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

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.

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

The amount shown in the trial balance will be 1000.

• The trial balance includes the balances from the cash book and other ledger accounts.

• The amount shown in the cash book represents the actual cash balance.

• The amount shown in the pass book represents the bank balance.

• Bank reconciliation statement helps identify the differences between the cash book and pass book balances.

• In this case, the difference is 500 (1500 - 1000).

• The difference will be adjusted in the bank reconciliatio...read more

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

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

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.

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

Trial balance needs to match to ensure accuracy of financial statements.

• Trial balance is a statement of all ledger balances.

• It ensures that total debits equal total credits.

• If there is a discrepancy, it indicates an error in the accounting records.

• Matching trial balance is important for accurate financial reporting.

• Errors can be identified and corrected before finalizing financial statements.

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

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

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

Internal audit is a systematic evaluation of an organization's operations and controls conducted by internal auditors.

• Internal audit helps organizations evaluate and improve their risk management, control, and governance processes.

• Internal auditors provide independent and objective assessments of the organization's operations.

• Internal audit can help identify areas of inefficiency, fraud, or non-compliance with regulations.

• Examples of internal audit activities include reviewin...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

Essential skills for Excel and SAP include data analysis, reporting, and understanding of business processes.

• Proficiency in Excel functions like VLOOKUP, SUMIF, and pivot tables for data analysis.

• Familiarity with SAP modules relevant to the business, such as FI (Financial Accounting) or MM (Materials Management).

• Ability to create and interpret reports in both Excel and SAP for informed decision-making.

• Understanding of data visualization techniques to present data effectively ...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

Advise clients on the benefits and considerations of voluntarily paying advance tax to manage their tax liabilities effectively.

• Understand the client's income sources to estimate tax liability accurately.

• Consider the benefits of avoiding interest and penalties by paying advance tax.

• Example: If a client expects a significant capital gain, they should pay advance tax to avoid a hefty tax bill later.

• Advise on the timing of payments to align with income realization, ensuring they...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

AS-9 outlines the criteria for recognizing revenue in financial statements, ensuring accurate reporting of income.

• Revenue is recognized when it is earned and realizable, meaning the seller has completed their part of the transaction.

• For goods sold, revenue is recognized at the point of sale when the risks and rewards of ownership are transferred to the buyer.

• For services rendered, revenue is recognized when the service is performed, such as when a consulting service is comple...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

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