READING MATERIAL FOR INTERVIEW

STATUTORY AUDIT
 Overview of Statutory Audit

Meaning
A statutory audit, also known as a financial audit, is one of the main types of audit to be done
as per the statutes applicable to the entity. Its primary purpose is to gather all relevant
information so that the auditor can give his opinion on the true and fair view of the company’s
financial position as on the balance sheet date.

Purpose
The purpose of the statutory audit is that the auditor gives his view independently without
being influenced in any manner.It helps the stakeholders to rely on financial statements.
Stakeholders, other than shareholders, also benefit from this audit. They can take their call
based on the accounts as they are audited and authentic.

Advantages of Statutory Audit

1. It increases the authenticity and credibility of financial statements as an independent party,
i.e., the auditor is verifying the financial statements.

2. It confirms that management has taken due care while delivering their responsibilities.

3. It also states compliance with the non-statutory requirements like corporate governance etc.

4. The auditor also comments on the strength of the organization’s internal control and internal
checks among the departments or segments. He also suggests the area where internal control is
weak and prone to risk. It helps the company mitigate the risk and results in the improvement
of the company’s performance

5. On producing financial statements audited by an independent auditor, loans are easy, as the
audited statements are more reliable and authentic. The financial statement of the small
company for whom audit might not be applicable gets more value if audited. With the help of

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the audited financial statements, it becomes easier for companies to get banking loans and
other facilities.

Disadvantages/Limitations
1. The cost associated with an audit can be very high. But an audit firm engaged in looking
after the day-to-day work, including accounts preparation, etc., will charge a relatively much
less amount to conduct the audit compared with the firm not engaged.

2. The employees might get disrupted for performing their regular work to answer the
day-to-day query of the auditor or while providing the auditor with any reports or data required
of them. It might result in stretching the employees’ work beyond office hours and may
sometimes cause distress among the employees.

3. The financial statements include judgemental as well as subjective matters. Judgemental

issues may vary with persons. Sometimes personal business is also included.

4. There are inherent limitations of audits like it has to finish in due time, internal control
within the organization, limited power of the auditor, etc. One has to understand that auditors
are watchdogs and not bloodhounds. Their reporting is based on the sample data and not the
total data. Moreover, frauds are planned, so it will be more challenging to find.

5. There are many areas in which auditors have no other option than to take representation
from management. It is a danger if management itself is involved in fraud. In that case, they
will give the manipulated image.

6. The auditor does not assess and review 100 % of transactions. Auditor merely expresses his
opinion on the financial statements and data provided to him and, at no point, gives total
assurance.

7. An auditor comments on the going concern of the organization, but nowhere assures its
future viability. Stakeholders should not vest their money by only seeing that the organization
has data audited

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 Statutory Audit in India
The provisions under Sec. 139 - Sec. 149 of the Companies Act 2013 regulate the procedure of
the statutory audit and the conduct of the auditors, states that:

● A statutory auditor has the power to go through and analyse all of the sensitive data of
the company, such as financial books, records, and information. The auditor also has
the right to seek any further information that he thinks is necessary for the purpose
● It is his responsibility to write an auditor’s report. In this, he should state if the financial
statements of the company give a true and fair description of their financial status and
affairs.
● If he raises a quality issue, such as the statements are not true and fair, he must clearly
state his reasons for the same.
● If the auditor reveals any fraud during his audit, he must communicate it to the Central
Government authorities.
● While auditing and presenting the Audit Report, he must comprehend the auditing
standards as per the ICAI guidelines.

Statutory Auditor - Roles and Responsibilities:

A statutory auditor in a firm typically has the following roles & responsibilities:

● Attending meeting with auditees to develop an understanding of business processes and

environment
● Planning, execution and finalization of statutory audits of body corporate entities, listed
entities, Unlisted companies, Banks etc independently;
● Conducting statutory audit as per relevant IND AS, IFRS US, GAAP etc., and present
audit results in an objective and unbiased manner.
● Maintain appropriate audit documentation that entails audit issues reflecting relevant
facts that lead to logical conclusions.
● Drafting and finalization of reports in compliance with Companies reports order and
IND AS.
● Independent review of auditee’s financial statements and compliance with various
statutory regulations, legislations, policies, procedures etc
● Perform process walk-throughs, assess risks, and perform control effectiveness testing;

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 ● Perform independent research and analysis of information aimed at arriving robust
conclusions or recommendations
● Discussion of queries(audit issues, significant risks and loss exposures etc.,) with
management and timely resolution of the same.
● Ensure compliance with engagement plans, internal quality, risk management
procedures.
● Lead audit engagement on his/her own from planning till closure with direct reporting
to the partners
● Build and manage a team of audit professionals and work effectively in teams.
● Contribution to knowledge sharing efforts by mentoring team members and juniors in
various aspects related to audit and technical issues with regard to IND AS, Companies
act, Compliances and guidelines under other acts.
● Establish and maintain interpersonal relationships with business partners, relevant
stakeholders, and identify emerging risks as part of ongoing business monitoring
activities.
● Bring efficiency in audit approach, methodology and develop sound value based
solutions and apply technical knowledge in delivery of complex solutions to clients

Statutory Auditor Profile - Expectations from hiring firms:

Technical Expectations:
● Sound knowledge of Indian Accounting and Assurance standards including Ind AS,
IFRS or knowledge of GAAP and international review standard is an added advantage.
● Good understanding of Companies Act 2013, Direct Taxes, GST and labout laws.
● Proven ability in professional judgement dealing with disclosure of information in
financial reporting
● Strong skills in MS Excel, Word, Powerpoint, Tally etc.,
● Sound knowledge and understanding of audit methodologies and tools that support
audit processes and /or orientation to risk and controls,
● Strong data analytical skills with attention to detail and risk management skills

Softskill Expectations:
● Should have the ability to work under stringent deadlines and demanding client
conditions.
● Strong verbal, written and interpersonal communication skills
● Strong time management skills
● Stong organisational, multitasking and prioritising skills
● Ability to work effectively in a team environment and across all organisational levels,
with flexibility, collaboration and adaptation

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 ● Strong problem solving attitude
● Good leadership skills
● Ability to perform tasks exercising independent judgement with minimal supervision
● Ability and zeal to build domain knowledge and overall business acumen

Interview process
The typical interview process of large professional organizations consists of following rounds
of interview:

Preliminary test :

This is the first and foremost round of interview and in this stage the candidate is usually tested
with questions on general knowledge, basics of mathematics, logical reasoning, english and
basic questions related to your profile.

Group Discussion:

This is the second round where the candidatess are tested for communication skills by making
them express their views and perspectives on various general, social, business topics in
groups. A good amount of updated knowledge in current affairs is needed to crack this round.
Some companies would not have this GD round and directly forward the candidates to HR
Round.

HR Round :

This round basically checks the soft skills such as confidence, communication skills, attitude,
etc. A professional resume with a good understanding of the company, its vision, mission,
values, etc., would help the candidate cakewalk this round. General questions about the
candidate, questions like why should we hire you, why did you choose this company, strengths,
and weaknesses are normally asked in this round.

Technical/ Partner Round :

This is the final and purely technical round. The candidates should prepare as per their job
profile all the technical questions and keep themselves updated about the changes in their
respective domains. The candidates are normally tested for their confidence level and technical
knowledge in this round.

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 Interview Questions

Technical Questions

1) What are Audit Assertions/Financial Statements Assertions/Balance sheet and

Profit and Loss statement Assertions? How is it classified?

ASSERTION: It refers to the representations by management, explicit or otherwise, that are

embodied in the financial statements, as used by the auditor to consider the different types of
potential misstatements that may occur.

The auditor needs to draw an audit programme to verify the assertions made by the
management by obtaining sufficient and appropriate audit evidence for each of the claims
made on Account Balances, Class of Transactions and Related Disclosures.

ASSERTIONS MAY BE BROADLY CLASSIFIED INTO THE FOLLOWING TYPES:

In preparing financial statements, Company’s management makes implicit or explicit claims

(i.e. assertions) regarding: (Memory Technique- CEAVCOP)

A. Completeness;
B. Existence/ occurrence;
C. Accuracy
D. Valuation/ measurement;
E. Cut-off;
F. Rights and Obligations; and
G. Presentation and disclosure

of Assets, Liabilities, Equity, Income, Expenses and Disclosures in accordance with the
applicable accounting standards.

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2) Explain Income Statement Assertions.

INCOME STATEMENT ASSERTIONS

⮚ Occurrence- Transactions recognized in the financial statements have occurred and relate to
the entity.

⮚ Completeness- All transactions that were supposed to be recorded have been recognized in
the financial statements. Transactions have not been omitted.

⮚ Cut-off- Whether all income and expenses are reported in the correct accounting period.
Cut-off is a separate assertion because the substantive procedures to verify it are typically
different from those applied to the other components of completeness.

