Audit Interview Questions

Contact the board of directors or the audit committee. They should ensure the independence of internal auditing.

Decommission Liability is costs that a company expects to incur in the future when the plant is shut down.

Vouching is the process of inspecting the books of account to ensure that the correct financial position of the entity

Under Sec 94-I we can deduct TDS

One auditing firm can audit other auditing firm.

Vouching is the process of checking for the existence an example for this is checking from the final record to the supporting document.

"In accounting language all P&L items vouched."
vouching means to check whether recorded transaction have any voucher or not.
voucher means supportive evidence with the transaction.

Internal audit is the audit system set by the company for audit of the company purpose.

Internal audit (IU) is not mandatory except condition stated by companies act 1956.

IU may be chartered accountant or may not be and having freedom setup by company only.

Internal audit is said to be an independent appraisal activity with in an organisation for review
of
1) ACCOUNTING
2) FINANCIAL
3) OTHER OPERATION
as a basis of service to the organisation


-SAFEGUARDING OF ASSET

INTERNAL AUDIT INCLUDE
OPERATIONAL AUDIT & MGMT AUDIT

you have to pay income tax. if the renting of machinery is ur business then it is chargeable under PGBP(sec.28) of Indian income tax,1961. And it is in nature of service ...and renting of movable g...

Both are applicable if you are working in state of Karnataka.Hiring the machinery to be given to other party first of all we add 4% vat after that we will charge service tax on it.If karnataka is not ur state then to take suggestion from ur consultant.

Tangible Assets are those assets which we can see or touch like fixed asset ,machinery,etc.
intangible Assets are those which we can't be seen like goodwill of the company.

Tangible assets - which is visible, like machine & apply IAS 16

Intengible assets - which is invisible, like goodwill, brand name & apply IAS 38.

Statutory audit is always an external audit as the statutory auditor is appointed under the provision of section 226 by company shareholders and as per the professional ethics internal auditor cannot ...

Trail balance may tally when there is an error of omission. ( for eg. if we made payment of rs. 1000/- for office expenses but both entries are omitted then trial bal will be tally )

Yes,the trial balance matches even when there are errors.For example when there is a compensating error the trial balance still tallies.

Minimum attendence of members must be in meeting at time.
Min. attendence is according to company's article of association (AOA) its vary company to company.

Yes, any company can charge depreciation as expense in financial statement on second handed asset, but it must be fixed asset.
Thank you !

Good will always calculated by externally...
Internally calculated good will is unaccepted according to IFRS 3

Goodwill is recognised based upon the total value of the partnership implied by the new partner's contribution.

Inventory count - physically and through ledger (Purchase and Sale).

Check maintain stock register and valuation of stock

These are tools that enable Management conduct more targeted and cost-effective assessment of objectives and risks. Such as common organisational objectives, risk events that can affective the achievement of the objectives and typical controls to mmitigate the risk events.

Company Audit Report Order

It is requested by Audit commitee or the Companys; shareholders.
The main objective of modern Audit is to help the MGMT to acheive its various objectives by bringing a systimatic approaches and evaluating the risks.

To make sure companies and individuals are in compliance.

External Audit is defined as an an audit taken on financial statements to state the financial statements are represented fairly or not.
While the Internal Audit is to audit the process and system and evaluate the control over the company

an internal audit deals with compliance testing of established policies and is carried out  in house for the firm to assist in highlighting weaknesses of controls while the external audit de...

The audit firm in one country is audited by global QPR team (Quality Periodic Assessment) it is kind of quality assessmnet team. The audit is conducting at least every 3 years by the international team of the same firm.