20+ Article Trainee Interview Questions and Answers

To evaluate cost of unsold stock item as per AS2 after 6 months.

• Determine the cost of production or acquisition of the stock item.

• Check if there is any decline in the net realizable value of the item.

• If there is a decline, reduce the cost of the item by the amount of decline.

• If there is no decline, keep the cost of the item as it is.

• Record the evaluation in the books of accounts.

CARO 2020 has additional reporting requirements and emphasis on internal control and risk management compared to CARO 2016.

• CARO 2020 has added reporting requirements such as reporting on fraud, default in repayment of loans, and utilization of Corporate Social Responsibility funds.

• CARO 2020 emphasizes on internal control and risk management, requiring auditors to report on adequacy and effectiveness of internal financial controls.

• Procedure to check sales has been added as a n...read more

The current unemployment rate in India is around 6.9%.

• As of 2021, the estimated number of unemployed people in India is around 40 million.

• The COVID-19 pandemic has significantly impacted the job market in India, leading to a rise in unemployment.

• The unemployment rate varies across different states in India, with some states having higher rates than others.

• The government has implemented various schemes and initiatives to address the issue of unemployment in the country.

BRS is also done for reconciliation, compliance, decision-making, and improving financial processes.

• Reconciliation of financial statements with bank statements or vendor records

• Ensuring compliance with accounting standards and regulations

• Providing accurate financial information for decision-making

• Identifying inefficiencies in financial processes and suggesting improvements

AI work involves using algorithms to simulate human intelligence and decision-making. It has advantages and disadvantages.

• Advantages of AI include increased efficiency, accuracy, and productivity in various industries such as healthcare, finance, and manufacturing.

• Disadvantages of AI include job displacement, bias in decision-making, and potential misuse of AI technology.

• AI can be used to analyze medical data and assist in diagnosis and treatment, making it beneficial in the ...read more

Verification of expenses involves reviewing supporting documents and ensuring accuracy and compliance.

• Reviewing receipts, invoices, and bills to ensure they are legitimate and accurate

• Checking for proper authorization and approval of expenses

• Comparing expenses to budgeted amounts or industry standards

• Ensuring expenses are recorded correctly in the accounting system

• Performing random spot checks to detect any potential fraud or errors

AI has advantages like efficiency and accuracy, but also disadvantages like job displacement and lack of empathy.

• Advantages of AI include increased efficiency and accuracy in tasks such as data analysis and decision-making.

• AI can also improve safety in industries like transportation and manufacturing.

• Disadvantages of AI include job displacement as machines replace human workers in certain industries.

• AI also lacks empathy and the ability to understand complex human emotions an...read more

Public companies are owned by the general public through shares traded on the stock exchange, while private companies are owned by a small group of individuals or investors.

• Public companies have shares that are traded on the stock exchange, allowing anyone to buy or sell them.

• Private companies are owned by a small group of individuals or investors, and their shares are not publicly traded.

• Public companies are required to disclose financial information to the public, while pri...read more

AS2 is a standard for secure data transmission between businesses, with audit considerations including data integrity, authentication, and non-repudiation.

• AS2 stands for Applicability Statement 2

• It is a protocol used for secure and reliable data transmission over the internet

• Audit considerations include ensuring data integrity during transmission

• Authentication of the sender and receiver to prevent unauthorized access

• Non-repudiation to ensure that the sender cannot deny sendin...read more

Revenue recognition for goods involves recognizing revenue when goods are delivered or services are rendered.

• Revenue is recognized when the risks and rewards of ownership have been transferred to the buyer.

• Revenue is recognized at the fair value of the consideration received or receivable.

• Revenue recognition criteria include the amount of revenue can be measured reliably, it is probable that economic benefits will flow to the entity, and the costs incurred or to be incurred c...read more

Exemptions reduce the taxable income directly, while deductions reduce the taxable income indirectly.

• Exemptions are a fixed amount that can be deducted from the total income before calculating tax liability.

• Deductions are expenses or investments that can be subtracted from the total income to arrive at taxable income.