⮚ Measurement-Transactions have been recorded accurately at their appropriate amounts in

the financial statements. There have been no errors while preparing documents or in posting
transactions to the ledger. The figures and explanations are not misstated.

⮚ Presentation and Disclosure- Transactions have been classified and presented fairly in the
financial statements. Transactions and Events are appropriately segregated or disaggregated.
Presentation and disclosure assertions are considered during the course of the audit to
determine that disclosures are complete and accurate. The disclosures that are most susceptible
to material misstatement are those that require significant judgment and qualitative
assessments. Audit teams assess the completeness and accuracy of disclosures by determining
that the disclosures provide information in a manner that does not materially omit, distort or
mislead the user. The description and disclosure of transactions are relevant and easy to
understand.

3) Explain Balance Sheet Assertions.

BALANCE SHEET ASSERTIONS

⮚ Existence- Assets, liabilities and equity balances exist as at the period end.

⮚ Completeness- All assets, liabilities and equity balances that were supposed to be recorded
have been recognized in the financial statements.

⮚ Cut-off -Whether all assets and liabilities are reported in the appropriate period.

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⮚ Valuation- Assets, liabilities and equity balances have been valued Appropriately i.e the
amounts at which they are recorded are appropriate. There has been no overstatement or
understatement.

⮚ Rights & Obligations- Entity has the right to assets i.e. (whether the entity has ownership
and legal title to assets) and the liabilities recognized in the financial statements represent all
the entity’s obligations to repayment as at a given date.

⮚ Presentation and Disclosure- Whether particular items in the financial statements are
properly classified, described and disclosed. Presentation and disclosure assertions are
considered during the course of the audit to determine that disclosures are complete and
accurate. The disclosures that are most susceptible to material misstatement are those that
require significant judgment and qualitative assessments. Audit teams assess the completeness
and accuracy of disclosures by determining that the disclosures provide information in a
manner that does not materially omit, distort or mislead the user. The balances have been
appropriately segregated or disaggregated. The related disclosures are understandable in
accordance with the applicable Financial Reporting framework.

4) What is RAP (Risk Assessment Procedure)?

Risk assessment procedures refer to the audit procedures performed to obtain an understanding
of the entity and its environment, including the entity’s internal control, to identify and assess
the risks of material misstatement, whether due to fraud or error, at the financial statement and
assertion levels.

5) What is included in Risk Assessment Procedures?

The risk assessment procedures shall include the following:

(a) Inquiries of management and of others within the entity who in the auditor’s judgment may
have information that is likely to assist in identifying risks of material misstatement due to
fraud or error.

(b) Analytical procedures.

(c) Observation and inspection

6) What is Audit Risk? Types of Audit Risk?

Audit risk means the risk that the auditor might give an inappropriate audit opinion when the
financial statements are materially misstated.

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Audit risk is a function of the risks of material misstatement and detection risk.

Audit Risk = Inherent Risk x Control Risk x Detection Risk

Risk of material misstatement may be defined as the risk that the financial statements are
materially misstated prior to audit. This consists of two components- Inherent risk and Control
risk. Inherent risk is the susceptibility of an assertion to a misstatement before consideration of
any related controls.

Control risk is the risk that a misstatement that could occur in an assertion which will not be
prevented, or detected and corrected, on a timely basis by the entity’s internal control.

Detection risk refers to the risk that the procedures performed by the auditor to reduce audit
risk to an acceptably low level will not detect a misstatement that exists and that could be
material, either individually or when aggregated with other misstatements.

7) What is IFCR (Internal Financial Control Over Reporting)?

Section 143(3)(i) of the Act requires the auditors’ report to state whether the company has
adequate internal financial controls system in place and the operating effectiveness of such
controls. The auditor’s objective in an audit of internal financial controls over financial
reporting is, “to express an opinion on the effectiveness of the company’s internal financial
controls over financial reporting.” It is carried out along with an audit of the financial
statements.

Internal financial controls are “the policies and procedures adopted by the company for
ensuring the orderly and efficient conduct of its business, including adherence to
company’s policies, the safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting records, and the timely
preparation of reliable financial information.”

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8) Difference between Internal Audit and External Audit?

9) What do you understand by Materiality? How and on what basis an auditor

assesses materiality? Components of Materiality? Why Performance Materiality is
set? What do you understand by clearly Trivial Threshold? (Mandatory ques -Go
through entire SA-320)

Materiality in audit means information included in the financial statements which can
influence the economic decision of users of financial statements. Economic decisions means
financial decisions.

Performance materiality - The amount or amounts set by the auditor at less than materiality
for the financial statements as a whole to reduce to an appropriately low level the probability
that the aggregate of uncorrected and undetected misstatements exceed materiality for the
financial statements as a whole. If applicable, performance materiality also refers to the amount
or amounts set by the auditor at less than the materiality level or levels for particular classes of
transactions, account balances or disclosures.

Materiality may need to be revised as a result of a change in circumstances that occurred

during the audit. For example: - A decision to dispose of a major part of the entity’s business,

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new information, or a change in the auditor’s understanding of the entity and its operations as a
result of performing further audit procedures.

Factors/ aspects that determine Materiality – there are many factors which influence
materiality level. The important ones being –

a) Requirement of Law - In many countries law defines materiality level. In India Revised
Schedule VI sets materiality level at 1% of the revenue from operations or 100,000 Rs
whichever is higher. This is the materiality level we use in accounting for disclosing material
transactions separately. We can consider this when we want to set materiality levels in audit.

b) Size & nature of the business - Larger the size of the company higher the materiality level
and vice-versa.

c) In many cases we come across misstatements which are insignificant in value - but they
are quality misstatements. For example, Accounting Standards are not followed or Revised
Schedule VI is not followed etc. → Such misstatement, though small in size, becomes material
and needs to be considered by the auditor. This holds particularly true in case of India because
Compliance with Accounting Standards and Revised Schedule VI is compulsory and if it is not
complied with, auditor has to report the same.

d) Complexity of transactions – increases the materiality level e) In case of statutory dues

even one rupee will be material (irrespective of size of the company) – For example law
requires certain dues to be collected (like indirect taxes) and deposited in banks on behalf of
the Government. In such cases even small amounts become material. Make sure that the dues
are properly collected and deposited by the auditor.

f) There are some misstatements which are not material individually but they are
material when aggregated. Therefore, the auditor should consider materiality both
individually and in aggregate (total). For Example, a misstatement of say Rs 100,000 may not
be material for a big company individually. But if the same misstatement is repeated say 50
times the amount comes to Rs 5,000,000 which may be material. Therefore, auditor should
consider materiality both individually and in aggregate.

g) Inherent and controls risk – Inherent risk refers to the risk that there may be some
misstatements in financial statements. Whereas control risks refers to the risk of misstatements
even when the internal controls are implemented by the management. It means that due to
these risks there is a possibility of misstatements. Auditor should consider such risks when he
wants to set materiality levels in an audit.

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Benchmarks in Determining Materiality for the Financial Statements as a Whole
Determining materiality involves the exercise of professional judgment. A percentage is often
applied to a chosen benchmark as a starting point in determining materiality for the financial
statements as a whole.

Factors that may affect the identification of an appropriate benchmark include the
following:

● The elements of the financial statements. Example:- Assets, liabilities, equity,

revenue, expenses;
● Whether there are items on which the attention of the users of the particular entity’s
financial statements tends to be focused. Example:- For the purpose of evaluating
financial performance users may tend to focus on profit, revenue or net assets;
● The nature of the entity, where the entity is in its life cycle, and the industry and
economic environment in which it operates;
● The entity’s ownership structure and the way it is financed. Example: - If an entity is
financed solely by debt rather than equity, users may put more emphasis on assets,
and claims on them, than on the entity’s earnings;
● The relative volatility of the benchmark.

10) What is the Risk of Material Misstatements? What would you do when you
identify any material misstatement?

Risk of material misstatement: It may be defined as the risk that the financial statements are
materially misstated prior to audit. This consists of two components described as follows at the
assertion level:

● Inherent risk—The susceptibility of an assertion to a misstatement that could be

material before consideration of any related controls.
● Control risk—The risk that a misstatement that could occur in an assertion that could
be material will not be prevented or detected and corrected on a timely basis by the
entity’s internal control.

During identification of misstatement, less evidence would be required in case assertions that
have a lower risk of material misstatement. But on the other hand, if assertions have a higher
risk of material misstatement, more evidence would be required.

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11) What is the first step you take when you start Audit of a new client?

First step in the audit process is planning. Planning an audit involves:

(a) Establishing the overall audit strategy

(b) Developing an audit plan.

The auditor should plan his work to enable him to conduct an effective audit in an efficient and
timely manner. Plans should be based on knowledge of the client’s business.

Plans should be made to cover, among other things:

❖ acquiring knowledge of the client’s accounting systems, policies and internal control
procedures;
❖ establishing the expected degree of reliance to be placed on internal control;
❖ determining and programming the nature, timing, and extent of the audit procedures to be
performed; and
❖ coordinating the work to be performed. Plans should be further developed and revised as
necessary during the course of the audit.

