting a subset of individuals from a larger population to represent the whole.

• Sampling involves selecting a smaller group from a larger population for research or analysis.

• Types of sampling include random sampling, stratified sampling, cluster sampling, and convenience sampling.

• Random sampling involves each member of the population having an equal chance of being selected.

• Stratified sampling involves dividing the population into subgroups and th...read more

To verify purchases of a company, you can follow these steps:

• Review purchase orders and invoices to ensure they are accurate and match the company's records

• Check if the purchases were authorized by the appropriate personnel

• Compare the purchase amounts with the budget or financial forecasts

• Verify the receipt of goods or services by cross-referencing with delivery notes or service agreements

• Perform supplier reconciliations to ensure all purchases are accounted for

• Conduct period...read more

NPA loan meaning, slab rate limit for tax audit, and ITR form 1,2,3 application

• NPA loan stands for Non-Performing Asset loan which is a loan that is in default or close to being in default

• The slab rate limit for tax audit is Rs. 1 crore for businesses and Rs. 50 lakhs for professionals

• ITR form 1 is for individuals with income up to Rs. 50 lakhs, ITR form 2 is for individuals and HUFs with income over Rs. 50 lakhs, and ITR form 3 is for individuals and HUFs with income from bu...read more

International tax refers to the taxation of income in multiple countries, often involving complex rules and regulations.

• International tax involves determining how much tax a person or company owes in different countries based on their income and activities.

• It can be influenced by tax treaties between countries, transfer pricing rules, and foreign tax credits.

• Multinational corporations often face challenges in complying with international tax laws and minimizing their tax liab...read more

Amendments in company law refer to changes made in the legal framework governing companies.

• The Companies Act, 2013 was amended in 2020 to decriminalize minor offences and promote ease of doing business.

• The Companies (Amendment) Bill, 2020 was introduced to further amend the Companies Act, 2013.

• Amendments may also be made to other laws affecting companies, such as the Insolvency and Bankruptcy Code.

• Amendments aim to improve corporate governance, increase transparency, and prot...read more

Tax Deducted at Source (TDS) under section 194 CIJ

• Section 194 CIJ of the Income Tax Act deals with TDS on payment of compensation on acquisition of certain immovable property.

• TDS is deducted at the rate of 10% on the amount of compensation paid.

• The person responsible for making the payment is required to deduct TDS and deposit it with the government.

• The TDS deducted needs to be reported and filed in the TDS return.

• Failure to deduct or deposit TDS may attract penalties and int...read more

Related party transactions as per AS18 are transactions between a reporting entity and its related parties.

• Related party transactions include transactions between a company and its subsidiaries, associates, key management personnel, and their close family members.

• AS18 requires disclosure of related party transactions in the financial statements to ensure transparency and prevent conflicts of interest.

• Examples of related party transactions include sales or purchases of goods o...read more

Direct taxes are paid directly by individuals or organizations to the government, while indirect taxes are collected by intermediaries and passed on to the government.

• Direct taxes are levied on individuals and organizations based on their income or profits, such as income tax and corporate tax.

• Indirect taxes are imposed on goods and services, and are ultimately paid by the end consumer, such as sales tax and value-added tax (VAT).

• Direct taxes are progressive in nature, meanin...read more

The current prevailing GST rates in India vary from 0% to 28% depending on the goods or services.

• GST rates are divided into 4 slabs - 5%, 12%, 18%, and 28%

• Some goods and services are exempted from GST, such as healthcare and education

• Luxury items like cars and tobacco products have higher GST rates

• GST rates are subject to change based on government policies and economic conditions

The income tax basic limit in India for individuals is Rs. 2.5 lakhs per annum.

• Individuals earning up to Rs. 2.5 lakhs per annum are exempt from income tax.

• For senior citizens (age 60 years or above), the basic limit is Rs. 3 lakhs per annum.

• For super senior citizens (age 80 years or above), the basic limit is Rs. 5 lakhs per annum.

