Index of Questions All Categories Question Bank Technical Companies Jobs Direct Tax All Indirect Tax Finance HR Financial Management Free Financial Due Diligence General Awareness FP&A Company Details Investment Banking Statutory Audit Internal Audit Treasury Credit Analyst Accounting Big 4 Jobs Finance Jobs How will you do the audit of payroll or employee benefit expenses? What are the criteria to define a reportable segment as per IND AS 108? What are the audit procedures for unusual Journal entries testing? What are the audit procedures for Cash and Cash Equivalents testing? What are the audit procedures for Property, Plant & Equipment testing? What are the audit procedures for Account Receivables testing? Explain the concept of cut off procedure? As an Auditor how will you report fraud committed in the company ? What is the special purpose audit report and general purpose audit report? What is the applicability of CARO 2020? What are the components of Materiality? /What is Performance Materiality and why is it set? What do you understand by Materiality? How and on what basis an auditor assesses materiality? What are account balance assertions ? What are Transaction level assertions? Caro amendments related to CSR Non-financial considerations for make or buy decision Difference between marginal costing and standard costing? Why audit committee is entrusted with RPT approval and not any other committee Non-financial considerations for make or buy decision Also what ratios (liquidity, leverage, etc.) you’ll look into as relationship person and what as credit person while on boarding a new corporate. And also whatās your understanding of the difference between credit and relationship manager. Difference between capital expenditure and revenue expenditure along with examples and with case study In case of export of goods how would u recognise revenue Why do you think audit should be conducted? If there was no statutory requirement under companies act, would you still do an audit? Planning and Execution in audit Why stat audit? Why big 4 even after hectic hours? How to manage a team and client What do you know about FP&A? Tell us about your Article ship challenges. Tell us about your articleship focus. Common Observations or audit points in Procure to Pay Process Tell us about your observations in audit. What have you seen in our annual report? How to estimate NRV? What is the NRV if your competitor is selling same product at lower price? How will you verify cash if its not possible to attend physical verification? Any specific procedures for covid? What is Bank Confirmation? Who Sends it? Which balance would you like to verify the most while conducting statutory Audit? What is BRS (Bank Reconciliation Statement)? How do you use BRS in audit of cash balance? How do you check completeness assertion while performing audit of accounts payable? How will you test the warranty in revenue? There are 50 bank accounts having no balance, 120 bank accounts having very minimum balance then what procedures will you adopt to verify them? Suppose the company is a big brand in Pen manufacturing industry holding more than 150 bank accounts having balance of 1000cr. What audit procedures will you adopt? Will you verify all the bank accounts or else do some sampling checks? Reason if you verify all the bank accounts? Other than balance confirmation what procedures will you adopt for audit of cash and bank balance? If a company have two Government companies as clients which are comprising of almost 30% of trade receivables and they are not responding to management at all, how will you respond as an auditor? If you have debtors balance of Rs 2 crore, and having more than 200 customers then as Statutory Auditor of the Company how will you verify the same? How you deal if the balance confirmation is mismatch while conducting audit of trade receivables. How do you value Raw material as per relevant IND AS? What are the DTA creation criteriaās as per Ind AS and how they are different from AS? Difference between virtual certainty and reasonable certainty? On what basis performance materiality is set and what are the criteria to set it or change it? If you want to change it what things are to be kept in mind? What do you mean by walkthroughs and control testings? What is MRL and why it is used and who takes it? If not received, then what will be the effect on audit opinion in audit report? If debtorsā confirmations are not received, then how would you deal with this kind of situation? Difference between OD and CC. Difference between CIBIL and crisil rating. What are DSCR and its calculation? Ideal Ratio and its relevance. What is important yardstick in assessment of Term Loan? What are IRAC norms? Why are Debtor days and Inventory days calculated? What do you know about SFT transaction? (26AS) How will you analyse the annual report of a company? What ratios you will look for when giving credit? Bottom Up Budgeting Vs Top down Budgeting. How do you ensure completeness and accuracy of financial statements? What all constitutes Financial Statement? What do you understand by FP&A? Why is goodwill impaired? What is the difference between accounts receivable and deferred revenue? A company has had positive EBITDA for the past 10 years, but it recently went bankrupt. How could this happen? Why due