12) What are substantive Audit Procedures?

Substantive procedure may be defined as an audit procedure designed to detect material

misstatements at the assertion level. Substantive procedures comprise:

(i) Tests of details (of classes of transactions, account balances, and disclosures), and
(ii) Substantive analytical procedures.

Analytical procedure is the process of analyzing plausible relationships among data including
both financial and non-financial data. Likewise, substantive analytical procedures are the audit
procedures that auditors perform to obtain evidence about the reasonableness of amounts
shown in the financial statements by using such plausible relationships among data.

13) Explain in brief what is Audit opinion and types of Audit Opinion?

An auditor's opinion is a certification that accompanies financial statements. It is based on an

audit of the procedures and records used to produce the statements and delivers an opinion as
to whether material misstatements exist in the financial statements.

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The auditor shall express an unmodified opinion when the auditor concludes that the financial
statements are prepared, in all material respects, in accordance with the applicable financial
reporting framework.

A. Qualified Opinion: The auditor shall express a qualified opinion when:

(a) The auditor, having obtained sufficient appropriate audit evidence, concludes that
misstatements, individually or in the aggregate, are material, but not pervasive, to the financial
statements; or

(b) The auditor is unable to obtain sufficient appropriate audit evidence on which to base the
opinion, but the auditor concludes that the possible effects on the financial statements of
undetected misstatements, if any, could be material but not pervasive.

B. Adverse Opinion: The auditor shall express an adverse opinion when the auditor, having
obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in
the aggregate, are both material and pervasive to the financial statements.

C. Disclaimer of Opinion: The auditor shall disclaim an opinion when the auditor is unable to
obtain sufficient appropriate audit evidence on which to base the opinion, and the auditor
concludes that the possible effects on the financial statements of undetected misstatements, if
any, could be both material and pervasive. The auditor shall disclaim an opinion when, in
extremely rare circumstances involving multiple uncertainties, the auditor concludes that,
notwithstanding having obtained sufficient appropriate audit evidence regarding each of the
individual uncertainties, it is not possible to form an opinion on the financial statements due to
the potential interaction of the uncertainties and their possible cumulative effect on the
financial statements

14) What is Internal Audit?

Internal Audit means “An independent management function, which involves a continuous and
critical appraisal of the functioning of an entity with a view to suggest improvements thereto
and add value to and strengthen the overall governance mechanism of the entity, including the
entity’s strategic risk management and internal control system”.

15) What are controls? How are they different from Procedures?

Procedures are the systems that are set in place to meet the established standards of the
organization.

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1. Processes are the actions performed by accounting personnel that are not controls. Controls,
on the other hand, are the actions that ensure safety and accuracy.
2. A process is what is being done while controls ensure accuracy and lessen fraud.

16) What are the objectives of the entity behind the imposition of controls?
Benefits of Understanding of Internal Control? Limitations of Internal Control?

Internal Controls Are the policies and procedures that a company implements to ensure
efficiency of business operations, reliability of financial reporting, compliance with laws &
regulations, safeguarding of assets and prevention of frauds.

Objectives of Internal Control

A. Transactions are executed in accordance with management's general or specific

authorization;

B. all transactions are promptly recorded in the correct amount in the appropriate accounts and
in the accounting period in which executed so as to permit preparation of financial information
within a framework of recognized accounting policies and practices and relevant statutory
requirements, if any, and to maintain accountability for assets;

C. assets are safeguarded from unauthorised access, use or disposition; and

D. The recorded assets are compared with the existing assets at reasonable intervals and
appropriate action is taken with regard to any differences.

Benefits of Understanding of Internal Control

An understanding of internal control assists the auditor in:

i. identifying types of potential misstatements;

ii.identifying factors that affect the risks of material misstatement, and iii. designing the nature,
timing, and extent of further audit procedures.

Limitations of Internal Control:

1. Internal control can provide only reasonable assurance: Internal control, no matter how
effective, can provide an entity with only reasonable assurance about achieving the entity’s
financial reporting objectives. The likelihood of their achievement is affected by inherent
limitations of internal control.

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2. Human judgment in decision-making: Realities that human judgment in decision-making
can be faulty and that breakdowns in internal control can occur because of human error.
Example There may be an error in the design of, or in the change to, a control.

3. Lack of understanding the purpose: Equally, the operation of a control may not be
effective, such as where information produced for the purposes of internal control (for
example, an exception report) is not effectively used because the individual responsible for
reviewing the information does not understand its purpose or fails to take appropriate action.

4. Collusion among People: Additionally, controls can be circumvented by the collusion of

two or more people or inappropriate management override of internal control. For example,
management may enter into side agreements with customers that alter the terms and conditions
of the entity’s standard sales contracts, which may result in improper revenue recognition.
Also, edit checks in a software program that are designed to identify and report transactions
that exceed specified credit limits may be overridden or disabled.

5. Judgements by Management: Further, in designing and implementing controls,

management may make judgments on the nature and extent of the controls it chooses to
implement, and the nature and extent of the risks it chooses to assume.

6. Limitations in case of Small Entities: Smaller entities often have fewer employees due to
which segregation of duties is not practicable. However, in a small owner-managed entity, the
owner-manager may be able to exercise more effective oversight than in a larger entity. This
oversight may compensate for the generally more limited opportunities for segregation of
duties. On the other hand, the owner-manager may be more able to override controls because
the system of internal control is less structured. This is taken into account by the auditor when
identifying the risks of material misstatement due to fraud.

17) What are the deficiencies of control (Specifically asking about Design
Deficiency and Operating Effectiveness)?

A deficiency in internal control over financial reporting exists when the design or operation of
a control does not allow management or employees, in the normal course of performing their
assigned functions, to prevent or detect misstatements on a timely basis.

A deficiency in design exists when

(a) a control necessary to meet the control objective is missing or
(b) an existing control is not properly designed so that, even if the control operates as designed,
the control objective would not be met.

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A deficiency in operation exists when a properly designed control does not operate as
designed, or when the person performing the control does not possess the necessary authority
or competence to perform the control effectively.

18) What are preventive, Detective Control? Give an example.

Preventive controls include security mechanisms, tools, or practices that can mitigate undesired
actions. An example of preventive control is firewalls, anti virus software etc.

Detective controls are designed to find and verify whether the preventive or corrective controls
are working. Detective controls are designed to detect errors. Examples include audit trails,
logs and CCTVs.

19) What is CARO? No. of clauses in CARO 20? New Additional clauses in CARO
20? Fixed Asset clause in CARO 20?

To enhance the scope of the audit, the MCA in consultation with the National Financial
Reporting Authority (NFRA) released the CARO 2020. It lists out the subject matters on which
the applicable companies are mandatorily required to report. CARO 2020 is applicable for all
statutory audits commencing on or after 1 April 2021 corresponding to the financial year
2020-21.

CARO 2020 shall apply to every company including a foreign company, except:

1. a banking company defined under Section 5(c) of Banking Regulation Act, 1949

2. an insurance company defined under Section 2 of the Insurance Act, 1938

3. company licensed to operate under section 8 of the Companies Act

4. One Person Company defined under section 2(62) of the Companies Act, 2013 and a small
company as defined under section 2(85) of the Companies Act, 2013

5. a private limited company, not being a subsidiary or holding company of a public company,
having paid up capital and reserves and surplus <= Rs 1 crore (on balance sheet date) & total
borrowings from any bank or FI <= Rs 1 crore (at any point during the FY) & total revenue as
disclosed in Schedule III to the Companies Act, 2013 (including revenue from discontinuing
operations) <= Rs 10 crore (as per financial statements.

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CARO 2020 comprises 21 reporting clauses in Paragraph 3.

Details of tangible and intangible assets

1. Whether the records maintained by the company display the complete particulars on the
details, quantity and situation of tangible and intangible assets.

2. Whether the management has carried out physical verification of the assets at different
intervals reasonable with the size of the company.

3. Whether the material discrepancies, if any, noticed on physical verification have been
accounted for in the books of accounts.

4. Whether the title deeds pertaining to the immovable properties (except properties which
are leased by the company with duly executed lease agreements in the company’s
favour) disclosed in the financial statements are held in the name of the company.

5. If the title deeds are not held in the name of the company, the below details should be
provided:

6. Whether a revaluation has been done by the company of its property, plant and
equipment (including the right of use assets) or intangible assets or both during the year
and, if so, whether the revaluation is based on the valuation by a Registered Valuer.

7. In case of a change in values upon revaluation, specify the amount of change, if the
change is 10% or more in the aggregate of the net carrying value of each class of
property, plant and equipment or intangible assets.

8. Whether any proceedings have been initiated or are pending against the company for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988) and rules made thereunder. If yes, whether the company has appropriately
disclosed the details in its financial statements.

