60+ Associate2 Interview Questions and Answers

HPLC is a technique used to separate, identify, and quantify components in a mixture. UV detection is commonly used in HPLC to measure analyte concentration.

• HPLC stands for High-Performance Liquid Chromatography.

• It uses a liquid mobile phase and a solid stationary phase to separate components based on their interactions with the stationary phase.

• UV detection in HPLC involves measuring the absorbance of UV light by the analyte.

• UV detectors are commonly used because many compou...read more

Test of control for audit of trade receivables involves evaluating the effectiveness of internal controls over the accuracy and completeness of trade receivables.

• Understand the client's internal control system related to trade receivables

• Identify key controls and perform walkthroughs to test their effectiveness

• Perform substantive procedures to test the accuracy and completeness of trade receivables

• Evaluate the results of the tests and communicate any issues or deficiencies to...read more

Deductions under sections 80C and 80D of the Income Tax Act allow taxpayers to reduce their taxable income by investing in specified avenues or paying for health insurance premiums.

• Section 80C allows deductions for investments in instruments such as PPF, EPF, NSC, ELSS, life insurance premiums, etc.

• The maximum deduction under section 80C is Rs. 1.5 lakh per financial year.

• Section 80D allows deductions for health insurance premiums paid for self, spouse, children, and parents....read more

Evaluating an integration from an IT point of view involves assessing compatibility, functionality, scalability, security, and performance.

• Assess compatibility of systems and applications being integrated

• Evaluate functionality to ensure seamless operation and user experience

• Consider scalability to accommodate future growth and changes

• Review security measures to protect data and prevent breaches

• Analyze performance to ensure optimal speed and efficiency

Evaluate divestiture from IT perspectives, focusing on infrastructure, data management, compliance, and integration challenges.

• Assess IT infrastructure: Evaluate if existing systems can support the divested entity's needs, e.g., cloud services.

• Data management: Analyze data ownership and transfer processes to ensure compliance with regulations, like GDPR.

• Compliance and security: Ensure that the divested entity meets industry standards and security protocols, e.g., HIPAA for he...read more

Waterfall distribution is a method of distributing funds or assets to investors in a predetermined sequence.

• Waterfall distribution is commonly used in private equity and real estate investments.

• It involves distributing profits or proceeds to different classes of investors in a specific order.

• The distribution waterfall typically includes hurdles or thresholds that must be met before certain investors receive their share.

• Examples of waterfall distribution include 'cash flow wat...read more

Temperature calibration of a thermometer

• Calibration involves comparing the thermometer readings to a known standard

• Adjustments are made to the thermometer if there are any discrepancies

• Calibration is important to ensure accurate and reliable temperature measurements

• Examples of standards used for calibration include NIST-traceable thermometers and ice-point method

The major clauses of tax audit report in Form 3CD

• The tax audit report in Form 3CD has 18 major clauses

• These clauses cover various aspects of the audit, such as accounting policies, depreciation, loans and advances, etc.

• Some of the important clauses include Clause 4 (accounting policies), Clause 13 (loans and advances), and Clause 17 (related party transactions)

Corporate action refers to any event initiated by a publicly traded company that impacts its shareholders and can include dividends, stock splits, mergers, acquisitions, and more.

• Corporate actions are events initiated by publicly traded companies

• They can impact shareholders and may involve changes in ownership, capital structure, or financial position

• Examples of corporate actions include dividends, stock splits, mergers, acquisitions, spin-offs, rights issues, and share buyba...read more

Financial reporting involves the disclosure of financial information to stakeholders. Mutual funds pool money from investors to invest in securities.

• Financial reporting is the process of presenting financial information to stakeholders, such as investors, creditors, and regulators.

• It includes financial statements like balance sheets, income statements, and cash flow statements.

• Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversif...read more

Derivatives are financial instruments whose value is derived from an underlying asset or index.

• Types of derivatives include futures, options, and swaps.

• Futures contracts obligate parties to buy/sell an asset at a predetermined price on a specific date.

• Options give the holder the right, but not the obligation, to buy/sell an asset at a set price before expiration.

• Swaps involve exchanging cash flows or liabilities between parties, often used for interest rates or currencies.

• Exa...read more

PE Fund life cycle involves fundraising, investment, monitoring, and exit strategies.

• Fundraising: PE firms raise capital from investors to form a fund.

• Investment: Funds are used to acquire equity stakes in companies.

• Monitoring: PE firms actively manage and monitor their investments.

• Exit strategies: PE firms aim to exit investments through IPOs, mergers, or acquisitions.

Sulfated ash refers to the inorganic residue left behind after a substance is burned at high temperatures.

• Sulfated ash is a measure of the inorganic content of a substance.

• It is determined by burning a sample of the substance and measuring the residue.

• The residue consists of minerals and other inorganic compounds that do not burn.

• Sulfated ash is commonly used in the analysis of lubricants and petroleum products.

• It helps determine the level of impurities and contaminants in th...read more

The audit process involves systematic examination of financial records to ensure accuracy and compliance.

• Planning: Define the scope and objectives of the audit, e.g., financial statement audit.