diligence is performed on Audited Financials? What are free cash flows of firm? How do you value a Company? Why is income statement not affected by changes in inventory? What is working capital, and which are the different types of working capital? How long usually it take to collect accounts receivable? Differentiate LIFO and FIFO. Which method would company use to buy other company – cash, stock or debt. Assuming all else is equal. Which company would have a higher beta: A manufacturing company or a technology company? What is the limit for tax audit? What products do banks generally offer? Foreign Exchange Reserve? Treatment of Excise Duty paid in Deferred Tax? Treatment of land in Deferred Tax? CUP method? How to check purchase whether real or inflated? What is internal control? Explain Financial Instruments? What are the major audit areas? What is CIF and FOB? How Deferred Tax Liability Works Explain deferred taxes? Tell us something about operating cycle? When should a company charge goodwill to the profit and loss (P&L) statement? If a company’s revenue-generating potential remains strong and there is no indication of deterioration, would goodwill continue to appear on the balance sheet indefinitely? TOL/ TNW Discuss GDP rate? How do you calculate the discount rate? Difference between 194Q v 206 1H? Suppose we build a tower and spent 5 lakhs to construct and its useful life is 10 years, after two years the government ordered to demolish the tower , so we have extracted the tower and placed it at the nearby location , and the expenditure for this relocation would come to 1 lakh. How to record all of these? Which items in financial statements help you judge the financial stability? Difference between 115BAA and BAB? Suppose there is an inventory costing 100, cash discount is 2, will it be added to cost? What is blocked ITC? Why is IBC brought in? Explain interest under 234C Provisions of Sec 80M Explain Vodafone case. Logic behind grandfathering clause. If you have LTCG, can you deduct it with amount invested in PPF u/s 80C? Tell me about a particular concept or section of Income Tax which you appreciate. Why EBITDA multiple better than EBIT multiple? What are controls? How are they different from Procedures? What is Internal Audit? MD of HDFC bank. MD of ICICI bank. Differentiate between Tax planning & Tax evasion? Basics of financial instruments? Component depreciation? Zero rated ITC rules under GST? What is diminishing marginal utility? Explain breakeven point? Discuss about form 3CD? Difference between financial controller and financial analyst? What do you mean by assertions? Current ratio Which is the largest bank in India In terms of business (asked initially into the interview) and also 2nd largest. Adani is with ICICI how will you bring them with us (HDFC)? What is Tangible net worth Which kind of company should keep more equity and which type of company should keep more debt? Why is the cost of equity always higher? Suppose we are having a factory and that factory has no proper road connection to that factory, so we approached to the government requesting them to build the road, the answer was negative and they said we can build a road by our own on their land but there is only one condition that the road will be accessible by public so it will be the public road. How to account for this? Suppose we are getting 200% deduction under income tax on the purchase of machinery that is purchased by us for 100,000 rupees being useful life for 5 years. How will this affect the treatment of deferred tax assets and liability in year 1 to 5? De-recognition of PPE? Explain inflation rate? What is trust? How to evaluate investment in the concept of capital budgeting? What is terminal value and how you calculate the same? When would you not use a DCF in a Valuation? What are the principle for cash flow estimation? What major factors affect the yield on a corporate bond? What is typically higher ā the cost of debt or the cost of equity? Can the IRR be negative? Can IRR be positive and NPV be negative? What is minority interest? What is hedging? How to balance between compliances and growth of the organization? MD of Axis bank. What is the end goal of a given financial restructuring? Why would company go bankrupt in the first place? What you do in Restructuring? What is swap ratio? What is divestiture? What is the difference between accounts payable and accounts receivable? What are accruals? What are prepaid expenses? How much dividend should we declare? Is there an alternative? Provision for section 80JJAA? Difference between depreciation, amortisation and impairment? What is cash flow hedge? Difference between marginal costing, absorption costing and standard costing? Suppose I am not paying any dividend then why is there a cost for cost of equity that is my cost of equity should be zero? Suppose you want to set up a factory which involves an investment of 100 crores and we want you to help us to decide whether we should start this factory or not? Difference between EBITDA and cash flow from operation? What all items are added in inventory cost? Suppose there are two companies, both are loss-making companies: one company took on debt, while the other company hasn’t taken any debt. Why? What is operating segments criteria? Discuss IND AS 36 and 38. What is actuary