30+ Article Trainee Interview Questions and Answers

To evaluate cost of unsold stock item as per AS2 after 6 months.

• Determine the cost of production or acquisition of the stock item.

• Check if there is any decline in the net realizable value of the item.

• If there is a decline, reduce the cost of the item by the amount of decline.

• If there is no decline, keep the cost of the item as it is.

• Record the evaluation in the books of accounts.

CARO 2020 has additional reporting requirements and emphasis on internal control and risk management compared to CARO 2016.

• CARO 2020 has added reporting requirements such as reporting on fraud, default in repayment of loans, and utilization of Corporate Social Responsibility funds.

• CARO 2020 emphasizes on internal control and risk management, requiring auditors to report on adequacy and effectiveness of internal financial controls.

• Procedure to check sales has been added as a n...read more

Different Income Tax Return forms cater to various taxpayer categories and income sources in India.

• ITR 1 (Sahaj): For individuals with income up to ₹50 lakh from salary, one house property, and other sources like interest.

• ITR 2: For individuals and Hindu Undivided Families (HUFs) with income from salary, house property, capital gains, and foreign income.

• ITR 3: For individuals and HUFs who have income from a business or profession, including partnership firms.

• Example of ITR 1:...read more

The current unemployment rate in India is around 6.9%.

• As of 2021, the estimated number of unemployed people in India is around 40 million.

• The COVID-19 pandemic has significantly impacted the job market in India, leading to a rise in unemployment.

• The unemployment rate varies across different states in India, with some states having higher rates than others.

• The government has implemented various schemes and initiatives to address the issue of unemployment in the country.

BRS is also done for reconciliation, compliance, decision-making, and improving financial processes.

• Reconciliation of financial statements with bank statements or vendor records

• Ensuring compliance with accounting standards and regulations

• Providing accurate financial information for decision-making

• Identifying inefficiencies in financial processes and suggesting improvements

Audit is a process of examining financial records to ensure accuracy and compliance, privilege of private company refers to limited liability of shareholders, entry of sale of machine involves recording the transaction in the accounting system, computation of basic income involves calculating the total income before deductions.

• Audit involves examining financial records to ensure accuracy and compliance with regulations.

• Privilege of private company refers to limited liability ...read more

AI work involves using algorithms to simulate human intelligence and decision-making. It has advantages and disadvantages.

• Advantages of AI include increased efficiency, accuracy, and productivity in various industries such as healthcare, finance, and manufacturing.

• Disadvantages of AI include job displacement, bias in decision-making, and potential misuse of AI technology.

• AI can be used to analyze medical data and assist in diagnosis and treatment, making it beneficial in the ...read more

Verification of expenses involves reviewing supporting documents and ensuring accuracy and compliance.

• Reviewing receipts, invoices, and bills to ensure they are legitimate and accurate

• Checking for proper authorization and approval of expenses

• Comparing expenses to budgeted amounts or industry standards

• Ensuring expenses are recorded correctly in the accounting system

• Performing random spot checks to detect any potential fraud or errors

AS2 is a standard for secure data transmission between businesses, with audit considerations including data integrity, authentication, and non-repudiation.

• AS2 stands for Applicability Statement 2

• It is a protocol used for secure and reliable data transmission over the internet

• Audit considerations include ensuring data integrity during transmission

• Authentication of the sender and receiver to prevent unauthorized access

• Non-repudiation to ensure that the sender cannot deny sendin...read more

AI has advantages like efficiency and accuracy, but also disadvantages like job displacement and lack of empathy.

• Advantages of AI include increased efficiency and accuracy in tasks such as data analysis and decision-making.

• AI can also improve safety in industries like transportation and manufacturing.

• Disadvantages of AI include job displacement as machines replace human workers in certain industries.

• AI also lacks empathy and the ability to understand complex human emotions an...read more

Revenue recognition for goods involves recognizing revenue when goods are delivered or services are rendered.

• Revenue is recognized when the risks and rewards of ownership have been transferred to the buyer.

• Revenue is recognized at the fair value of the consideration received or receivable.

• Revenue recognition criteria include the amount of revenue can be measured reliably, it is probable that economic benefits will flow to the entity, and the costs incurred or to be incurred c...read more

I chose BDO for its commitment to excellence and innovation in the accounting field, aligning with my career aspirations.

• BDO's global presence offers diverse opportunities for professional growth.

• The firm's emphasis on teamwork and collaboration resonates with my values.

• I admire BDO's commitment to community service and corporate responsibility.

• The chance to work with a variety of clients across industries excites me.

• BDO's focus on continuous learning and development aligns w...read more

CARO 2020 includes reporting requirements for auditors of companies.

• CARO 2020 requires auditors to report on internal financial controls and their adequacy.

• It mandates reporting on compliance with provisions of applicable laws and regulations.

• Auditors must report on the maintenance of proper records and timely preparation of financial statements.