New clauses Inserted

Clause viii – Reporting on Unrecorded Income: requires auditors to report whether

previously unrecorded income has been surrendered or disclosed as income during the year in
the tax assessments under the Income Tax Act, 1961, has been properly recorded in the books
during the year.

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Clause xiv – Reporting on Internal Audit A new clause has been inserted in CARO 2020.
Clause 14 requires auditors to report whether:-

1. The company has an internal audit system which is commensurable with the size and nature
of its business.

2. the reports of the Internal Auditors for the period under audit were considered by the
statutory auditor

Clause xvii – Reporting on Cash Losses A new clause has been inserted in CARO 2020.
Clause xvii requires auditors to report whether the company has incurred cash losses in the
financial year and in the immediately preceding financial year and if so, the amount of cash
losses is to be disclosed.

Clause xviii – Reporting on Auditor’s Resignation A new clause has been inserted in CARO
2020, which requires reporting on:-

1. resignation of the statutory auditors during the year, if any

2. whether the auditor has taken into consideration the issues, objections or concerns raised by
the outgoing auditors

Clause xix – Reporting on Financial Position A new clause has been inserted in CARO
2020, which requires the auditor to report on whether material uncertainty exists or not.
Disclosure is required that the auditor is of the opinion that the company is capable of meeting
its liabilities existing on the balance sheet date as and when they fall due within a period of one
year from the balance sheet date.
Clause xx – Reporting on CSR Compliance A new clause has been inserted in CARO 2020,
which requires the auditor to report on whether unspent CSR amount has been transferred to:-

1. a fund as specified in Schedule VII (where no specific project has been carried out or
assigned) or,

2. a special designated bank account (related to any ongoing project).

20) What is sampling? How do you choose samples? Sampling Methods?

‘Audit sampling’ refers to the application of audit procedures to less than 100% of items
within a population relevant under the audit, such that all sampling units (i.e. all the items in
the population) have an equal chance of selection. This is to ensure that the items selected

CA Monk 19
represent the entire population which enables the auditor to draw conclusions and express his
opinion based on a predetermined objective.

Sampling Methods:

Probability Sampling Non-probability Sampling

i) Simple Random i) Convenience

ii) Systematic ii) Quota
iii) Stratified iii) Judgement
iv) Cluster iv) Snowball

21) What do you mean by Nature, Timing and Extent of Audit?

Nature covers what audit procedures will be performed for the company. Changing the nature
of an auditor’s substantive testing requires the auditors to take an effective approach to testing.

Timing indicates when the audit procedures will be performed. Changing the timing of
auditor’s substantive testing ensures reliable evidence such as interim, or year end.

Extent is how the audit will be performed on a test basis of large or small sample sizes to
gather evidence.

22) What is EOM para? Does mention of this lead to qualification?

As per SA 706 EOM is a paragraph included in auditors report that relates to the matters
appropriately presented or disclosed in the financial statement and in auditors’ judgement is of
importance for users of financial statements. Examples where it is necessary to include EOM
paragraph- An uncertainty relating to the future outcome of exceptional litigation or regulatory
action, a significant subsequent event that occurs between the date of the financial statements
and the date of the auditor’s report.

An emphasis of matter paragraph does not modify the audit opinion. Such a paragraph is also
not a substitute for expressing a qualified or adverse opinion, or for disclaiming an opinion,
where they are appropriate. It is instead used to draw the reader's attention to a specific matter
relating to the audit.

CA Monk 20
23) Types of Audit Report? Difference between General Purpose Audit Report and
Special Purpose Audit Report?

Types of Audit Reports:

1. Unqualified Audit Report: The auditor issues an unqualified audit report to financial
statements when auditors found no material misstatements after their testing. Therefore, this
report contains an unqualified opinion from an independent auditor.

2. Qualified Audit Report: The qualified Audit report is the reported issue by auditors to the
financial statements that found material misstatements. But those material misstatements are
not pervasive.

3. Adverse Audit Report: An adverse Audit Report is a type of audit report issued to the
financial statements when auditors found material misstatements in the financial statements.
The misstatements found here are different from the material misstatements found in qualified
audit reports. They are materially misstated for themselves and affect others’ accounts and
items in the whole financial statements. These are called pervasive.

4. Disclaimer Audit Report: The disclaimer audit report is the report that issues the financial
statements where there is matter to auditor’s independence and those matters cause auditors not
be able to obtain sufficient audit evidence to support their opinion.

Special Purpose Report: A special-purpose financial report is intended for presentation to a

limited group of users or for a specific purpose. For example, special-purpose financial
statements are prepared for tax reporting, bank reporting, and industry-specific reporting. Most
SME’s (Small to Medium Enterprises) and notfor-profit entities will produce a simple profit
and loss and balance sheet, in any format that the business requires or desires them to be in by
following specific guidelines or reporting requirements established by the directors, owners or
members.

General Purpose Report: General purpose financial reports provide financial information
about the reporting entity that is useful to existing and potential investors, lenders and other
creditors in making decisions about providing resources to the entity. General-purpose
financial statements are issued throughout the year and includes a balance sheet, income
statement, statement of owner’s equity/retained earnings, and statement of cash flows.

CA Monk 21
24) As an Auditor how will you report fraud?

Reporting of fraud by an Auditor:

❖ Reporting to CG: As per Section 143 of Companies Act, 2013 if auditor has reason to
believe that offence of fraud involves an amount Rs 1 Cr or more by Companies employee, it is
to be reported to the CG.
❖ Reporting to Audit Committee: In case of fraud for less than Rs 1 Crore, auditor shall
report to the audit committee.

❖ Disclosure in Boards Report: The auditor is required to report details of frauds in Boards
Reports.

❖ Auditor is required to state the reason for qualification or negative audit report.

25) What is the use and purpose of Excel Pivot Table, VLOOKUP, HLOOKUP?

Pivot Table is an interactive way to quickly summarize large amounts of data. It is used to
summarize, sort, reorganise, and group. It allows us to extract the significance from a large,
detailed data set.

VLOOKUP: It is a function that makes Excel search for a certain value in a column, to return
a value from a different column in the same row.

HLOOKUP: Stands for Horizontal Lookup. It is a function that makes Excel search for a
certain value in a row, in order to return a value from a different row in the same column.

CA Monk 22
26) Definition, Difference and Journal entry of the following:

❖ Provision & Contingent Liability

Provision
Contingent Liability

Provision liability reduces an asset’s value Contingent liability is a potential liability

because of a present obligation arising out of a that can occur at a future date due to
past event events beyond a company’s control

The event which can result in a provisional The event which can result in a
liability may or may not occur. contingent liability will occur.

The estimated amount of the provisional The estimated amount of the contingent
liability is not certain liability is largely certain

Any increase or decrease in provision liability The Profit and Loss Account does not
gets recorded in the Profit and Loss Account record a contingent liability

JE for Provision:

Expense A/c…. Dr
To Provision A/c…. Cr

JE for Contingent Liability:

Cash A/c…. Dr
To Accrued Liability A/c…Cr

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 ❖ Accrued Payable & Accrued Expenses

Accrued Expenses Accounts Payables

Accrued Expenses is a term used in Accounts Payables is the amount that the
accounting where the expense is recorded in company has to pay in the short term to the
the books before it is paid for. creditors.

Expenses are periodic and are listed on the These expenses are part of everyday process
balance sheet as Accrued Expenses as current and are listed as Accounts Payables as
liability in balance sheet current liability.

Rent, wages, bank loan interest where Accounts payable are due to the
payments are made monthly creditors.

Interest Expense…Dr Purchase… Dr

To Interest Payable…..Cr To Accounts Payables..Cr

❖ Prepaid Expenses

Prepaid expenses are future expenses that are paid in advance. On the balance sheet, prepaid
expenses are first recorded as an asset. After the benefits of the assets are realized over time,
the amount is then recorded as an expense.

JE

Prepaid Rent….. Dr
To Cash…… Cr

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 ❖ Dividend

Dividends are payments a company makes to share profits with its stockholders. They're paid
on a regular basis, and they are one of the ways investors earn a return from investing in stock.

On Declaration :

Retained
Earnings…Dr

To Dividend payable… Cr

On Payment:

Dividend Payable…Dr

To Cash…Cr

❖ Bad Debts and Provision for doubtful debts

Bad Debts
Provision For Doubtful Debts

Bad Debts amount to that portion of the Provision for bad debts is the estimated
debts which are either irrecoverable or percentage of total doubtful debt that needs to
whose probability of recovery is very be written off during the next year..
rare.

Bad Debt Account (Debit), Debtor's The debtor's account, whose debt is
Account (Credit) recognized as doubtful, is never closed.

CA Monk 25
 ❖ Return on capital and Return of capital

Return on Capital Return of Capital

Return of capital refers to a company

Return on capital (ROC) is a ratio that
returning original investment funds back to
measures how well a company turns
the investor or by liquidating assets.
capital.