goodwill, when it arise and what to do in that situation? Discuss section 40A of income tax act? Explain interest under 234B Explain interest under 234A Difference between internal audit and icfr? What are most recent changes in assessment procedure Interpretation of sec 234C What all you know about Sec 43A & 43AA Different b/w professional service and technical services Questions on Set off and Carry Forward in which there is change in ownership At what rate unexplained income (u/s 68 to 69D) taxed as per sec 115BBE. Penalty for misreporting of Income? For how many yearsā unabsorbed depreciation and business losses be carried forward? Tell me some Liquidity and Coverage ratios? Why is Market Cap/EBITDA not a good comparable multiple? What is Stock Split? What is right issue? What is Bonus Issue? How do we calculate Market Cap and Enterprise value (EV) ? Accumulated Depreciation: Definition, Difference and Journal entry of: i. Provision & Contingent Liability What do you mean by Nature, Timing and Extent of Audit? What is sampling? How do you choose samples? Sampling Methods? āAudit samplingā refers to Diff between share and bond Prepaid entry. Employee benefits summary Consolidation eliminations What is financial risk management? What are Swaps? Explain Future and Forward Contract? Difference between call and put options? What is option trading? What is derivative? Ind AS 109 Financial Instruments: Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations: Ind AS 103 Business Combination: Ind AS 102 Share-based Payment: Ind AS 101 First-time Adoption of Indian Accounting Standards: Ind AS 41 Agriculture: Ind AS 38 Intangible Assets: Ind AS 40 Investment Property: Ind AS 36 Impairment of Assets: Ind AS 34 Interim Financial Reporting: Ind AS 33 Earnings per Share: Ind AS 24 Related Party Disclosures: Ind AS 23 Borrowing Cost: Ind AS 8 Accounting Policies, Changes in Accounting Ind AS 7 Statement of Cash Flows: Ind AS 2 Inventories: Ind AS 1 Presentation of Financial Statement: If accounts receivable are going up, what could be the possible driver? How do you forecast Costs? What makes a āgoodā budget? How do you model working capital for a company? What are the features of a good FP&A financial model? Can you walk us through the P&L and Balance sheet of our company? How would you forecast the revenue of our company? Or What are the key drivers or metrics for revenue in our industry? What are the different types of variances How can you improve margins/profits? Give an example. What is Variance analysis and some typical variances Mention the ERP you have used in budgeting and forecasting? How do you make a budget/forecast or what is the basis you consider while making a budget or forecast? What is budgeting and forecasting? How RTGS is different from NEFT? What is the difference between accounts payable and accounts receivable? What are accruals? What are prepaid expenses? What is principles of accounting? What are the accounting concepts? What accounting policies are used for segment reporting? What is impairment of an asset? How is it treated in a accounting? Conventions of accounting? Explain cash equivalents? Explain Effective tax rate? What is STT? What is financial risk management? What is NIFTY and SENSEX? What is difference between EBIT and EBITDA? Can EBIT be greater than EBITDA? What does Inventory Turnover Ratio show? How to consolidate a subsidiary while preparing consolidated financial statement? How to make any reconciliation statements? What is the first step of taking loan? What is currency swap, interest rate swap? Deferred tax liability is current or non current in nature? How control has been defined under Ind As 103. Explain by giving examples? Can LLP be a subsidiary under Ind As? What is the substantial period under Ins As for capitalizing borrowing cost w.r.t qualifying assets? What are the conditions of recognizing revenue over point in time and satisfied over time? What is the treatment of volume based discount as per Ind As 115? Ind As 2 : How Inventory is valued as per Ind AS 2 ? IND AS 16 : What is the concept of Component accounting as per Ind AS 16 ? Why Component Accounting is used ? Ind AS 16 : What is the Deemed cost exemption as per Ind AS 16 ? Ind As 102 ( share based payment ) : how you will record share based payment in books, what other implications of shared based payment would be possible? What is the difference between commercial and investment banking? Which is cheaper debt or equity? What is working capital and what is net working capital? Profitability and valuation ratios? Explain dividend models? If there is the factory and there is the fire in that factory and the machine was rendered un-useable and then we sold the machine for scrap, 100,000 was the original value and 50,000 was the written down value showing on the books and the scrap value is 10,000 and from insurance company we were able to recover 30,000, and we purchase another machine to replace the machine for 100,000. How to record the transaction? Suppose we issued equity to purchase a machinery, how will it be affecting cash flow statement for the entire year? How much dividend should we declare? Is there an alternative? Keys to effective controllership Difference between research and development? Controlling vs accounting Controller vs CFO What does a Financial