10+ Accounts & Audit Assistant Interview Questions and Answers

GST is Goods and Services Tax, Tally is an accounting software, and Levy Accounting Standards refer to specific regulations for accounting practices.

• GST is a value-added tax levied on most goods and services sold for domestic consumption.

• Tally is a popular accounting software used for recording financial transactions and generating reports.

• Levy Accounting Standards are specific guidelines and regulations that companies must follow when preparing financial statements.

• Examples ...read more

The closing balance of petty cash is considered an asset, representing cash available for small expenses.

• Petty cash is used for minor expenses like office supplies or employee reimbursements.

• The closing balance reflects the remaining cash after expenses have been deducted.

• For example, if the initial petty cash was $500 and $300 was spent, the closing balance is $200.

• It is recorded as an asset on the balance sheet, indicating liquidity.

GST stands for Goods and Services Tax, a value-added tax levied on most goods and services sold for domestic consumption.

• GST is a consumption tax that is imposed on the supply of goods and services in India.

• It is a comprehensive indirect tax on the manufacture, sale, and consumption of goods and services.

• GST has replaced multiple indirect taxes like VAT, service tax, excise duty, etc.

• It has helped in simplifying the tax structure and reducing tax evasion.

• GST has different sla...read more

Concurrent Sales Audit is a process of auditing sales transactions in real-time to ensure accuracy and prevent fraud.

• Concurrent Sales Audit involves monitoring sales transactions as they occur to detect any discrepancies or irregularities.

• It helps in identifying potential errors, fraud, or theft in sales transactions before they escalate.

• This process can involve using software systems to track sales data in real-time and generate reports for analysis.

• Concurrent Sales Audit is...read more

A cost sheet is a document that shows the detailed breakdown of all costs incurred in the production of a product or service.

• Includes direct costs (e.g. raw materials, labor) and indirect costs (e.g. overhead)

• Helps in determining the total cost per unit of production

• Used for cost control and decision-making

• Example: A manufacturing company preparing a cost sheet to analyze the cost of producing a new product

The three golden rules of accounting are: Debit the receiver, Credit the giver; Debit what comes in, Credit what goes out; Debit expenses and losses, Credit income and gains.

• Debit the receiver, Credit the giver: When an asset or expense increases, it is debited. When a liability, equity, or revenue increases, it is credited.

• Debit what comes in, Credit what goes out: Debit the account that receives something and credit the account that gives something.

• Debit expenses and losses...read more

Reverse charge is a tax mechanism where the recipient of goods/services is liable to pay tax instead of the supplier.

• In reverse charge, the buyer accounts for the tax instead of the seller.

• Commonly used in cross-border transactions to simplify tax collection.

• Example: A business in Country A receives services from a supplier in Country B; the business pays the tax.

• Applicable in certain sectors like construction, where the recipient is responsible for VAT.

• Helps prevent tax evas...read more

The golden rule of accounts states that debit what comes in and credit what goes out.

• Debit what comes in and credit what goes out

• Assets = Liabilities + Equity

• Double-entry accounting system

• Maintains the balance sheet equation

Scope of audit refers to the extent and boundaries of an audit process, including the areas and activities that will be examined.

• Scope of audit determines the objectives, resources, and timeline of the audit.

• It includes identifying the specific accounts, transactions, and processes to be reviewed.

• Scope may vary based on the size and complexity of the organization being audited.

• Auditors must ensure that the scope is sufficient to provide a reasonable assurance of detecting mat...read more