Find Interview Questions for Epr

Right Answer:
A banker’s cheque is issued by a bank on its own funds and is guaranteed by the bank, while a regular cheque is written by an individual or business and is drawn on their personal account, which may not have sufficient funds.

Right Answer:
To verify if TDS is deducted from salaries, check the salary slips for the TDS amount, review the Form 16 issued by the employer, and compare the TDS deducted with the applicable tax slabs based on the employee's income. Additionally, you can cross-check the TDS payment details in the employer's tax records or the TRACES website.

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Cost accounting is a method of accounting that focuses on capturing a company's total costs of production by assessing the variable and fixed costs associated with producing goods or services. It helps businesses understand their costs, set budgets, and make informed financial decisions.

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Source documents in accounting are original records that provide evidence of a financial transaction. Examples include invoices, receipts, bank statements, and contracts.

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TDS receivables can be shown under Advance Income Tax A/c until the end of the financial year in which the TDS was deducted.

Right Answer:
The woman is the man's mother.

Right Answer:
The cistern will be full in 14 minutes.

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The average of the first 10 odd numbers is 10.

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Factoring is a financial transaction where a business sells its accounts receivable (invoices) to a third party (the factor) at a discount in exchange for immediate cash.

The procedure for factoring typically involves the following steps:
1. The business identifies its accounts receivable to be factored.
2. The business applies to a factoring company and submits the invoices.
3. The factoring company evaluates the creditworthiness of the business's customers.
4. Upon approval, the factoring company advances a percentage of the invoice value (usually 70-90%).
5. The factoring company collects the payment from the customers when the invoices are due.
6. Once the customers pay, the factoring company releases the remaining balance to the business, minus a fee for the service.

Right Answer:
The sum of their ages 5 years hence will be 70.

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Internal audits are important to an organization because they help ensure compliance with laws and regulations, assess the effectiveness of internal controls, identify areas for improvement, enhance operational efficiency, provide assurance to management and stakeholders, and help mitigate risks.

Right Answer:
To conduct a company audit, I follow these steps:

1. **Planning**: Understand the company's operations and identify areas to audit.
2. **Risk Assessment**: Evaluate risks related to financial reporting and compliance.
3. **Gathering Evidence**: Collect data through document reviews, interviews, and observations.
4. **Testing Controls**: Check the effectiveness of internal controls.
5. **Substantive Testing**: Verify account balances and transactions for accuracy.
6. **Analysis**: Analyze findings and compare them against standards.
7. **Reporting**: Prepare an audit report summarizing findings and recommendations.
8. **Follow-up**: Discuss results with management and ensure corrective actions are taken.

Right Answer:
1. Planning: Define the audit scope, objectives, and timeline.
2. Risk Assessment: Identify and evaluate risks related to financial statements.
3. Internal Control Evaluation: Assess the effectiveness of internal controls.
4. Fieldwork: Gather evidence through testing and observation.
5. Documentation: Record findings and evidence collected during the audit.
6. Reporting: Prepare the audit report summarizing findings and recommendations.
7. Follow-up: Review the implementation of recommendations and corrective actions.

Right Answer:
**Advantages of Internal Audit:**
1. Improves risk management and control processes.
2. Enhances operational efficiency and effectiveness.
3. Provides assurance on compliance with laws and regulations.
4. Identifies areas for cost savings and process improvements.
5. Strengthens governance and accountability within the organization.

**Disadvantages of Internal Audit:**
1. Can be perceived as intrusive by employees.
2. May lead to resistance or lack of cooperation from staff.
3. Requires resources, including time and personnel, which can be costly.
4. Potential for bias if internal auditors are too close to the operations.
5. Findings may not always lead to immediate action or improvement.

Right Answer:
Some techniques used during an audit include:

1. **Sampling** - Selecting a representative subset of transactions.
2. **Observation** - Watching processes and controls in action.
3. **Inquiry** - Asking questions to management and staff.
4. **Recalculation** - Verifying numerical accuracy of calculations.
5. **Analytical Procedures** - Comparing financial data and ratios.
6. **Document Inspection** - Reviewing records and supporting documents.

Right Answer:
The Revenue Recognition Principle impacts profit calculations by ensuring that revenue is recognized when it is earned, regardless of when cash is received. This means profits reflect the actual performance of a business during a specific period, aligning income with the expenses incurred to generate that income.

Right Answer:
The Consistency Principle ensures that a company uses the same accounting methods over time, making financial statements comparable across periods. Comparability allows users to compare financial statements of different companies or periods, ensuring that similar transactions are reported in a consistent manner. Together, they enhance the reliability and accuracy of financial reporting.

Right Answer:
Generally Accepted Accounting Principles (GAAP) are the accounting standards used in the United States, while International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) are used in many other countries. The relationship between them is that both aim to provide a framework for financial reporting, but they differ in specific rules and guidelines. Efforts are ongoing to converge GAAP and IFRS to create a more unified global accounting standard.

Right Answer:
The Conservatism Principle in accounting states that when faced with uncertainty, accountants should choose methods that minimize the overstatement of income or assets and the understatement of liabilities. This means recognizing expenses and liabilities as soon as possible, but revenues only when they are assured.

Right Answer:
The Going Concern Principle assumes that a business will continue to operate for the foreseeable future, which affects financial reporting by requiring assets and liabilities to be valued based on their ongoing use rather than liquidation values. This principle ensures that financial statements reflect the company's ability to continue its operations, impacting how revenues and expenses are recognized.