• CARO 2020 also requires reporting on the existence of any fraud by or against the company.

• The provisions of CARO 2020 aim to enhance...read more

The company has made significant improvements in various areas, enhancing efficiency and employee satisfaction.

• Implementation of new technology has streamlined operations, reducing processing time by 30%.

• Employee feedback mechanisms have been established, leading to a 20% increase in job satisfaction scores.

• Training programs have been introduced, resulting in a 15% improvement in team productivity.

• Sustainability initiatives have reduced waste by 25%, contributing to a greener...read more

Salary disparities in large companies can stem from various factors, including budget constraints and market competition.

• Large companies often have extensive operational costs, which can limit salary budgets.

• Market competition can lead to lower salaries if companies prioritize cost-cutting.

• For example, tech giants may offer lower salaries for entry-level positions due to high applicant volumes.

• Employee benefits and perks can sometimes compensate for lower salaries, such as fl...read more

AS 9 outlines the principles for revenue recognition in accounting, ensuring accurate financial reporting.

• Revenue should be recognized when it is earned and realizable.

• For goods sold, revenue is recognized at the point of sale.

• For services rendered, revenue is recognized when the service is completed.

• Example: A software company recognizes revenue when the software is delivered and accepted by the customer.

• For long-term contracts, revenue can be recognized based on the percent...read more

Exemptions reduce the taxable income directly, while deductions reduce the taxable income indirectly.

• Exemptions are a fixed amount that can be deducted from the total income before calculating tax liability.

• Deductions are expenses or investments that can be subtracted from the total income to arrive at taxable income.

• Exemptions are available to all taxpayers, while deductions may have specific criteria or limits.

• Examples of exemptions include standard deduction, HRA exemption...read more

The rate of income tax for individuals varies based on their income level.

• The tax rate ranges from 0% to 30% depending on the income level

• Individuals with income up to Rs. 2.5 lakhs are exempt from income tax

• Those earning between Rs. 2.5 lakhs to Rs. 5 lakhs are taxed at 5%

• Income between Rs. 5 lakhs to Rs. 10 lakhs is taxed at 20%

• Income above Rs. 10 lakhs is taxed at 30%

• Additional surcharge may apply for high-income earners

I have a strong interest in this domain due to its dynamic nature and potential for growth.

• Passion for the subject matter

• Opportunities for career advancement

• Challenging and constantly evolving environment

Standards on auditing are guidelines for auditors to follow while conducting audits.

• Standards on auditing ensure that audits are conducted in a consistent and reliable manner.

• There are three types of standards on auditing: general standards, fieldwork standards, and reporting standards.

• Examples of general standards include independence, due care, and professional skepticism.

• Examples of fieldwork standards include planning and supervision, internal control evaluation, and audi...read more

Audit is a systematic examination of financial records, statements, or operations to ensure accuracy and compliance with laws and regulations.

• Audit involves reviewing financial records, statements, or operations of a company or organization.

• The purpose of an audit is to ensure accuracy, reliability, and compliance with laws and regulations.

• Auditors examine evidence to form an opinion on the fairness of the financial statements.

• Types of audits include financial audit, operatio...read more

PPE is protective equipment worn to minimize exposure to hazards, while stock refers to goods kept for sale or use in business operations.

• PPE stands for Personal Protective Equipment and includes items like gloves, masks, and goggles to protect against physical, electrical, chemical, and other hazards.

• Stock refers to goods or merchandise kept on hand for sale or use in business operations.

• PPE is used to protect individuals from potential risks in various environments, while s...read more

The new tax regime in India offers lower tax rates but without deductions and exemptions.

• New tax regime introduced in Budget 2020 offers lower tax rates for individuals who forego deductions and exemptions

• Taxpayers can choose between the old regime with deductions and exemptions or the new regime with lower tax rates

• New tax rates are optional and individuals need to calculate which regime is more beneficial for them

• Example: Under the new regime, income up to Rs 2.5 lakh is ta...read more

Depreciation entry with dates

• Depreciation is a non-cash expense that reduces the value of an asset over time

• Depreciation entry includes debiting Depreciation Expense and crediting Accumulated Depreciation

• Depreciation is recorded on a regular basis, usually monthly or annually

• Depreciation entry should include the date of the transaction

FS stands for Financial Services.

• FS refers to the industry that provides financial services such as banking, insurance, investment, and wealth management.

• Financial Services companies help individuals and businesses manage their money, investments, and risks.

• Examples of FS companies include banks like JPMorgan Chase, insurance companies like Allstate, and investment firms like BlackRock.

I have a diverse background in communications, marketing, and content creation, with a passion for storytelling and audience engagement.

• Graduated with a Bachelor's degree in Communications from XYZ University, where I honed my writing and analytical skills.

• Interned at ABC Company, where I assisted in creating marketing content that increased social media engagement by 30%.

• Worked as a freelance writer, producing articles for various online platforms, focusing on topics like te...read more