• Risk Assessment: Identify areas of potential risk, such as revenue recognition.

• Fieldwork: Gather evidence through testing transactions and controls, e.g., sampling invoices.

• Reporting: Prepare an audit report summarizing findings and recommendations.

• Follow-up: Ensure that corrective acti...read more

Different methods of depreciation include straight-line, double declining balance, units of production, and sum-of-the-years-digits.

• Straight-line method: Allocates an equal amount of depreciation each year.

• Double declining balance method: Accelerates depreciation in the early years of an asset's life.

• Units of production method: Depreciation is based on the actual usage of the asset.

• Sum-of-the-years-digits method: Accelerates depreciation but in a more gradual manner compared ...read more

Accrued expenses are recorded with a debit to an expense account and a credit to a liability account.

• Debit the expense account to recognize the expense

• Credit the accrued liability account to show the obligation

• Example: Debit Salaries Expense, Credit Salaries Payable

Revenue testing involves applying cut off procedures to ensure accurate reporting of revenue.

• Revenue testing is a process of verifying the accuracy of revenue reported in financial statements.

• Cut off procedures are applied to ensure that revenue is recorded in the correct period.

• Examples of cut off procedures include reviewing sales invoices, shipping documents, and bank statements.

• Revenue testing also involves verifying the completeness and accuracy of revenue recognition po...read more

Titrations are analytical techniques used to determine the concentration of a substance in a solution by reacting it with a known volume and concentration of another substance.

• Types of titrations include acid-base titrations, redox titrations, and complexometric titrations.

• Procedures involve adding a titrant (solution of known concentration) to the analyte (solution of unknown concentration) until the reaction is complete.

• Methods include using indicators to determine the endp...read more

The golden rule of accounting states that for every debit there must be an equal credit.

• The golden rule of accounting is also known as the double-entry accounting system.

• It ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced.

• For every transaction recorded, there must be at least one debit and one credit entry.

• Example: If cash is received, the Cash account is debited and another account (such as Revenue or Accounts Receivable) is credited.

Sampling methods are techniques used to select individuals or items from a population for analysis.

• 1. Random Sampling: Every individual has an equal chance of being selected. Example: Lottery system.

• 2. Stratified Sampling: Population is divided into subgroups, and samples are drawn from each. Example: Surveying different age groups.

• 3. Systematic Sampling: Selecting every nth individual from a list. Example: Choosing every 10th person in a queue.

• 4. Cluster Sampling: Dividing t...read more

I handle escalations by staying calm, listening actively, empathizing with the customer, finding a solution, and escalating to a higher authority if needed.

• Stay calm and composed during the escalation

• Listen actively to understand the customer's concerns

• Empathize with the customer to show understanding and build rapport

• Find a solution that meets the customer's needs and expectations

• Escalate to a higher authority if necessary for resolution

Ending prepaid expenses can be calculated by subtracting the prepaid expenses at the beginning of the period from the total prepaid expenses incurred during the period.

• Determine the prepaid expenses at the beginning of the period

• Determine the total prepaid expenses incurred during the period

• Subtract the prepaid expenses at the beginning of the period from the total prepaid expenses incurred during the period

• The resulting amount is the ending prepaid expenses

I have extensive experience in auditing, focusing on compliance, financial accuracy, and operational efficiency.

• Conducted internal audits for a mid-sized company, identifying discrepancies that saved the organization 15% in operational costs.

• Participated in external audits, collaborating with auditors to ensure compliance with financial regulations and standards.

• Developed audit checklists and procedures that streamlined the auditing process, reducing the time taken by 20%.

• Tra...read more

PwC is a leading professional services firm. A bearer cheque is a type of cheque that can be cashed by anyone who possesses it.

• PwC is known for its expertise in audit, tax, and advisory services

• It has a global presence with offices in over 150 countries

• Bearer cheques are risky as they can be easily stolen and cashed by anyone

• They are not commonly used anymore due to the rise of electronic banking

• An example of a bearer cheque is a traveler's cheque

Accounting concepts are basic principles that guide the preparation of financial statements, while accounting conventions are customs and traditions that have evolved over time.

• Accounting concepts are theoretical and fundamental principles that form the basis of accounting practices.

• Accounting conventions are practical guidelines and customs followed in the preparation and presentation of financial statements.

• Examples of accounting concepts include going concern, accruals, co...read more

The number of umbrellas sold in July in Ernakulam varies depending on factors like weather, tourist influx, and local demand.

• Sales may increase during monsoon season due to heavy rainfall

• Tourist influx may also impact umbrella sales as visitors may purchase them as souvenirs or for practical use

• Local demand for umbrellas may be higher in areas with frequent rain showers

• Promotions or discounts on umbrellas can also influence sales numbers

The Golden Principles of Accounting guide the recording and reporting of financial transactions.

• 1. Principle of Duality: Every transaction affects at least two accounts. For example, buying inventory increases assets and decreases cash.

• 2. Principle of Conservatism: Accountants should anticipate no profits, but anticipate all losses. For instance, if a company expects a lawsuit, it should record a liability.

• 3. Principle of Consistency: Once an accounting method is adopted, it ...read more