❖ Contingencies and Reserves

Reserves
Contingencies

A contingency reserve is retained earnings
that have been set aside to guard against
possible future losses. A contingency
reserve is needed in situations where a
business occasionally suffers significant
losses, and needs reserves to offset those
losses.
Reserves are part of profits or gain that has
been allotted for a specific purpose. Reserves
are usually set up to buy fixed assets, pay
bonuses, pay an expected legal settlement, pay
for repairs & maintenance and pay off debt.

CA Monk 26
 ❖ Deferred tax asset and liabilities

Deferred tax asset Deferred tax liabilities

When profits as per tax laws is more than profits When profits as per tax laws is less than
as per books of accounts, A deferred tax asset is profits as per books of accounts, Deferred
required to be created. tax liability is required to be created.

Deferred Tax Asset journal entry Deferred Tax liability journal entry

Deferred Tax Asset A/C……. Dr Profit & Loss A/C ……. Dr

To Profit & Loss A/C………. To DTL A/C……

It is shown under the head of Non- Current It is shown under the head of Non-
Assets in the balance sheet. Current Liability in the balance sheet.

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 ❖ Depreciation and Impairment

Depreciation Impairment

Depreciation is the method of distributing the Impairment is a sudden and

cost of the asset over its useful life. substantial decline in the fair or
recoverable value of assets.

Depreciation arises due to normal wear and tear Impairment of an asset can occur for
or the use of the asset for day-to-day operations various reasons, such as a disaster, legal,
or obsolescence. economic or operational reasons.

Depreciation comes as an expense. Impairment is taken as a loss on the

asset.

On Tangible assets only. Types of assets: On fixed, current &

intangible assets.

❖ Accumulated Depreciation:

Accumulated depreciation is the total amount of the depreciation expenditure allocated to a

particular asset since the asset was used. It is a contra asset account, i.e. a negative asset
account that offsets the balance in the asset account with which it is usually linked. The
accumulated balance of depreciation increases over time, adding the amount of the
depreciation expense recorded during the current period

27) What is schedule III?

Schedule III provides the format of financial statements of companies complying with the
Accounting Standards and Ind AS.

CA Monk 28
28) Accounting Concepts such as Going Concern concept and Prudence Concept.

Going Concern Concept: Going concern concept is one of the accounting principles that
states that a business entity will continue running its operations in the foreseeable future and
will not be liquidated or forced to discontinue operations for any reason.

Prudence Concept: Prudence concept is a concept that has been put in place to ensure that
the person who is making the financial statements makes sure that the assets and income are
not overstated to make sure the company is not overvalued.

29) What are the Golden Rules of Accounting? What are different types of Accounts
(Real, Nominal and Personal).

Golden Rules of Accounting:

1 Debit The Receiver, Credit The Giver

2 Debit What Comes In, Credit What Goes Out

3 Debit All Expenses And Losses, Credit All Incomes And Gains

Different types of Accounts:

❖ Personal: Personal Accounts are the ones that are related with individuals, companies,
firms, group of associations etc. Eg Veer’s A/c, Kapoor Pvt Ltd, Prepaid Expenses A/c etc.

❖ Real: Real Accounts are the ones that are related with properties, assets or possessions.
Real Accounts can be of two types: Tangible Real Accounts and Intangible Real accounts. Eg
Machinery A/c, trademarks, goodwill etc.

❖ Nominal: Nominal Accounts relate to income, expenses, losses or gains. These include
Wages A/c, Salary A/c, Rent A/c etc.

30) What is Cash Flow Statement? Components of CFS? What is the treatment of
depreciation in CFS?

A cash flow statement (CFS) is a financial statement that summarizes the amount of cash and
cash equivalents entering and leaving a company.

The CFS complements the balance sheet and the income statement.

CA Monk 29
The main components of the CFS are cash from three areas: operating activities, investing
activities, and financing activities.

The two methods of calculating cash flow are the direct method and the indirect
method.

Depreciation is a non-cash expense, and needs to be added back to the cash flow statement in
the operating activities section, alongside other expenses such as amortization and depletion.

31) Suppose there are two companies- Company A and Company. What points will
you check to ensure consolidation of both companies?

For Consolidation of company A and Company B we should check the relationship among the
companies such as:-

a. If company A holds more than 50% shares in company B, then Holding

subsidiary relationship is established.

B. If company A holds more than 20% shares in company B, then company A is an

Associate of company B via substantial Interest.

c. If there is any Joint venture contract between company A and Company B, then a JV
relationship is created.

CA Monk 30
32) Difference between Vouching and Verification?

33) What is BRS (Bank Reconciliation Statement)? How do you use BRS in audit
of cash balance?

A bank reconciliation is the process of matching the balances in an entity's accounting records
for a cash account to the corresponding information on a bank statement. The goal of this
process is to ascertain the differences between the two, and to book changes to the accounting
records as appropriate. The information on the bank statement is the bank's record of all
transactions impacting the entity's bank account during the past month.

Use of BRS in audit of cash: The auditor needs to obtain bank reconciliation statements
(BRS) for all bank accounts maintained by the entity as at the reporting period and additionally
need to understand the client’s process and periodicity of making the BRS.

The auditor should ensure that BRS is signed by the authorized personnel so that he is able to
assign responsibility in case of any errors.

CA Monk 31
Verification of BRS shall entail the following:

1) Tallying the balance as per bank book to the bank confirmation/ statement.

2) Checking of all material reconciling items included under cheques issued but presented for
payment to the underlying bank book forming part of books of account. In addition, the auditor
should request for bank statements of subsequent period and should verify if the cheques
issued have subsequently been cleared by the bank. For all cases where cheques have become
stale i.e. 3 months or more have lapsed since the issue date, the same should not appear in the
BRS and should instead be taken back to liabilities.

3) Checking of all material reconciling items included under cheques deposited but not credited
by bank by requesting for bank deposit slips, duly acknowledged by bank and verifying if the
balances were credited by bank subsequently by tallying to the bank statement of subsequent
period. For any instances related to cheques not cleared beyond reasonable time, the auditor
should seek brief descriptions from the management and in case such explanations are found to
be unsatisfactory, the auditor should verify the revenue recognition related to such parties was
in order and as per the Company’s revenue recognition policy.

4) Checking of all material reconciling items included under amounts or charges debited/
credited by bank but not accounted for by requesting for bank statements for the period under
audit and tallying the same. If the amounts are found to be material, the auditor should ensure
that the management records the adjustments for the same in its books of account. If
management does not adjust, the auditor shall consider to qualify his report

34) What is Bank Confirmation? Who Sends it? Need for Bank Confirmation?

A Bank confirmation letter is the letter prepared by auditees as the request by the auditor
during the audit process to confirm the balance, transactions, and ownership of the bank
account. This letter is prepared by the auditee and sent to the bank directly by the auditor. It
should not send by the auditee. Once the bank received the letter, the bank will also need to
send it directly to the auditor. Not auditees. If the auditor noted that the auditee sent the
confirmation to the bank, then the auditor needs to send the letter to the bank again.

Need for Bank Confirmation: Bank confirmation is the auditor’s audit procedure to test the
existence, accuracy, and ownership of the bank account and bank balance of the entity.
Normally, auditors review the bank’s balance and select some important accounts to be

CA Monk 32
confirmed during the interim audit. Auditors draft the confirmation and send it to the client to
review and get the confirmation signed. Once the confirmation is signed, auditors are the one
who proceeds with the confirmation to banks. The bank confirmation is normally the positive
confirmation, and all the confirmations are responding to auditors. For the best practices,
auditors should prepare the schedule and control sheet to control the completeness of sending,
receipts, and confirmation.

35) How will you verify cash if its not possible to attend physical verification?

The auditor should carry out physical verification of cash at the date of the balance sheet.
However, if this is not feasible, physical verification may be carried out, on a surprise basis, at
any time shortly before or after the date of the balance sheet. In the latter case, the auditor
should examine whether the cash balance shown in the financial statements reconciles with the
results of the physical verification after taking into account the cash receipts and cash
payments between the date of the physical verification and the date of the balance sheet.
Besides physical verification at or around the date of the balance sheet, the auditor should also
carry out surprise verification of cash during the year.

36) What is NRV and how to estimate it?

Net realizable value (NRV) is the value for which an asset can be sold, minus the estimated
costs of selling or discarding the asset. The NRV is commonly used in the estimation of the
value of ending inventory or accounts receivable.

How to Calculate the NRV

The calculation of the NRV can be broken down into the following steps:

1. Determine the market value or expected selling price of an asset.

2. Find all costs associated with the completion and the sale of an asset (cost of
production, advertising, transportation).
3. Calculate the difference between the market value (expected selling price of an asset)
and the costs associated with the completion and sale of an asset. It is a net realizable
value of an asset.

NRV = Expected selling price - Total production and selling costs

A new assessment is made of net realisable value in each subsequent period.

