Assistant Statutory Audit Manager Interview Questions and Answers

I have experience in auditing financial statements and can differentiate between accounts payable and accrued expenses. Materiality is the threshold for financial information to be considered significant. I assess it based on the size and nature of the item. To check accounts payable, I verify invoices and reconcile vendor statements.

• Experience in auditing financial statements

• Accounts Payable - money owed by a company to its suppliers for goods or services purchased on credit...read more

Internal audit is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.

• Internal audit is conducted by employees of the organization to evaluate and improve the effectiveness of risk management, control, and governance processes.

• Statutory audit is a mandatory audit of the financial statements of an organization conducted by external auditors to ensure compliance with legal requirements.

• Internal audit focuses...read more

Auditing accounts receivable involves verifying the accuracy and completeness of recorded receivables.

• Reviewing the accounts receivable ledger and comparing it to supporting documentation

• Confirming the balances with customers through direct communication or third-party confirmations

• Testing the valuation of receivables by assessing the adequacy of allowances for doubtful accounts

• Examining the aging of receivables to identify any potential collection issues

• Checking for proper r...read more

CARO 2016 and CARO 2020 are two different sets of rules and regulations for statutory audits in India.

• CARO 2016 had 16 clauses while CARO 2020 has 21 clauses.

• CARO 2020 introduced new reporting requirements related to fraud, internal financial controls, and corporate social responsibility.

• CARO 2020 expanded the scope of reporting on related party transactions.

• CARO 2020 requires reporting on defaults in repayment of loans or borrowings from banks or financial institutions.

• CARO ...read more

Schedule 3 refers to the section of a statutory audit report that outlines the auditors' responsibilities and findings.

• Schedule 3 provides details about the scope of the audit and the auditors' opinion on the financial statements.

• It includes information on the auditors' assessment of internal controls and any significant audit findings.

• Changes in Schedule 3 may occur due to updates in auditing standards or changes in the company's operations.

• For example, if a company expands ...read more

Audit trail is a chronological record that provides evidence of the sequence of activities and changes made to a set of data or transactions.

• Audit trail is a log or record of all activities and changes made during an audit process.

• It helps in ensuring the integrity and reliability of financial statements and other audit evidence.

• Audit trail provides a clear and transparent trail of actions taken, allowing for traceability and accountability.

• It includes information such as who...read more