Controller do? Difference between broad money and narrow money? What is a Controller in Finance? OR What is Finance Controller? What is the substantial period under Ins As for capitalizing borrowing cost w.r.t qualifying assets? What SLR, CRR, REPO, Reverse Repo and rates? IND AS 16 : What is the concept of Component accounting as per Ind AS 16 ? Why Component Accounting is used ? Ind AS 16 : What is the Deemed cost exemption as per Ind AS 16? Ind AS 40 : Definition of Investment property? IND AS 19 (Employee Benefit) ? Ind As 102 ( share based payment ) : how you will record share based payment in books, what other implications of shared based payment would be possible? What is window dressing? How can a company inflate sales? Explain CSR in depth as per companies act. IPO AND BOOK BUILDING PROCESS Effect of change in valuation of inventory from FIFO to weighted average in an inflationary environment? What all items are added in inventory cost? Difference between EBITDA and cash flow from operation? What is related party as per various laws? – Companies Act, Ind AS, GST, Income Tax Suppose the machine is destroyed in fire but the insurance exists, so what should be the treatment for the same? What is segment reporting criteria? How is a firm valued? How to calculate DCF What is payback period and discounted payback period? What is DCF and why do we calculate DCF? How to evaluate investment in the concept of capital budgeting? What is Capital budgeting? Give an example of a capital budgeting decision. Techniques of capital budgeting? What is securitization? WHAT IS THE DIFFERENCE BETWEEN NPV AND XNPV in Excel? What is loan syndication? What is minority interest? Explain NPV and IRR and how do you calculate the same? How will you calculate enterprise value? And how is it different from market capitalisation Slightly positive NPV question What is accretion and dilution? What is book value? What is cost of debt and cost of equity? Provision vs Contingent Liability Tell me some Liquidity and Coverage ratios? Suppose there are two companies, how to compare them based on profitability? Difference between solvency and liquidity? What are some Profitability and valuation ratios Meaning and formula of WACC How to calculate FCFE and FCFF? What is the difference between commercial and investment banking? GST law wrt M&A, Demergers, effect of ITC on such case. How would you advise the client on whether to go in for Litigation or settle the matter? What are some recent GST council decisions? Scope of Litigation Vs Advisory in GST in future Why e-way bill was introduced? How will you check authenticity of a particular e-way bill? What is the validity of a e-way bill? Once a way bill generated can it be revised? How to file appeal before GST appellate tribunal and what is the pre deposit amount? Can a manufacturer of goods avail composition scheme? What are the penal consequences if a person opts for the composition scheme in violation of the conditions? Explain Section 122 (Penalties) Can an ISD distribute the input tax credit to all suppliers? What is the consequence of not filing the return within the prescribed date? What do you understand by ISD? Whether the excess credit distributed could be recovered from ISD by the department? What would be input tax eligibility in cases where there is a change in the constitution of a registered person? 24. Sec 18 – ITC in special Circumstances. What are the types of Refund? Is refund available on Capital goods? What are Rule 42 and 36(4) in GST What do we provide at the time of refund application Difference between SCN and Deficiency Memo Whether it is advisable to file LUT for Zero rated supplies or pay tax on it? What is in inverted duty structure? How is refund taken in case of in inverted duty structure? Discuss about the RCM applicability in case of Govt Services. What are the 3 Schedules of GST? When to charge IGST, SGST, and CGST? Define Deemed Distinct Person What is the impact of scrapping of GST audit on professionals & litigations in future? What is the relevance of time of supply and last dates to issue invoices? What is the difference between zero rated, nil rated, exempt, wholly exempt, non taxable, non-supply? Discuss with the help of examples Identify Place of supply What is GSTR 2A & GSTR 2B? How would you reconcile ITC as per books and returns and last date of availing credit? What are the due dates to file return? Where is the power to levy GST obtained from? Is RCM applicable only on Services? Why there is a mechanism of RCM? What will be the GST Liability when a business is transferred? What about ITC available with you? Few cases on circumstances whether blocked credit rules are not applicable i.e. exceptions to blocked credit What is the procedure for Registration under GST? Cases when compulsory registration is required under GST. Latest amendments in GST relating to E-commerce operator, E-invoices, ITC rulings. What do you know about the GST applicability on notice period recovery? What are the key points to be kept in mind while analysing the financial position of company from its financial statements? What are the Segment criteria as per IND AS? What is the information you required from clients to file Income Tax returns and Form 3CA and 3CB? What are the things to be kept in mind while Auditor’s appointment