CA Monk 33
When the circumstances that previously caused inventories to be written down below cost no
longer exist or when there is clear evidence of an increase in net realisable value because of
changed economic circumstances, the amount of the write-down is reversed.

37 ) Any specific procedures for covid?

Audit Planning & Risk Assessment

Auditor shall be required to assess risk as per the respective facts and circumstances arising
during the audit and whether the risk assessment needs to be revised.

Audit Risk Factors

Auditors need to maintain professional skepticism and be cautious about the fact that fraud
risks may be higher as a result of COVID-19. There may be instances where there is a higher
risk of fraud and the control environment may be working differently as compared to usual, for
instance: Impact on segregation of duties and relaxation of security controls at an entity based
on changes to working conditions e.g. work from homes caused by the COVID-19 restrictions.

Going Concern Considerations

1. How has business model been impacted?

2. How has been supply chain impacted?
3. Are there any legal or contractual issues?
4. How have cash flows been impacted by lower disposable income of Consumers during
COVID-19?
5. Have the business customers been impacted?
6. Does the entity have promoter funds or ability to raise funds?
Also, the auditor shall examine how management & TCWG have tested their projections in
assessing the going concern.

Physical Inverntory Count

Alternative procedures are otherwise needed and where a count is conducted at a date other
than the year end, additional procedures are needed to cover the intervening period. Some of
the alternative audit procedures may include Leveraging technology like CCTV cameras for
review, performing count after year end and auditing the reconciliations, using the work of
other auditors as per SA 600 due to lockdown restrictions etc.

CA Monk 34
Audit Conclusion and Reporting

COVID-19 does not change the auditor’s responsibility in connection to other information that
goes along with the financial report (e.g. the Annual Report). The Annual Report presumably
might include substantial disclosure of risks associated with and the impact of COVID-19.

Auditors are prompted that it is important that they communicate well timed and appropriately
with the entity’s management and those imposed with governance about the impact of the
Covid-19 outbreak on their audit work as well as on the entity and its financial statements.
Where appropriate, auditors may decide to include a key audit matter as per SA-701 in their
audit report.
(Refer fully - Covid-19 Disruptions - ICAI Advisory on Accounting and Assurance related
issuesforF.Y-2019-20)

38) What other audit procedures will you use if external confirmation request
from debtor/creditor is denied or not responded?

A Nonresponse for an accounts receivable/payable balance may include many invoices for
which alternative procedures may need to be performed. It is often only necessary to perform
alternative procedures on the larger and other selected balances so long as there are no unusual
characteristics to the untested invoices and the projection to the population will not alter the
auditor’s evaluation of the sample results.

Alternative procedures to the written confirmation procedures include the use of other means to
communicate directly with the debtor/Creditor.

For example, telephone inquiry to verify account information is frequently used. In some cases
the auditor may visit a debtor to verify the accuracy of the account information. Tests of credits
may be performed by referring to remittance advises, deposit slips, bank statements, cash
receipt records, and authorization of write-offs. Also, examining specific subsequent cash
receipts, shipping documentation, and sales near the period-end.

For accounts payable balances – examining subsequent cash disbursements or correspondence

from third parties, and other records, such as goods received notes.

39) Ind AS-16 -Derecognition of Asset concept.

The carrying amount of an item of property, plant and equipment should be derecognised:
a) on disposal; or
b) when no future economic benefits are expected from its use or disposal.

CA Monk 35
The gain or loss arising from the derecognition of an item of property, plant and equipment is
included in profit or loss when the item is derecognised (unless Ind AS 116 requires otherwise
on a sale and leaseback). Gains shall not be classified as revenue.

The gain or loss arising from the derecognition of an item of property, plant and equipment
shall be determined as the difference between the net disposal proceeds, if any, and the
carrying amount of the item.

The date of disposal of an item of property, plant and equipment is the date the recipient
obtains control of that item in accordance with the requirements for determining when a
performance obligation is satisfied in Ind AS 115. Ind AS 116 applies to disposal by a sale and
leaseback.

The amount of consideration to be included in the gain or loss arising from the derecognition
of an item of property, plant and equipment is determined in accordance with the requirements
for determining the transaction price in Ind AS 115.

Subsequent changes to the estimated amount of the consideration included in the gain or loss
shall be accounted for in accordance with the requirements for changes in the transaction price
in Ind AS 115.

40) List down the 5 Step model as per Ind AS 115

CA Monk 36
41) Auditor's appointment and Rotation

The Companies Act, 2013 prescribes appointment of Statutory Auditors a mandatory process
for every company/LLP. Section 139 and Section 141 of the Companies Act, 2013 deals with
Appointment of Statutory Auditors.

The First Statutory Auditor (Other than Government Company) shall be appointed by Board of
Directors within 30 days from the date of registration of a company and shall hold office as a
Statutory Auditors up to the conclusion of First Annual General Meeting.

The Period of office of First Statutory Auditors shall be from the conclusion of First Annual
General Meeting till the conclusion of Sixth Annual General Meeting.

In case of a Listed Company, No listed company or a company belonging to such class or

classes of companies as may be prescribed, shall appoint or re-appoint—(a) an individual as
auditor for more than one term of five consecutive years; (b) an audit firm as auditor for more
than two terms of five consecutive years.

In case of Government Company or any other company owned or controlled, directly or

indirectly, by the Central Government, or by any State Government or Governments, or partly
by the Central Government and partly by one or more State Governments, the Comptroller and
Auditor-General of India shall, in respect of a financial year, appoint an auditor duly qualified
to be appointed as an auditor of companies under this Act, within a period of one hundred and
eighty days from the commencement of the financial year, who shall hold office till the
conclusion of the annual general meeting.

In case of a Listed Company Where a company is required to constitute an Audit Committee

under section 177, all appointments, including the filling of a casual vacancy of an auditor
under this section shall be made after taking into account the recommendations of such
committee

42) What is unrecorded liability? How is it recorded?

Unrecorded liabilities are those liabilities, which have not been shown in the books of account.
But at the time of dissolution they are required to be paid off.

(a) When the unrecorded liability is paid off the following Journal Entry will be there

CA Monk 37
 Realisation A/c Dr
To Cash A/c
(Being unrecorded liability paid in cash)

(b) When the unrecorded liability is taken over by a partner. The following Journal Entry will
be there
Realisation A/c Dr
To Partner's Capital A/c
(Being unrecorded liability taken over by the partner)

43) Explain the concept of cut off procedure

Cutoff procedures are undertaken to check whether all income and expenses are reported in
the correct accounting period. Simply put, Cut off procedures separation of transaction from
one period and another say upto march 31, and after 31st march.This ensures that transactions
and events are recorded in the proper accounting period.

Cut-off is a separate assertion because the substantive procedures to verify it are typically
different from those applied to the other components of completeness.

When designing and performing cutoff procedures, the auditor should plan and perform audit
procedures that address the risk of material misstatement. This includes determining that the
procedures are designed to detect the types of potential misstatements related to the risk and
obtaining sufficient relevant and reliable (that is, appropriate) evidence regarding whether
revenue transactions are recorded in the appropriate period.

Further, if the risk of improper cutoff is related to overstatement or understatement of revenue,

it is important for the cutoff procedures to encompass testing of revenue recorded in the period
covered by the financial statements and revenue recorded in the subsequent period.

An example of a typical cutoff procedure is to test sales transactions by comparing sales data
for a sufficient period before and after year-end to sales invoices, shipping documentation, or
other appropriate evidence to determine that the revenue recognition criteria were met and the
sales transactions were recorded in the proper period.

CA Monk 38
44) What is analytical review procedure?

The term “analytical procedures” means evaluations of financial information through analysis
of plausible relationships among both financial and non-financial data. Analytical procedures
also encompass such investigation as is necessary of identified fluctuations or relationships that
are inconsistent with other relevant information or that differ from expected values by a
significant amount.

The auditor’s choice of procedures, methods and level of application is a matter of professional
judgement. Analytical procedures include the consideration of comparisons of the entity’s
financial information with comparable information for prior periods, similar industry
information etc., and also include consideration of relationships (financial and non-financial
information).

Various methods may be used to perform analytical procedures. These methods range from
performing simple comparisons to performing complex analyses using advanced statistical
techniques. Analytical procedures may be applied to consolidated financial statements,
components and individual elements of information.

45) What are the audit procedures for sales testing?

Occurrence-
1. Test check few invoices with their relevant entries in sales journal
2. Obtain confirmation from few customers to ensure genuineness of sales transaction
3. Review sequence of sales invoices
4. Check the sales return with sales invoice, challan, credit note, stock register, etc

Completeness-
1. Perform cut-off procedures to ensure that revenues are recognised in the current
accounting period and sales were not tampered towards the period end
2. Verify the credit notes issued after the accounting period
3. Check whether quantity is appearing in sales register or not and check reconciliation of
total sales/goods dispatched as per stock records and financial records and statutory
records like GST

Measurement-
1. Trace a few transactions from inception to completion.
2. Understand client’s operations and related GAAP issues e.g. point of sale revenue
recognition vs. percentage of completion, wherever applicable.