• Exemptions are available to all taxpayers, while deductions may have specific criteria or limits.

• Examples of exemptions include standard deduction, HRA exemption...read more

The rate of income tax for individuals varies based on their income level.

• The tax rate ranges from 0% to 30% depending on the income level

• Individuals with income up to Rs. 2.5 lakhs are exempt from income tax

• Those earning between Rs. 2.5 lakhs to Rs. 5 lakhs are taxed at 5%

• Income between Rs. 5 lakhs to Rs. 10 lakhs is taxed at 20%

• Income above Rs. 10 lakhs is taxed at 30%

• Additional surcharge may apply for high-income earners

I have a strong interest in this domain due to its dynamic nature and potential for growth.

• Passion for the subject matter

• Opportunities for career advancement

• Challenging and constantly evolving environment

Standards on auditing are guidelines for auditors to follow while conducting audits.

• Standards on auditing ensure that audits are conducted in a consistent and reliable manner.

• There are three types of standards on auditing: general standards, fieldwork standards, and reporting standards.

• Examples of general standards include independence, due care, and professional skepticism.

• Examples of fieldwork standards include planning and supervision, internal control evaluation, and audi...read more

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, statements, or operations of a company or organization.

• The purpose of an audit is to ensure accuracy, reliability, and compliance with laws and regulations.

• Auditors examine evidence to form an opinion on the fairness of the financial statements.

• Types of audits include financial audit, operatio...read more

PPE is protective equipment worn to minimize exposure to hazards, while stock refers to goods kept for sale or use in business operations.

• PPE stands for Personal Protective Equipment and includes items like gloves, masks, and goggles to protect against physical, electrical, chemical, and other hazards.

• Stock refers to goods or merchandise kept on hand for sale or use in business operations.

• PPE is used to protect individuals from potential risks in various environments, while s...read more

The union budget has both positive and negative aspects.

• The budget has increased allocation for healthcare and infrastructure.

• However, there is a lack of focus on job creation and agriculture.

• The increase in fuel prices may lead to inflation.

• Overall, the budget seems to be a mixed bag.

The new tax regime in India offers lower tax rates but without deductions and exemptions.

• New tax regime introduced in Budget 2020 offers lower tax rates for individuals who forego deductions and exemptions

• Taxpayers can choose between the old regime with deductions and exemptions or the new regime with lower tax rates

• New tax rates are optional and individuals need to calculate which regime is more beneficial for them

• Example: Under the new regime, income up to Rs 2.5 lakh is ta...read more

FS stands for Financial Services.

• FS refers to the industry that provides financial services such as banking, insurance, investment, and wealth management.

• Financial Services companies help individuals and businesses manage their money, investments, and risks.

• Examples of FS companies include banks like JPMorgan Chase, insurance companies like Allstate, and investment firms like BlackRock.

Depreciation entry with dates

• Depreciation is a non-cash expense that reduces the value of an asset over time

• Depreciation entry includes debiting Depreciation Expense and crediting Accumulated Depreciation

• Depreciation is recorded on a regular basis, usually monthly or annually

• Depreciation entry should include the date of the transaction

I expect firms to provide a supportive learning environment, opportunities for growth, and exposure to diverse clients.

• Supportive learning environment with proper training and guidance

• Opportunities for growth and advancement within the firm

• Exposure to diverse clients and industries to broaden experience

• Clear communication and feedback from supervisors

• Work-life balance and employee well-being initiatives

IT & OC stands for Information Technology and Orientation Course. It is a mandatory training program for Article Trainees.

• IT refers to training in computer software and systems used in accounting and auditing.

• OC refers to training in soft skills, communication, and professional behavior.

• Both IT and OC are essential for developing well-rounded skills as an Article Trainee.

Audit standard refers to the set of guidelines and criteria that auditors must follow while conducting an audit.

• Audit standard ensures consistency and quality in audit processes.

• It provides a framework for auditors to plan, perform, and report on their findings.

• Examples of audit standards include International Standards on Auditing (ISA) and Generally Accepted Auditing Standards (GAAS).