100+ Article Assistant Interview Questions and Answers

GST returns are filed on monthly, quarterly, and yearly basis to report taxable transactions to the government.

• GST returns are filed by businesses to report their sales, purchases, and tax liability to the government.

• Monthly returns are filed by regular taxpayers, while quarterly returns are filed by composition scheme taxpayers.

• Yearly returns are filed to reconcile the annual financial statements with the monthly and quarterly returns.

• Examples of GST returns include GSTR-1 (...read more

Types of opinions include unqualified, qualified, adverse, and disclaimer opinions.

• Unqualified opinion: when financial statements are fairly presented.

• Qualified opinion: when there are limitations to the audit.

• Adverse opinion: when financial statements are not fairly presented.

• Disclaimer opinion: when auditors cannot form an opinion due to lack of information.

Those charged with governance are individuals or groups responsible for overseeing the strategic direction and performance of an organization.

• Those charged with governance are typically the board of directors, trustees, or similar governing body of an organization.

• They are responsible for setting the organization's strategic objectives, overseeing management's performance, and ensuring accountability.

• Examples include the board of directors of a company, the trustees of a non-...read more

Yes, I know about data science.

• Data science is a multidisciplinary field that uses scientific methods, processes, algorithms, and systems to extract knowledge and insights from structured and unstructured data.

• It involves various techniques such as data mining, machine learning, statistical analysis, and visualization to uncover patterns, make predictions, and solve complex problems.

• Data scientists use programming languages like Python or R, and tools like TensorFlow or Table...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

Cost accounting is a branch of accounting that focuses on calculating and controlling the cost of production.

• Cost accounting involves analyzing, recording, and reporting costs related to production processes.

• It helps in determining the cost of goods sold and evaluating the profitability of products or services.

• Cost accounting also assists in budgeting, cost control, and decision-making within an organization.

• Examples of cost accounting methods include job costing, process cos...read more

Internal audit provides valuable insights into an organization's operations, risk management, and control processes.

• Internal audit helps identify and mitigate risks within an organization.

• It provides assurance to management and stakeholders that internal controls are effective.

• Internal auditors play a crucial role in ensuring compliance with laws, regulations, and company policies.

• They help improve operational efficiency and effectiveness by identifying areas for improvement....read more

Transfer pricing was introduced to prevent tax evasion and ensure fair pricing between related entities.

• To prevent tax evasion by multinational companies

• To ensure fair pricing between related entities

• To prevent profit shifting to low-tax jurisdictions

• To comply with international tax regulations such as OECD guidelines

I chose statutory audit because of its importance in ensuring financial transparency and compliance with regulations.

• Statutory audit helps in verifying the accuracy of financial statements and ensuring compliance with laws and regulations.

• It provides assurance to stakeholders and investors about the financial health and integrity of the organization.

• Statutory audit also helps in detecting and preventing fraud and errors in financial reporting.

• I find the analytical and investi...read more

Trade receivables are audited by verifying the existence, valuation, and rights of the receivables.

• Verify the existence of trade receivables by confirming with customers through direct communication or third-party confirmations.

• Assess the valuation of trade receivables by reviewing the aging schedule and assessing the likelihood of collection.

• Examine the rights associated with trade receivables by reviewing contracts, invoices, and other relevant documentation.

• Perform analyti...read more

There are 7 types of ITR forms for different types of taxpayers and income sources.

• ITR-1: For individuals with income up to Rs. 50 lakhs and income sources limited to salary, one house property, and other sources like interest income

• ITR-2: For individuals and HUFs with income from capital gains, foreign assets, and more than one house property

• ITR-3: For individuals and HUFs with income from business or profession

• ITR-4: For individuals, HUFs, and firms (other than LLP) with in...read more

The three components of cash flow statement are operating, investing, and financing activities.

• Operating activities include cash inflows and outflows from day-to-day business operations.

• Investing activities include cash inflows and outflows from buying or selling long-term assets.

• Financing activities include cash inflows and outflows from borrowing or repaying loans, issuing or buying back stock, and paying dividends.

• The net cash flow from all three activities is reported on ...read more

Stat audit is important for ensuring accuracy, compliance, and transparency in financial statements.

• Stat audit helps in verifying the accuracy of financial statements and ensuring that they are free from material misstatements.

• It provides assurance to stakeholders that the financial information presented is reliable and trustworthy.

• Stat audit helps in detecting and preventing fraud, errors, and irregularities in financial reporting.

• It ensures compliance with applicable laws, ...read more

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

ESI, PF, and PT are applicable to employees in India based on certain criteria.

• ESI (Employee State Insurance) is applicable to employees earning less than Rs. 21,000 per month and provides medical benefits.

• PF (Provident Fund) is applicable to establishments with 20 or more employees and provides retirement benefits.

• PT (Professional Tax) is a state-level tax applicable to employees based on their salary slab.

• All three deductions are mandatory for eligible employees in India.

• Em...read more

RCM under GST law refers to Reverse Charge Mechanism where the recipient of goods/services is liable to pay tax instead of the supplier.

• RCM is applicable when a registered dealer purchases goods/services from an unregistered dealer.