and Rotation? What are the DTA creation criteria as per Ind AS and how they are different from AS? What are the disclosure requirements of Disclosure note 1 of financial statements? On what basis performance materiality is set and what are the criteria to set it or change it? If you want to change it what things are to be kept in mind? Why Equalization levy Introduced? Any important recent judgements you’ve read about? Recent Amendment in sec 147? What do you know about Faceless assessment? What are most recent changes in assessment procedure? Advance tax provision? Difference between DRP & CIT(A)? What do you know about internal transfer pricing? Why Equalization levy Introduced? What is DTAA? What is Advance Ruling? Difference between POEM and PE. What are the types of PE? Roll back provisions in case of merger and demerger? Difference b/w primary and secondary adjustment? What are the Methods for computing ALP along with examples? Difference between Realized and Unrealized gains? How do you ensure completeness and accuracy of financial statements? What do you mean by debt extinguishment? What do you understand by debt covenant? What is the need for Cash Flow Statements? What are the methods of Cash Flow statement and give at least one example of each activity? Difference between Basic EPS and Diluted EPS? Difference between virtual certainty and reasonable certainty? What do you mean by walkthroughs and control testing? What is MRL and why it is used and who takes it? If not received, then what will be the effect on audit opinion in audit report? If debtorsā confirmations are not received, then how would you deal with this kind of situation? If company is having Going concern issue, then as an auditor what are the requirements to bekept in mind while auditing and what will be the impact on audit opinion in audit report? How will you recognise revenue in case sale is made on FOB basis and in case of CIF basis? Explain. What is Operating/Financial Leverage? All Financial Ratios and profitability ratios. What is negative working capital? How to calculate free cash flows? What is the most important thing you would look for in annual report while performing due diligence? What is Deferred Revenue? What is its importance in Due diligence. How will you find Enterprise Value? What do you mean by EBITDA? What do you understand by Confidential Information Memorandum? What do you think is the most important aspect of due diligence? While performing Due diligence, what all information would you request? Define Target working Capital. What do you understand by QOA (Quality of asset)? What do you understand by QOE (Quality of earnings)? What is the most important deliverable for FDD? Why there is a need for conducting Financial due diligence? What do you understand by FDD? What is the importance of CIBIL & why it is checked? Differentiate between Tax planning & Tax evasion? Explain the concept of Marginal Relief and how it is calculated. Is there a situation in which there is no marginal relief? W.e.f from July 2021 Sec 194Q was introduced where buyer will have to deduct TDS on high value purchase from specific seller. Do you know why such amendment has been made? Discuss regarding the provisions of the section Have you heard of TDS to be deducted Business or Profession on issuing any advantage/perquisite to individual? If yes then why such introduction is made. Discuss on the applicability What ratios you will look for when giving credit? How does the treatment of financing fees differ from transaction fees in an LBO model? What is PIK interest? Name a few warning signs you would watch out for while evaluating a potential investment opportunity in LBO Which credit ratios would you consider when evaluating a borrower’s financial situation? What qualities make a company the perfect candidate for an LBO? What are the main LBO return-generating levers? What are the private equity firms’ investment exit strategies? What is the basic intuition underlying the usage of debt in an LBO? Walk me through the mechanics of building an LBO model for a financial buying. What is a leveraged buyout (LBO) for a PE firm? What is a term sheet? What is equity dilution? What is Pre-money / post- money valuation? What are the various stages of funding? What is the difference between Private Equity and Venture Capital? What is dry powder? Difference between strategic buyers and financial buyers? Who are the financial buyers? Some tips for preparing FP&A Interviews What Types of Businesses Use Financial Modeling? What Is a Hurdle Rate? Why is it important? How will you carry out a risk-based assessment? What do you mean by matching concept? What is the use and purpose of Excel Pivot Table, VLOOKUP, HLOOKUP, SUMIF, and Index Match? What is the key ratio for measuring profitability? If accounts receivable are going up, what could be the possible driver? What is the key ratio to consider while evaluating a new investment? How do MIS Reports Work? Give an example. What is an MIS Report? Mention few types of MIS Reports. How do you forecast Costs? How are the 3 financial statements linked together? How does an inventory write-down affect the Financial statements? What is Financial Modeling for FP&A? What are the different methods of evaluating a project or investment? What is a rolling forecast? How is