PwC Associate L2 Interview Questions and Answers

P2P process involves risks such as fraud, errors, and non-compliance. Controls like segregation of duties, approvals, and audits can mitigate them.

• P2P process involves procurement, receiving, and payment

• Risks include fraud, errors, and non-compliance with policies and regulations

• Controls include segregation of duties, approvals, and audits

• Segregation of duties ensures that no single person has complete control ove...read more

Cash balance can be verified by reconciling the bank statement with the company's cash account.

• Compare the ending balance on the bank statement with the ending balance on the company's cash account

• Check for any outstanding checks or deposits in transit

• Verify that all transactions have been recorded accurately

• Perform regular audits to ensure accuracy

A deferred tax asset is an accounting concept that represents a future tax benefit that a company can claim.

• It arises when a company has overpaid taxes or has carried forward tax losses from previous years.

• It can be used to offset future tax liabilities and reduce the company's tax bill.

• Deferred tax assets are recorded on the balance sheet as an asset.

• Examples include tax credits, tax loss carryforwards, and accel...read more

To audit bank reco, one should verify the accuracy of bank statements and compare them with the company's records.

• Verify the accuracy of bank statements

• Compare bank statements with the company's records

• Check for any discrepancies and investigate them

• Ensure all transactions are recorded accurately

• Verify that all bank accounts are reconciled on a regular basis

• Ensure that all outstanding checks and deposits are accou...read more

Audit assertions are the claims made by management regarding the accuracy and completeness of financial statements.

• Audit assertions are used by auditors to assess the risk of material misstatement in financial statements.

• There are six types of audit assertions: existence, completeness, accuracy, valuation, rights and obligations, and presentation and disclosure.

• For example, existence assertion refers to whether th...read more

Stat audit is mandatory and conducted by external auditors while internal audit is voluntary and conducted by internal auditors.

• Stat audit is conducted to ensure compliance with legal and regulatory requirements.

• Internal audit is conducted to evaluate and improve the effectiveness of risk management, control, and governance processes.

• Stat audit is mandatory and conducted by external auditors while internal audit i...read more

Derivatives are financial instruments whose value is derived from an underlying asset. Auditing is the process of examining financial records to ensure accuracy and compliance. Internal control refers to the policies and procedures implemented by a company to safeguard assets and ensure accurate financial reporting. Materiality refers to the significance of a financial transaction or event.

• Derivatives are contract...read more

Answering questions on revenue recognition, AR checking, and audit opinion.

• For returnable policy goods, revenue is recognized only when the customer confirms acceptance of the goods.

• AR checking involves verifying the accuracy of the accounts receivable balance by reviewing invoices, payments, and credit memos.

• At year end, AR checking involves confirming outstanding balances with customers and assessing the collect...read more