• Under RCM, the recipient of goods/services is responsible for paying the tax directly to the government.

• RCM is mainly applicable in cases of specified goods/services like transportation services, legal services, etc.

• Input tax credit can be claimed ...read more

CA focuses on accounting and auditing, while CMA focuses on management accounting and financial management.

• CA primarily focuses on accounting, auditing, taxation, and financial reporting.

• CMA primarily focuses on management accounting, financial management, and strategic management.

• CA is more suitable for individuals interested in audit and taxation, while CMA is more suitable for individuals interested in management accounting and financial analysis.

• CA is regulated by the Ins...read more

Statutory audit is mandatory by law to ensure financial statements are accurate and reliable.

• Statutory audit is required by law for companies to ensure compliance with regulations.

• It provides assurance to stakeholders that financial statements are accurate and reliable.

• It helps identify any financial irregularities or fraud within the company.

• It helps improve the overall financial management of the company.

• Examples of statutory audits include audits of public companies, banks...read more

Sec 40(3) disallows certain expenses if not paid by account payee cheque or account payee bank draft. Sec 269ST restricts cash transactions above a certain limit.

• Sec 40(3) of the Income Tax Act disallows certain expenses if not paid by account payee cheque or account payee bank draft.

• This section aims to promote digital transactions and prevent tax evasion.

• For example, if a business pays rent in cash without using a cheque or bank draft, that expense may be disallowed under S...read more

Transfer pricing is the setting of prices for goods and services sold between related entities within an organization.

• Transfer pricing is used to determine the cost of goods and services transferred between different divisions or subsidiaries of a company.

• It helps in allocating profits and costs appropriately among different parts of the organization.

• Transfer pricing is important for tax purposes to ensure that transactions between related parties are conducted at arm's lengt...read more

TDS sections refer to the different sections under which tax is deducted at source.

• TDS sections are numbered from 192 to 196D.

• Each section specifies the rate at which TDS is to be deducted.

• Section 194C applies to payments made to contractors and specifies a TDS rate of 1% for individuals and HUFs, and 2% for others.

• Section 194J applies to professional or technical services and specifies a TDS rate of 10%.

• Section 195 applies to payments made to non-residents and specifies a TD...read more

The tax slab for individuals varies based on their income levels.

• Tax slabs are different for different income ranges

• The tax rates increase as the income level increases

• There are various deductions and exemptions available to reduce the tax liability

• The tax slabs may vary from year to year based on government policies

Inventory audit involves verifying physical stock with recorded amounts and assessing valuation methods.

• Conduct a physical count of inventory

• Compare physical count with recorded amounts in inventory records

• Assess the valuation method used for inventory

• Check for obsolete or damaged inventory

• Verify inventory ownership and existence

• Review inventory cutoff procedures

• Assess internal controls over inventory

• Perform analytical procedures to identify unusual inventory balances

• Document...read more

Fundamental principles of accounting include going concern, consistency, materiality, and prudence.

• Going concern principle assumes that the business will continue to operate in the foreseeable future.

• Consistency principle requires that accounting methods and practices remain consistent from one period to another.

• Materiality principle states that only significant information should be disclosed in financial statements.

• Prudence principle suggests that assets and income should n...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

Ind AS 2 outlines the principles for the valuation and measurement of inventory.

• Ind AS 2 requires inventory to be measured at the lower of cost and net realizable value.

• Cost includes all costs incurred to bring the inventory to its present location and condition.

• Net realizable value is the estimated selling price less estimated costs to complete and sell.

• Ind AS 2 provides guidance on the cost formulas that can be used to determine the cost of inventory, such as FIFO, weighted...read more

Indirect tax domain offers diverse exposure and challenges, contributing to professional growth.

• Indirect tax laws are complex and dynamic, providing continuous learning opportunities.

• Working in indirect tax domain involves analyzing business transactions and ensuring compliance with regulations.

• Opportunity to work with diverse clients across industries, gaining valuable experience.

• Contribution to strategic decision-making process by providing tax insights and solutions.

• Potent...read more

Writing a letter to Income Tax officer

• Address the letter to the specific Income Tax officer's name and designation

• Clearly state the purpose of the letter (e.g. inquiry about tax assessment, request for extension)

• Provide relevant details such as taxpayer's name, PAN number, and any supporting documents

• Politely request for any necessary actions or information from the officer

• Close the letter with a formal sign-off and contact information

Gift provisions in Income Tax law allow for taxation of gifts received exceeding a certain limit.

• Gifts received exceeding Rs. 50,000 in a financial year are taxable under Income Tax law.

• Gifts received from relatives, on occasions like marriage or inheritance, are exempt from tax.

• Gifts received from non-relatives exceeding Rs. 50,000 are taxable as 'Income from Other Sources'.

Fixed assets are verified by physical inspection and reconciliation with records.

• Physical inspection of fixed assets is conducted to ensure their existence and condition.

• Reconciliation of fixed asset records with physical inspection results is done to ensure accuracy.

• Verification of fixed assets also involves checking for any additions, disposals, or impairments.

• Documentation of fixed asset verification procedures and results is important for audit purposes.

