Senior Audit and Assurance Associate

Senior Audit and Assurance Associate Interview Questions and Answers

Updated 15 May 2023

Q1. Where we show accured management fees in financial statements?

Ans.

Accrued management fees are shown in the financial statements under the liabilities section.

Accrued management fees are recognized as a liability in the financial statements.
They are typically reported under the current liabilities section.
The amount of accrued management fees is based on the agreed-upon fee and the period for which the fee is earned.
For example, if the management fee is 2% of assets under management and the assets under management are $10 million, the accrue...read more

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NAV stands for Net Asset Value. It is the value of a fund's assets minus its liabilities.

NAV is calculated by dividing the total value of a fund's assets by the number of outstanding shares.
NAV is used to determine the price at which investors can buy or sell shares in a fund.
NAV is calculated daily for mutual funds and exchange-traded funds (ETFs).

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Realised gain is the profit made from selling an asset, while unrealised gain is the increase in value of an asset that has not been sold.

Realised gain is the actual profit made from selling an asset, while unrealised gain is the increase in value of an asset that has not been sold
Realised gain is recorded in the income statement, while unrealised gain is not recorded until the asset is sold
Realised gain is a cash inflow, while unrealised gain is not
Example of realised gain: ...read more

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Redemption is the repurchase of securities by the issuer, while distribution is the payment of earnings to shareholders.

Redemption involves the issuer buying back its own securities from investors, while distribution involves paying out earnings to shareholders.
Redemption reduces the number of outstanding securities, while distribution does not.
Redemption can be mandatory or voluntary, while distribution is typically mandatory for companies that pay dividends.
Examples of rede...read more

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Ans.

Schedule of investment is a document that lists all the investments made by an entity.

It includes details such as the name of the investment, the date of purchase, the cost, and the current value.
It is used by auditors to verify the accuracy of the financial statements.
It is also used by investors to evaluate the performance of the entity's investments.
Examples of investments that may be included in a schedule of investment are stocks, bonds, mutual funds, and real estate.

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US GAAP and IFRS are two different accounting standards used globally.

US GAAP is rules-based while IFRS is principles-based
US GAAP allows LIFO inventory accounting while IFRS does not
IFRS requires more extensive disclosures in financial statements
US GAAP allows for extraordinary items to be reported separately while IFRS does not
IFRS allows for the reversal of impairment losses while US GAAP does not
US GAAP requires the use of the indirect method for the statement of cash flo...read more

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Ans.

Distribution refers to the process of delivering goods or services from the manufacturer or supplier to the end user or customer.

Distribution involves the movement of products or services from one location to another.
It includes activities such as transportation, warehousing, and inventory management.
Distribution channels can be direct or indirect, and may involve intermediaries such as wholesalers or retailers.
Examples of distribution channels include online marketplaces, br...read more

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Schedule investment refers to a planned investment strategy that involves investing a fixed amount of money at regular intervals.

It involves investing a fixed amount of money at regular intervals, such as weekly, monthly, or quarterly.
This strategy helps to reduce the impact of market volatility on investment returns.
It is also known as dollar-cost averaging.
For example, an investor may decide to invest $100 every month in a mutual fund as part of their schedule investment st...read more