Kpmg Resource Centre Interview Questions and Answers

TOD in audit stands for Test of Details, which involves examining individual transactions or account balances to ensure accuracy and completeness.

• TOD is a detailed examination of specific transactions or account balances in an audit.

• It focuses on verifying the accuracy and completeness of financial information.

• Examples of TOD include testing the existence of inventory by physically counting items, or confirming ac...read more

Toe in audit refers to the practice of comparing the financial statements of a company with industry standards to identify any discrepancies.

• Toe in audit helps in identifying any potential errors or fraud in the financial statements.

• It involves comparing the financial ratios, performance metrics, and key indicators of a company with industry benchmarks.

• By conducting toe in audit, auditors can assess the financial ...read more

Audit is a systematic examination of an organization's financial records to ensure accuracy and compliance with regulations.

• Audit is important for ensuring the accuracy and reliability of financial information.

• It helps in detecting and preventing fraud or errors in financial statements.

• Audits provide assurance to stakeholders such as investors, creditors, and regulators.

• It helps in improving internal controls and ...read more

Internal audit is conducted by internal employees to assess and improve internal controls, while external audit is conducted by independent third parties to provide an opinion on financial statements.

• Internal audit is performed by employees within the organization, while external audit is conducted by independent auditors outside the organization.

• Internal audit focuses on evaluating and improving internal controls...read more

Materiality is calculated based on the size and nature of the misstatement in relation to the financial statements as a whole.

• Materiality is a concept used in auditing to determine the significance of a misstatement in financial statements.

• It is calculated by considering the size and nature of the misstatement in relation to the financial statements as a whole.

• Materiality is subjective and depends on the judgment ...read more

Prudence concept is an accounting principle that requires caution and carefulness in financial reporting.

• Prudence concept suggests that a company should not overstate its assets or income, and should not understate its liabilities or expenses.

• It is also known as conservatism principle.

• This principle helps in avoiding over-optimism and overconfidence in financial reporting.

• For example, if a company is uncertain abo...read more