• Examples of fixed ...read more

I scored 85 in IPCC

• I scored 85 in IPCC

• I secured good marks in all subjects

• My score reflects my dedication and hard work

• I am confident that I can apply my knowledge in practical scenarios

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

CARO clauses are important for auditing purposes

• Clause 1: Reporting on internal financial controls

• Clause 2: Reporting on statutory dues

• Clause 3: Reporting on default in repayment of loans

• Clause 4: Reporting on fraud by the company or its employees

• Clause 5: Reporting on managerial remuneration

Internal audit is a process where an organization's operations, financials, and compliance are reviewed by an internal team.

• Internal audit helps ensure that the organization's operations are efficient and effective.

• It also helps in identifying risks and ensuring compliance with laws and regulations.

• Internal auditors provide recommendations for improvement based on their findings.

• Examples of internal audit activities include reviewing financial statements, assessing internal c...read more

TDS deposit date is the due date by which tax deducted at source must be deposited with the government.

• TDS deposit date is usually the 7th of the following month for non-government deductors.

• For government deductors, TDS deposit date is usually the 7th of the following month except for March, where it is the 30th.

• Late deposit of TDS may attract interest and penalties.

Audit documentation is the written record of the audit procedures performed, evidence obtained, and conclusions reached by auditors.

• Audit documentation provides a detailed account of the audit process and serves as a basis for the audit report.

• It includes working papers, financial statements, correspondence, and other relevant information.

• The documentation should be organized, complete, and properly referenced for future reference and review.

• Examples of audit documentation in...read more

The new tax slab for individuals in India is as follows: 0-2.5 lakh - Nil, 2.5-5 lakh - 5%, 5-10 lakh - 20%, above 10 lakh - 30%

• 0-2.5 lakh income is taxed at 0%

• 2.5-5 lakh income is taxed at 5%

• 5-10 lakh income is taxed at 20%

• Above 10 lakh income is taxed at 30%

Yes, I am comfortable with travelling for work purposes.

• I am willing to travel for client meetings, audits, and other work-related tasks

• I understand that travelling may be required occasionally and I am prepared for it

• I have previous experience travelling for work during internships or previous jobs

Residential status refers to the classification of an individual based on the amount of time they have spent in a particular country during a financial year.

• Residential status determines the tax liability of an individual in a specific country.

• It is important for tax purposes and can vary based on the number of days spent in the country.

• There are different categories of residential status such as resident, non-resident, and resident but not ordinarily resident.

• Residential sta...read more

Sec 44AD of Income Tax Act is a presumptive taxation scheme for small businesses.

• It is applicable to small businesses with a turnover of up to Rs. 2 crores.

• Under this scheme, the income of the business is presumed to be 8% of the total turnover.

• The taxpayer is not required to maintain detailed books of accounts.

• However, the taxpayer can declare income higher than 8% of turnover if they wish to.

• This scheme is beneficial for small businesses as it reduces the compliance burden....read more

Coinmen can be found through online platforms, referrals, and networking events.

• Search for coinmen on LinkedIn, Indeed, and other job search websites.

• Ask for referrals from colleagues, friends, and family members.

• Attend networking events and conferences to meet potential coinmen.

• Join professional organizations and groups related to accounting and finance.

• Consider hiring a recruitment agency to help find qualified coinmen.

• Post job openings on company websites and social media ...read more

Recent finance amendments in budgets impact financial regulations and policies.

• Introduction of new tax laws or changes in existing tax rates

• Updates on government spending priorities and allocations

• Revisions to financial reporting standards

• Changes in import/export duties or tariffs

• Introduction of stimulus packages or economic relief measures

Sec 44ADA of income tax act allows professionals to declare 50% of their gross receipts as income for tax purposes.

• Sec 44ADA applies to professionals like doctors, lawyers, accountants, etc.

• Professionals can declare 50% of their gross receipts as income for tax purposes.

• This provision simplifies the tax calculation process for professionals.

• Example: A doctor earning Rs. 10 lakhs in gross receipts can declare Rs. 5 lakhs as income under Sec 44ADA.

Sections 9, 10, and 16 of the CGST Act pertain to various aspects of taxation under the Goods and Services Tax regime.

• Section 9 deals with the levy and collection of CGST on intra-state supplies of goods or services.

• Section 10 covers the registration requirements for persons liable to pay tax under the Act.

• Section 16 pertains to the eligibility and conditions for taking input tax credit.

• Examples: Section 9 ensures that CGST is levied on all intra-state supplies, Section 10 ma...read more

GST form due dates & guidelines

• GST returns are due on a monthly, quarterly, or annual basis depending on the turnover of the business

• Due dates for filing GST returns vary based on the type of return and the state in which the business is registered

• Late filing of GST returns can result in penalties and interest charges

• It is important to keep track of due dates and comply with GST guidelines to avoid any issues with the tax authorities

Some common Excel functions and formulas include SUM, VLOOKUP, IF, CONCATENATE, and AVERAGE.

• SUM: Adds up 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 condition is true and another if false

• CONCATENATE: Joins two or more text strings into one string

• AVERAGE: Calculates the average of a range of cells