it different from a traditional budget? Can you walk us through the P&L and Balance sheet of our company? What are the different ways to analyze data? How would you forecast the revenue of our company? Or What are the key drivers or metrics for revenue in our industry? How can you improve profits? Give an example. What are the different types of variance commentaries and explain the ones you have worked on What is Driver-Based Planning? What are the different types of FP&A reports? What is CAGR? Should CAGR be high or low? Variance analysis and Key factor of variance analysis? What is the difference between Quick Ratio and Current Ratio? What is Assets to Turnover Ratio? What is the role of Cash Flow? Distinguish between long term and short-term debt? What have you learnt from Financial Statement Analysis? What is working capital? How will you calculate it? What is Credit Risk? What is Distressed Securities? What is Credit Crunch? What is Loan to Value Ratio? What is net worth of a company? What is Debt to Income Ratio? What is Down Payment? What kinds of credit facilities are available to businesses? Are banks targeting a specific debt-to-capital ratio? How do credit rating companies helps in credit analysis? How would you decide whether to lend to a business? What does “interest coverage ratio” mean? What is DSCR? [Very important] What Is Underwriting? Explaining the Underwriting Process What are the important responsibilities of a Credit Analyst? How is a Credit Analyst different from a Loan Officer? What is credit Analysis? Explain Operational Risk ? Explain Credit Risk ? Explain Foreign Exchange Risk? Explain Interest Rate Risk? Explain Liquidity Risk? Explain Market Risk ? EXPLAIN THE RELATIONSHIP BETWEEN TREASURY AND ALM? EXPLAIN DURATION GAP ANALYSIS MODEL ? LIST THE BASIC ASSET LIABILITY MANAGEMENT (ALM) MODELS? EXPLAIN GAP ANALYSIS MODEL ? DISCUSS THE ROLE AND FUNCTIONS OF ASSET LIABLITY MANAGEMENT COMMITTEE ENUMERATE THE THREE REST PILLARS OF ALM PROCESS AS PER RBI GUIDELINES ? DEFINE ASSET LIABILITY MANAGEMENT (ALM)? WHAT IS THE TREATMENT OF BROKEN PERIOD INTEREST? NON PERFORMING INVESTMENT LIST THE POINTS TO BE NOTED WITH REGARD TO TRANSACTIONS THROUGH SGL ACCOUNT ? EXPLAIN SUBSIDUARY GENERAL LEDGER ACCOUNT OR SGL ? WHAT IS INVESTMENT FLUCTUATION RESERVE ? RBI GUIDELINES FOR VALUATION OF AVAILABLE FOR SALE RBI GUIDELINES FOR VALUATION OF HELD FOR TRADING RBI GUIDELINES FOR VALUATION OF HELD TO MATURITY EXPLAIN THE HEAD AVAILABLE FOR SALE AND HELD FOR TRADING ? EXPLAIN THE HEAD HELD TO MATURITY? EXPLAIN THE CLASSIFICATION OF INVESTMENT PORTFOLIO OF THE BANKS? EXPLAIN THE FUNCTIONS OF BACK OFFICE? EXPLIAN THE SCOPE OF BACK OFFICE? EXPLAIN THE FUNCTIONS OF MID-OFFICE ? EXPLAIN MID OFFICE ? EXPLAIN THE FUNCTIONS OF FRONT-OFFICE ? EXPLAIN THE SCOPE OF FRONT-OFFICE ? WHAT ARE THE FUNCTIONS HANDLED BY A BANK TREASURY? WHAT DO YOU MEAN BY TREASURY IN BANKS? Some Common Treasury Terms – Any of these may be asked in a Treasury Interview Deferred tax asset and liabilities What are the Golden Rules of Accounting? What is CFS? Components of CFS? What is the treatment of depreciation in CFS? Suppose there are two companies- Company A and Company B. What points will you check to ensure consolidation of both companies? Journal Entries and Differences between Bad Debts and Provision for doubtful debts Differences between Contingencies and Reserves Journal Entries and Differences between Provision & Contingent Liability Journal Entries and Differences between Accrued Payable & Accrued Expenses Journal Entries for Dividend What is EOM para? Does mention of this lead to qualification? Types of Audit Report? Difference between General Purpose Audit Report and Special Purpose Audit Report? As an Auditor how will you report fraud? What are the new requirements in CARO 2020 What is sampling? How do you choose samples? Sampling Methods? āAudit samplingā refers to What do you mean by Nature, Timing and Extent of Audit? What are the objectives of the entity behind the imposition of controls? Benefits of Understanding of Internal Control? Limitations of Internal Control? What are the deficiencies of control (Specifically asking about Design Deficiency and Operating Effectiveness)? What are preventive and Detective Controls? Give an example. What is Internal Audit? What are controls? How are they different from Procedures? What are substantive Audit Procedures? Explain in brief what is Audit opinion and types of Audit Opinion? Difference between Vouching and Verification? What is the first step you take when you start Audit of a new client? What is the Risk of Material Misstatements? What would you do when you identify any material misstatement? Difference between Internal Audit and External Audit? What is included in Risk Assessment Procedures? What is IFCR (Internal Financial Control Over Reporting)? What is RAP (Risk Assessment Procedure)? Discuss SA 570 What is the reporting requirement of auditor regarding going concern What is the responsibilities of the auditor regarding going concern? What is Going Concern? What are the indicators of and whether company is going concern or not? What is reverse merger? What is a leveraged buyout (LBO)? What are the reasons for mergers and acquisition? What is horizontal merger and vertical merger? What is conglomerate merger? Distinguish