• Income tax rates increase with income levels above the basic limit.

• The basic limit is subject to change with amendments in the annual budget.

IND AS is applicable to all companies in India, aligning their financial reporting with international standards.

• IND AS is applicable to all companies in India, including listed and unlisted companies.

• It aims to align the financial reporting of Indian companies with international accounting standards.

• Companies need to comply with the specific requirements and disclosures outlined in the applicable IND AS.

• Examples of IND AS include revenue recognition (IND AS 115), leases (IND ...read more

Idea software is a project management tool used to plan, track, and manage tasks and resources.

• Idea software helps in creating project plans and timelines

• It allows tracking of project progress and resource allocation

• It provides collaboration tools for team members to communicate and share files

• Examples of idea software include Trello, Asana, and Microsoft Project

Reconciling bank statements with pass books

• Compare the transactions in the bank statement with those in the pass book

• Identify any discrepancies and investigate them

• Make necessary adjustments to the pass book or bank statement

• Ensure that the closing balance in both the bank statement and pass book match

Yes, I have good accountancy knowledge.

• I have a strong understanding of financial statements and their preparation.

• I am familiar with accounting principles and practices, such as accruals, depreciation, and inventory valuation.

• I have experience in using accounting software and tools, such as QuickBooks or Excel.

• I am able to analyze financial data and provide insights for decision-making.

• I have completed relevant coursework or certifications in accounting.

• I have practical expe...read more

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

TDS stands for Tax Deducted at Source, while TCS stands for Tax Collected at Source. Both are types of taxes collected by the government.

• TDS is deducted by the payer at the time of making payment to the payee, while TCS is collected by the seller from the buyer at the time of sale of goods.

• TDS is applicable on various types of income like salary, interest, commission, etc., while TCS is applicable on the sale of certain goods like scrap, minerals, etc.

• TDS rates vary based on ...read more

Vlookup is a function in Excel that allows you to search for a value in a column and return a corresponding value from another column.

• Vlookup stands for vertical lookup.

• It is commonly used to find specific data in large datasets.

• The function requires four arguments: lookup value, table array, column index number, and range lookup.

• The lookup value is the value you want to search for.

• The table array is the range of cells where the data is located.

• The column index number is the ...read more

To verify fixed assets, conduct physical inspections, review documentation, reconcile records, and perform valuation assessments.

• Conduct physical inspections of fixed assets to ensure their existence and condition.

• Review documentation such as purchase invoices, receipts, and maintenance records to verify the acquisition and maintenance of fixed assets.

• Reconcile fixed asset records with general ledger accounts to ensure accuracy and completeness.

• Perform valuation assessments t...read more

I am interested in both accounting and auditing, but I have a stronger interest in auditing.

• Strong interest in auditing due to the investigative nature of the work

• Enjoy analyzing financial statements and identifying discrepancies

• Interested in understanding and evaluating internal controls

• Accounting is also appealing, but auditing offers more challenges and opportunities for growth

TDS stands for Tax Deducted at Source. Sections 194C, 194J, 194H, and 194IB are different sections under which TDS is applicable for various types of payments.

• TDS is a system introduced by the Income Tax Department where tax is deducted at the time of payment.

• Section 194C deals with TDS on payments made to contractors/sub-contractors for work contracts.

• Section 194J deals with TDS on professional or technical services.

• Section 194H deals with TDS on commission payments.

• Section ...read more

Recent amendments in GST include changes in return filing, input tax credit, and e-invoicing.

• The due date for filing GSTR-3B has been extended for taxpayers with turnover up to Rs. 5 crore.

• Input tax credit can now be claimed only up to 5% of the eligible credit available in GSTR-2B.

• E-invoicing has been made mandatory for businesses with turnover exceeding Rs. 50 crore.

• Late fee for non-filing of GSTR-3B has been reduced to Rs. 50 per day for taxpayers with nil liability.

• The GS...read more