Audit Associate 2 Interview Questions and Answers

IFRS is a set of accounting standards used globally to ensure consistency and transparency in financial reporting.

• IFRS stands for International Financial Reporting Standards

• It is developed and maintained by the International Accounting Standards Board (IASB)

• IFRS aims to provide a common language for business affairs so that company accounts are understandable and comparable across international boundaries

• Key principles of IFRS include fair presentation, going concern, accrual...read more

I apply IFRS on audit engagements by ensuring compliance with international accounting standards and regulations.

• I review financial statements to ensure they are prepared in accordance with IFRS guidelines

• I analyze accounting policies and practices to identify any deviations from IFRS

• I communicate with clients to address any discrepancies and provide recommendations for compliance

• I stay updated on any changes or updates to IFRS standards to ensure accurate application

The 5 Step Revenue Recognition Model under Ind AS 115 involves identifying the contract, identifying performance obligations, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue as the performance obligations are satisfied.

• Identify the contract: Determine if there is an agreement between two or more parties that creates enforceable rights and obligations.

• Identify performance obligations: Identify the prom...read more

Audit assertions are claims made by management regarding the accuracy of financial statements.

• Audit assertions include existence, completeness, valuation, rights and obligations, and presentation and disclosure.

• They are used by auditors to assess the risk of material misstatement in financial statements.

• For example, existence assertion ensures that assets and liabilities actually exist at a given date.

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

• Materiality helps auditors decide what information to focus on during an audit

• It is based on the principle that only items that could influence the decisions of users of financial statements need to be disclosed

• Materiality is influenced by factors such as size, nature, and circumstances of an item or event

• For example, a $10,000 error in a company wi...read more