20+ Article Assistant Interview Questions and Answers for Freshers

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

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

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

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

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

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

I am expecting a stipend in line with industry standards and commensurate with my skills and qualifications.

• Research industry standards for Article Assistant stipends

• Consider my skills and qualifications when determining expected stipend

• Be prepared to negotiate based on job responsibilities and workload

I scored 65% in CA Intermediate exams.

• Scored 65% in CA Intermediate exams

• Secured a good percentage in the exams

• Performed well in the CA Intermediate exams

AS-22 is an accounting standard that deals with accounting for taxes on income.

• AS-22 is issued by the Institute of Chartered Accountants of India (ICAI).

• It provides guidelines on how to account for current and deferred tax.

• Current tax is the amount of income tax payable based on taxable profit for the year.

• Deferred tax is the tax effect of timing differences between accounting profit and taxable profit.

• AS-22 requires companies to recognize deferred tax assets and liabilities....read more

Statutory audit is mandatory by law, while internal audit is voluntary and conducted by the company itself.

• Statutory audit is conducted to ensure compliance with legal and regulatory requirements.

• Internal audit is conducted to evaluate the effectiveness of internal controls and identify areas for improvement.

• Statutory audit is conducted by an independent external auditor, while internal audit is conducted by employees of the company.

• Examples of statutory audits include audits...read more

Three different Standards on Auditing are ISA, PCAOB, and AS

• ISA - International Standards on Auditing, issued by the International Auditing and Assurance Standards Board (IAASB)

• PCAOB - Public Company Accounting Oversight Board standards for audits of public companies in the United States

• AS - Auditing Standards issued by the Institute of Chartered Accountants of India (ICAI)

Direct tax is levied on individuals and businesses directly by the government, while indirect tax is passed on to consumers through goods and services.

• Direct tax is paid directly by the taxpayer to the government, such as income tax and corporate tax.

• Indirect tax is collected by an intermediary (like a retailer) from the consumer and then passed on to the government, such as sales tax and GST.

• Direct tax is progressive in nature, meaning the more you earn, the higher percentag...read more

Excel has various formulas for calculations and data manipulation.

• SUM: Adds up a range of cells

• AVERAGE: Calculates the average of a range of cells

• VLOOKUP: Searches for a value in the first column of a table and returns a value in the same row from another column

• IF: Performs a logical test and returns one value if the test is true and another if it's false

Audit is a systematic examination of financial records, statements, or operations to ensure accuracy and compliance with laws and regulations.

• Audit involves reviewing financial records and transactions to ensure accuracy and compliance with laws and regulations.

• It helps in providing assurance to stakeholders about the reliability of financial information.

• Auditors use various techniques such as sampling, testing, and verification to gather evidence during the audit process.

• Typ...read more

Journal entries involving TDS and GST

• When recording journal entries with TDS, remember to account for the TDS amount deducted at the time of payment

• For GST, ensure to record both the input and output GST correctly in the journal entries

• Make sure to follow the applicable tax rates and rules for TDS and GST while recording the entries

Changes in budget refer to modifications made to the financial plan or allocation of funds.

• Changes in budget can include increases or decreases in funding for specific projects or departments.

• Budget changes may result from unexpected expenses, revenue fluctuations, or strategic shifts in priorities.

• Effective budget management involves monitoring changes and adjusting plans accordingly.

• Examples of budget changes could be reallocating funds from one project to another, cutting ...read more