CA Monk 39
Disclosure-
1. Whether disclosure of sales in respect of each class of goods has been made.
2. Whether revenue from operations is disclosed separately in the notes as revenue arising
from:
❖ Sale of products
❖ Sale of Service
❖ Other operating revenues
3. Whether brokerage and discount on sales other than usual trade discount has been
disclosed.
4. Whether the transactions with related parties are appropriately disclosed in notes to
accounts

46) What are the audit procedures for Account Receivables testing?

Check Assertions – Existence, Accuracy, Completeness, Valuation

1) Accounts receivable is one of the bigger items in the Balance Sheet and there are many risks
associated with those accounts receivable.
2) An entity or management may intentionally account for or overstate the accounts receivable
and revenue in order to look good.
3) The proper calculation of the allowance for the doubtful account might not be correct
resulting in the understatement of provision or allowance recorded in the book.
4) A major risk for accounts receivable is existence. Because accounts receivable usually
consist of an aggregation of many smaller accounts, the auditor sends confirmations to the
entity's customers to verify the terms of payment and the validity of the debt.

Testing performed :
● AR Aging
● AR Bucket Testing
● AR Sampling
● AR Circularization/AR Testing
● AR Confirmations/ Alternate Procedures
● Bad debt Reserve Analysis
● Subsequent Credit Memo

AR Aging/ Sampling/AR Confirmations/Alt Procedures

1. Procedures to test existence and accuracy of AR as of year-end
2. Obtain AR Aging detail (by customer) and tie to TB/GL

CA Monk 40
 3. Pick samples for testing
4. Based on selections made or haphazardly select customers for testing
5. Obtain the invoice and agree the date and amount to the AR Aging
6. Recalculate the Aging based on due date and YE to ensure it was aged appropriately
7. AR Circularization – Based on AR Sampling
8. Alternate procedures for confirmations not received – payment details
9. In instances where payment has not been received yet, other supporting evidence may
be obtained

Bad debt analysis/Credit Memo

Bad Debt Reserve/Analysis – To test the valuation of AR
1. Obtain subsequent AR Aging and compare to AR Aging as of Year End to determine
the total that remained outstanding
2. Summarize the AR that remains outstanding
3. Obtain supporting documentation to corroborate management’s assertions as to
collectability and confirm if appropriately valued

Credit Memo Testing - To evaluate subsequent credit memos issued in the year for potential
impact on revenue/AR.
1. Obtain a listing of all subsequent credit memos
2. Analyze significant CMs (above threshold), review details such as reason for issuance
of credit memo, dates, original invoice details, reissued invoice details and impact if
any on the CY revenue/AR.

47) What are the audit procedures for Property, Plant & Equipment testing?

Check Assertions – Existence, Accuracy, Completeness

1. PPE is a material item on the balance sheet

2. Additions are properly recorded at cost
3. Disposals/sales proceeds are properly recognized and accounted for
4. Depreciation expense is properly calculated and allocated based on costs as well as the
estimated useful life
5. The risk of overstatement of PPE is higher than the risk of an understatement. Hence,
existence is an essential audit assertion to be tested.
6. Other risks include incorrect capitalization of assets.
7. The accounting standards that are relevant for PPE accounting are IAS 16 Property,
Plant and Equipment for IFRS, ASC 360 Property, Plant and Equipment for US GAAP.

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 8. Focuses on property, plant, and equipment (PP&E) costs and provides guidance on cost
capitalization, including what types of costs are capitalizable and when capitalization
should begin.

Disclosure requirements - A company must disclose the depreciation expense for the period,
the balances of major classes of depreciable assets, accumulated depreciation by major classes
or in total, and a general description of the depreciation method(s) used in computing
depreciation expense concerning the major classes of depreciable assets.

Testing performed:

● PPE Rollforward
● Depreciation SAP
● Sampling
● Additions/Disposals Testing

Rollforward Procedures/Additions and Disposals Testing

1. To test existence and accuracy of FA as of year end

2. Obtain rollforward from the client and tie to the GL/T
3. Includes cost and accumulated depreciation
4. Review additions and disposals and assess if any items above PM should be sampled
for further testing
5. Perform sampling if within scope
6. Request for relevant supports from the client

Depreciation SAP

1. To determine existence and accuracy of depreciation expense

2. Develop Expectation of Depreciation by category based on –
3. Average gross balance per rollforward
4. Fully depreciated balance
5. Net depreciable base
6. Depreciation rate
7. Investigate any variance above threshold

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48) What are the audit procedures for Inventory testing?

Check Assertions – Existence, Completeness, Cut off, Rights & Obligations, Valuation,
Presentation & Disclosure

1) Participate in the inventory count with the management

2) Review entity’s plan
3) Confirm or investigate any inventory of the entity lying with a third party
4) Perform analytical procedures
5) Verify the clerical and arithmetical accuracy of inventory listings.
6) Reconcile the Inventory Count to the General Ledger
7) Depending on how the business operates, the management may value inventory using First-
in first-out (FIFO) or weighted average basis - Consider the reasonableness of the method
adopted.
8) Ensure whether the following disclosures as required under Schedule III (Part 1) to the
Companies Act, 2013 have been made.
9) Follow up for items that are obsolete, damaged, slow moving and ascertain the possible
realizable value of such items. Carefully examine the valuation of obsolete and damaged
inventory.

49) What are the audit procedures for Cash and Cash Equivalents testing?

Cash and cash equivalents in the form of cash in hand, stamps in hand, balances held with bank
in current accounts/ margin money accounts, cash credit accounts (debit balance), fixed
deposits, cheques in hand etc. represent the most liquid assets of an enterprise i.e readily
convertible into cash and subject to insignificant value risk. Utmost professional skepticism
needs to be exercised while auditing such balances as they are prone to misappropriation.

Check Assertions - Existence, Completeness, Valuation, Disclosures

The primary audit procedure used in testing cash balances is confirmation. In order to test
confirmation, auditors ask the company's bankers to verify the balance of the bank accounts
directly; responses are sent solely to the auditors.

Reconciliation Testing- test the bank reconciliation process by examining cash confirmations.
1. To test whether controls are working effectively over bank payments and petty cash
payments, you can perform a control test on a sampling basis.
2. You will have to check the overdraft balances with the bank accounts

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 3. If there are any foreign currency bank account exists, please do confirm that
appropriate exchange rate is used for the presentation of foreign currency account
balances in the financial statements.

50) What are the audit procedures for Accounts Payable testing?

Accounts Payable is the amount the Company owes for services rendered or goods received. It
also includes the subsequent accruals (record the payables).

Assertions – Existence, Accuracy, Completeness, Valuation

Primary risks include –

● AP and expenses being intentionally understated
● Payments made to inappropriate vendors
● Duplicate payments to vendors

Testing performed:
● AP Aging
● SURL or Search for Unrecorded Liabilities
● Fictitious Vendor Testing

AP Aging/SURL

1. Procedures to test existence and accuracy of AP as of year-end

2. Obtain AP Aging detail and tie to TB/GL
3. SURL is performed to check the completeness and accuracy of the Company’s
liabilities as of year end
4. For SURL we obtain supports related to Payments, Invoices and Goods Received
5. If no relevant payments are made, as part of our expanded procedures, we will obtain
subsequent invoices and check for details
6. If neither is available, we can update goods received details – whether the product or
service is properly recorded and received.

Fictitious Vendor Testing

1. To evaluate the Company’s disbursements for improper expenses and fictitious vendors
2. Obtain the Vendor Listing
3. Review the largest vendors

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 4. Perform an internet search for the background and nature of these vendors
5. Check if any of these vendors are being covered in OPEX/SURL testing
6. Obtain an invoice for these vendors and ensure that they are authentic

51) What are the audit procedures for Borrowings testing?

Liabilities are the financial obligations of an enterprise other than owners’ funds. Liabilities
include borrowings, trade payables and other current liabilities, deferred payment credits and
provisions. Verification of liabilities is as important as that of assets, for, if any liability is
omitted or understated or overstated, the financial statements would not show a true and fair
view of the state of affairs of the company.

Existence:
1. Review board minutes for approval of new lending agreements.

Completeness:
1. Agree details of loans recorded (interest rate, nature and repayment terms) to the loan
agreement.
2. Agree details of leases and hire purchase creditors recorded to underlying
contracts/agreements
3. Obtain Written Representation that all the liabilities which have been recorded
represent a valid claim by the lenders
4. Review subsequent transactions after the end of the reporting period to determine if
there are unrecorded liabilities at year-end and the transactions are recorded in the
correct period.
5. Valuation:
6. Roll out and obtain independent balance confirmations in respect of all the borrowings
from the lender
7. Determine that the accounting policies and methods of recording debt are appropriate
and applied consistently.
8. Agree the loan balance and loan payables to the loan agreement
9. Recompute the interest and discount or premium on redemption, if any.
10. Check computation of the amortization of premium or discount, if any

Disclosure:
1. Determine that the following items, if any, are properly recorded, classified, and/or
disclosed, as appropriate :
(a) Bonds/debentures
(b) Term loans

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 (c) Deferred payment liabilities
(d) Deposits
(e) Loans and advances from related parties.