between merger and acquisition? Regulators involved in the process of mergers and amalgamation? Difference between zero and incremental budget? What makes a āgoodā budget? Benefits and drawbacks of merger What are the types of budget What are Audit Assertions/Financial Statements Assertions/Balance sheet and Profit and Loss statement Assertions? What are the audit risk components? What is the difference between ROI vs ROE vs ROCE. We are setting up a factory of scooters, the scooters in this factory are sold for ā¹1 lakh. A Maintenance Contract for five years is also given for ā¹50,000. If the general annual maintenance is paid at the time of purchase of scooters, a sum total of ā¹120,000 is charged from the customer. How to recognize revenue? What is the 5 step model of recognizing Revenue as per IND AS 115? What is systematic risk and unsystematic risk? What is required rate of return? What is risk free rate? What is levered and unlevered beta? Meaning of BETA and can it be negative? What is Beta and Alpha? How to calculate beta? Which is cheaper debt or equity? Explain CAPM? What are the hallmarks of a good FP&A financial model? What is the difference between a private equity and venture capital? What is financial modelling? What credit measures do banks often look at? / What typical credit analysis ratios are there? What is working capital and what is net working capital? What is asset acquisition? Suppose you see goodwill in the balance sheet. What does it mean? Is too much goodwill a bad thing? Difference between operating lease and financial lease? What is goodwill? How to calculate goodwill? What is an Ideal leverage ratio? How do you model working capital for a company? Components of cash flows Statement What is Interest Coverage Ratio Major difference between Ind As 116 vs As 17.( Just mention 2/3 points)? Explain leverage ratio and solvency ratio What are the 4 Cs of the Credit analyst? Major changes in Ind AS 116 What is accumulated depreciation? What is Dividend Discount Model? What are free cash flows? What is sin tax Difference between Depreciation, Depletion and Amortization Mention the ERP you have used in budgeting and forecasting? Explain valuation and its techniques How do you make a budget/forecast or what is the basis you consider while making a budget or forecast? Distinguish between Budgeting and Forecasting?
Also what ratios (liquidity, leverage, etc.) you’ll look into as relationship person and what as credit person while on boarding a new corporate.
Difference between capital expenditure and revenue expenditure along with examples and with case study
Why do you think audit should be conducted? If there was no statutory requirement under companies act, would you still do an audit?
How will you verify cash if its not possible to attend physical verification? Any specific procedures for covid?
Which balance would you like to verify the most while conducting statutory Audit? What is BRS (Bank Reconciliation Statement)? How do you use BRS in audit of cash balance?
There are 50 bank accounts having no balance, 120 bank accounts having very minimum balance then what procedures will you adopt to verify them?
Suppose the company is a big brand in Pen manufacturing industry holding more than 150 bank accounts having balance of 1000cr. What audit procedures will you adopt? Will you verify all the bank accounts or else do some sampling checks? Reason if you verify all the bank accounts?
If a company have two Government companies as clients which are comprising of almost 30% of trade receivables and they are not responding to management at all, how will you respond as an auditor?
If you have debtors balance of Rs 2 crore, and having more than 200 customers then as Statutory Auditor of the Company how will you verify the same?
On what basis performance materiality is set and what are the criteria to set it or change it? If you want to change it what things are to be kept in mind?
What is MRL and why it is used and who takes it? If not received, then what will be the effect on audit opinion in audit report?
A company has had positive EBITDA for the past 10 years, but it recently went bankrupt. How could this happen?
Which method would company use to buy other company – cash, stock or debt. Assuming all else is equal.
When should a company charge goodwill to the profit and loss (P&L) statement? If a company’s revenue-generating potential remains strong and there is no indication of deterioration, would goodwill continue to appear on the balance sheet indefinitely?
Suppose we build a tower and spent 5 lakhs to construct and its useful life is 10 years, after two years the government ordered to demolish the tower , so we have extracted the tower and placed it at the nearby location , and the expenditure for this relocation would come to 1 lakh. How to record all of these?
Which is the largest bank in India In terms of business (asked initially into the interview) and also 2nd largest.
Suppose we are having a factory and that factory has no proper road connection to that factory, so we approached to the government requesting them to build the road, the answer was negative and they said we can build a road by our own on their land but there is only one condition that the road will be accessible by public so it will be the public road. How to account for this?
