Associate L2 Interview Questions and Answers for Freshers

Materiality is the concept of determining the significance of an item or event in relation to the financial statements as a whole.

• Materiality is a key concept in auditing and is used to determine the level of detail required in an audit.

• It involves assessing the significance of an item or event in relation to the financial statements as a whole.

• Materiality is a matter of professional judgment and is influenced by factors such as the size and nature of the item or event, the c...read more

The 5-step model for revenue recognition involves identifying the contract, identifying performance obligations, determining the transaction price, allocating the transaction price, and recognizing revenue when performance obligations are met.

• Step 1: Identify the contract and its terms

• Step 2: Identify the performance obligations in the contract

• Step 3: Determine the transaction price

• Step 4: Allocate the transaction price to the performance obligations

• Step 5: Recognize revenue ...read more