Preparing for Statutory Audit Interview

Big 4 Statutory Audit Interview Questions

The First question you will be asked in any interview is "Tell me about yourself" or "Run me through your CV" and your response to this question may decide what all questions you may be asked during the whole interview process. 

Well Guess what 😀 we have prepared a Extensive list of questions. Read carefully as it may decide your Interview's fate 🤓

After the basic Introduction, Interviewer generally Try to get familier of our articleship workings . 

So they may start with areas we have worked and here's the time we should demonstrate and highlight those Financial Statement items on which we have the most comfort

Questions will be ticking around them only.

Apart from that here are some questions which are asked to test technical knowledge of Audit

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1. The concept of Materiality. How will you decide Materiality? 

2. How overall materiality is different from Performance materiality?

3. Fundamental assumptions of Accounting

4. Going Concern (Case study based question)

5. Components of CFS

6. Analytical Procedures performed during the audit

7. Concept of Diluted EPS

8. Audit Opinion (Case study based question, Specially see EOM, KAM etc.)

9. Subsequent Events.

10. Audit Sampling. How to determine Sample size?

11. Audit Assertions (List of assertions related to Financial Statement Line Items)

12. Audit Risk? Now here he may ask for any process and its RCM (For Eg. Production and purchase process, its risks and controls aligned for those risks)

13. Audit Procedures for certain Important Areas. (Most asked question for this role)

How did you performed below in your articleship?

•  Audit cash and bank balance
• Audit of fixed asset.
• Audit of Revenue/Inventory.
• Audit of Trade Receivables
• Audit of Trade Payables
• Audit of Payroll expense

14. Difference between new and old tax regime? Amendments in TDS rates?

15. What is the difference between CIF and FOB transactions? how will you audit it?

14. Ind AS being the basis on which most of the Financials you will be auditing becomes one of the important question for this role. 

• Applicability of Ind AS, Especially Banks and NBFCs, First time recognition etc
• Deferred taxes
• Scope of Ind AS 115 
• Five step Model of Ind AS 115
• Finance lease as per Ind AS 116 (Accounting of Finance lease)
• Exemptions in Lease
• Financial Asset/Financial Liability as per Ind AS 109 (How it is measured)
• Capitalization of interest on loan taken for construction of fixed asset
• Amortization Vs Impairment
• Indicators of Impairment 

15. Recent Amendments in Financial Reporting including those of Schedule III 

16. CARO 2020 recent amendments

 

17. Internal Controls Testing(with example) Including IFC reporting and its applicability? (Most Favorite question of interviewers)

18. Why statutory audit?

19. Why this organisation?

20. Comfortable working in deadline?

21. Have you been part of Limited Review of any company? If Yes what are the requirements of publishing the results? How are they different from Audited FS?

Bonus Tips

✨Read SAs 200 240 265 500 501 560 570 700 701 705 706 before interview ?

👉Highlight Audit learnings you have gained during Articleship tenure?

Ending Questions (Timepass questions)

✨Major Achievements, Strength and weakness etc

👉Highlight Audit learnings you have gained during Articleship tenure?

Thanks for reading it. 

Hope you like it and best wishes for your Interview, See you soon ✨