Suppose we are getting 200% deduction under income tax on the purchase of machinery that is purchased by us for 100,000 rupees being useful life for 5 years. How will this affect the treatment of deferred tax assets and liability in year 1 to 5?
Suppose I am not paying any dividend then why is there a cost for cost of equity that is my cost of equity should be zero?
Suppose you want to set up a factory which involves an investment of 100 crores and we want you to help us to decide whether we should start this factory or not?
Suppose there are two companies, both are loss-making companies: one company took on debt, while the other company hasn’t taken any debt. Why?
How would you forecast the revenue of our company? Or What are the key drivers or metrics for revenue in our industry?
How do you make a budget/forecast or what is the basis you consider while making a budget or forecast?
IND AS 16 : What is the concept of Component accounting as per Ind AS 16 ? Why Component Accounting is used ?
Ind As 102 ( share based payment ) : how you will record share based payment in books, what other implications of shared based payment would be possible?
If there is the factory and there is the fire in that factory and the machine was rendered un-useable and then we sold the machine for scrap, 100,000 was the original value and 50,000 was the written down value showing on the books and the scrap value is 10,000 and from insurance company we were able to recover 30,000, and we purchase another machine to replace the machine for 100,000. How to record the transaction?
Suppose we issued equity to purchase a machinery, how will it be affecting cash flow statement for the entire year?
IND AS 16 : What is the concept of Component accounting as per Ind AS 16 ? Why Component Accounting is used ?
Ind As 102 ( share based payment ) : how you will record share based payment in books, what other implications of shared based payment would be possible?
Effect of change in valuation of inventory from FIFO to weighted average in an inflationary environment?
Suppose the machine is destroyed in fire but the insurance exists, so what should be the treatment for the same?
Why e-way bill was introduced? How will you check authenticity of a particular e-way bill? What is the validity of a e-way bill? Once a way bill generated can it be revised?
Can a manufacturer of goods avail composition scheme? What are the penal consequences if a person opts for the composition scheme in violation of the conditions?
What do you understand by ISD? Whether the excess credit distributed could be recovered from ISD by the department?
What would be input tax eligibility in cases where there is a change in the constitution of a registered person?
What is the difference between zero rated, nil rated, exempt, wholly exempt, non taxable, non-supply? Discuss with the help of examples
What is GSTR 2A & GSTR 2B? How would you reconcile ITC as per books and returns and last date of availing credit?
Few cases on circumstances whether blocked credit rules are not applicable i.e. exceptions to blocked credit
What is the procedure for Registration under GST? Cases when compulsory registration is required under GST.
What are the key points to be kept in mind while analysing the financial position of company from its financial statements?
On what basis performance materiality is set and what are the criteria to set it or change it? If you want to change it what things are to be kept in mind?
What is MRL and why it is used and who takes it? If not received, then what will be the effect on audit opinion in audit report?
If company is having Going concern issue, then as an auditor what are the requirements to bekept in mind while auditing and what will be the impact on audit opinion in audit report?
Explain the concept of Marginal Relief and how it is calculated. Is there a situation in which there is no marginal relief?
W.e.f from July 2021 Sec 194Q was introduced where buyer will have to deduct TDS on high value purchase from specific seller. Do you know why such amendment has been made? Discuss regarding the provisions of the section
Have you heard of TDS to be deducted Business or Profession on issuing any advantage/perquisite to individual? If yes then why such introduction is made. Discuss on the applicability
Name a few warning signs you would watch out for while evaluating a potential investment opportunity in LBO
How would you forecast the revenue of our company? Or What are the key drivers or metrics for revenue in our industry?
Suppose there are two companies- Company A and Company B. What points will you check to ensure consolidation of both companies?
Types of Audit Report? Difference between General Purpose Audit Report and Special Purpose Audit Report?
What are the objectives of the entity behind the imposition of controls? Benefits of Understanding of Internal Control? Limitations of Internal Control?
What are the deficiencies of control (Specifically asking about Design Deficiency and Operating Effectiveness)?
What is the Risk of Material Misstatements? What would you do when you identify any material misstatement?
What are Audit Assertions/Financial Statements Assertions/Balance sheet and Profit and Loss statement Assertions?
We are setting up a factory of scooters, the scooters in this factory are sold for ā¹1 lakh. A Maintenance Contract for five years is also given for ā¹50,000. If the general annual maintenance is paid at the time of purchase of scooters, a sum total of ā¹120,000 is charged from the customer. How to recognize revenue?
How do you make a budget/forecast or what is the basis you consider while making a budget or forecast?