1. Examine the important terms in the loan agreements and the documents, if any,
evidencing charge in respect of such loans and advances.
2. In case of a default in repayment of borrowing and/ or interest on the balance sheet
date, ensure that following disclosures have been made separately for each case:
■ Period of default.
■ Amount of default.

52) What are the audit procedures for Journal testing?

The need for journal entry testing arises when the auditor needs to test the nature, timing, and
extent of journal entries. It is done to recognize the risk of material misstatement due to fraud
while recording financial transactions. The auditor should design and perform audit procedures
to test the adequacy of the journal entries recorded in the general ledger and other adjustments
made in the preparation of the financial statements.

Assertions – Completeness, Accuracy & Existence

Testing performed:
○ Journal Entry Completeness
○ Journal Entry Testing (transactions)

Journal Entry Testing

Test the data for completeness by doing a roll forward of all journal entries to the period-end
trial balance for each general ledger account or financial statement account.

1) Obtain the JE file/General ledger from the client

2) Further obtain trial balance for the period/year ended and prior year and calculate the
change in accounts
3) Using the SUMIF functionality we pulled the activity during the year per General
ledger for all the GL accounts and compared the same with change in accounts as
calculated in step 2, noting no variances. (applicable for small clients, clients with
lesser transactions)

Management Override: This risk is present in most companies, regardless of strength of

controls. This is most achieved through processing of inappropriate journal entries. This risk

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affects the whole population of journal entries and is not limited to a specific assertion or FSA.
Based on the audit team’s knowledge of the clients, the audit team scanned the population of
journal entries to identify various situations in which a journal entry may be considered
unusual.

Process to identify unusual journal entries:

● Journal entries made to unrelated, unusual, or seldom-used accounts.

● Journal entries made by individuals who typically do not make journal entries.
● Journal entries containing consistent ending numbers (“999”).
● Journal entries with line items containing specific wording.
● Unbalanced journal entries.
● Journals recorded at the end of the period or as post-closing entries that have little or no
explanation or description.
● Journal entries over performance materiality
● Journal entries posted on weekends/holiday

Evaluate journal entries and supporting documentation and determine whether they satisfy the
attributes as mentioned below:
1. Journal properly authorized and approved
2. Entry has appropriate supporting documentation
3. Entry was posted to appropriate general ledger account
4. Entry was posted to the appropriate accounting period
5. Valid business reason for entry
6. Reasonable for nature/operation of the business

53) How will you do audit of provision for bad debts?

1. A proper system of follow up exists and if necessary, adequate provision for bad debt
should be made by preparing adequate ageing schedule of the debtors.

2. Scrutinize the analysis and identify those debtors which appear doubtful; discuss with
management about reasons as to why these debtors are not included in the provision for
bad debts. Perform further testing where any disputes exist.

3. He should check if provisions are made at appropriate rates considering the

recoverability of amounts due.

4. Prepare schedule of movements of bad debts – Provision accounts and debts written off
and compare the proportion of bad debt expense to sales for the current year in
comparison to prior years to see if the current expense appears reasonable.

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 5. Check that write-offs of the receivable balances have been approved by an appropriate
authority i.e. the Board of Directors in case of a company.

54) How will you audit the addition of fixed assets?

Verify the movement in the PPE schedule (asset class-wise like building, Plant & machinery
etc.) compiled by the management i.e. Opening balances + Additions during the period –
Deletions during the period = Closing balances. Tally the closing balance to the entity’s books
of account.

Check the arithmetical accuracy of the movement in PPE schedule. Tally the opening balances
to the previous year audited financial statements. For additions during the period under audit,
obtain a listing of all additions from the management and perform the following procedures:

1. For all material additions, verify if such expenditure meets the criteria of PPE as per AS
10 Revised. (Refer to Capital and Revenue expenditure).
2. Ensure that the entity is not recognizing costs of the day-to-day servicing in the
carrying amount of an item of property, plant and equipment.
3. Test the purchase invoice, installation certificate or report or other similar
documentation maintained by the entity to verify the date of addition, for all additions
samples of PPE during the period under audit.
4. Verify whether the PPE additions have been approved by authorized personnel.
5. Verify whether proper internal processes and procedures like inviting competitive
quotations/ floating tenders etc. were followed prior to finalising the vendor for
procuring items of PPE/ awarding of work contract for capital projects by checking the
supporting documents of the samples selected.

55) What is ICDS in Tax audit?

As per Section 145 of the Income Tax Act, any assessee having taxable income under the heads
“Profits and gains from business or profession” or “Income from Other Sources” has to
compute their taxable income in accordance with cash or mercantile system of accounting.
Furthermore, the section states that the Central Government may notify from time to time if it
is to be followed by any class of taxpayer or in any class of income.

Key aspects of ICDS

1. It is applicable to all taxpayers (corporate/non-corporate or resident/non-resident)

irrespective of the turnover or income.

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 2. It will not have any impact on the minimum alternate tax (MAT) for corporate assessees
as it will be based on the book profits to be determined as per the current applicable
AS. It will only be applicable for computation of income chargeable under the heading
“Profits and gains of business or profession” or “Income from other sources”.
3. It is applicable only on the computation of the income and not for maintenance of the
books. If there is any conflict, then the Income Tax Act will prevail over ICDS.
4. Income Tax Authorities have the power to assess the income on the best judgment basis
on non-compliance of ICDS.
5. All ICDS (except VII relating to Securities) contains transitional provisions which in
general provide for recognition of outstanding contracts and transactions as on 1st April
2015 in accordance with it after taking into account income/expenditure/loss already
incurred in the past. There is no ‘grandfathering’ for outstanding contracts or
transactions as on 31st March 2015.
6. It does not provide any explanations or illustrations like AS. It only lays down the
principles to be adopted for computing Income.
7. Revenue or Expenses on which there is no ICDS will continue to be governed by
existing AS. *candidates are advised to refer to ICDS in detail in ICAI website or study
material.

56) Explain briefly about IND AS 116

Ind AS 116 sets out the principles for the recognition, measurement, presentation, and
disclosure of leases. The objective is to ensure that lessees and lessors provide relevant
information in a manner that faithfully represents those transactions. This information gives a
basis for users of financial statements to assess the effect that leases have on the financial
position, financial performance and cash flows of an entity.
Ind AS 116 will replace current Ind AS 17 Leases, from its proposed effective date 1 April
2019.
Ind AS 116 primarily affects the accounting by lessees and will result in the recognition of
almost all leases on the balance sheet. Ind AS 116 introduces a lessee accounting model that
requires a lessee to recognise liabilities and assets for all leases, unless the asset is of low
value. A person, or an entity, entering into lease contracts with a term of more than 12 months,
has to abide by the standards set under Ind AS 116.
Ind AS 116 is applicable to all leases, including leases of right-of-use assets in a sub-lease.
Keeping in view the COVID-19 pandemic, the amendment by the chartered accountants’ apex
body, ICAI, provided lessees with the option to not assess a rent concession occurring as a
result of the direct consequence of the pandemic, as a lease modification.

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57) What is Liquidity and how one can assess the liquidity position of a company?

Liquidity refers to the company’s ability to pay off its short-term liabilities such as accounts
payable that come due in less than a year. Solvency refers to the organization’s ability to pay its
long-term liabilities.Banks and investors look at liquidity when deciding whether to loan or
invest money in a business. The liquidity position of a company can be assessed by:

Liquidity Ratios

Computation and analysis of the liquidity are made by a system of ratios. These liquidity ratios
characterise the financial situation of the company, its capacity to generate adequate cash for
payments. The data on which the liquidity ratios are computed can be found within the
components of financial statements: balance-sheet, profit and loss account, cash flow statement
and notes. Liquidity ratios, as any other ratios that are use in financial analysis, are not relevant
as absolute values. They must be computed and interpreted for a longer period of time (that
must allow to observe the trend over time for the analysed entity) or by comparisons through
different entities. Analyzing the trend over time for a certain company or the comparison
among different companies is often enlightening.

Current Assets and Current Liabilities

The first step in liquidity analysis is to calculate the company's current ratio.Current assets
include cash, accounts receivable, notes receivable or other assets, such as marketable
securities, that are traded in an active market and readily converted to cash. Current liabilities
are those settled by either current assets or the creation of a new liability within the current
fiscal period. Current liabilities include accounts payable and accrued expenses such as utility
and insurance expenses.

Cash Budgets

The cash budget forecasts a company’s cash inflows and outflows for a particular time period
such as a day, month or fiscal year. In most instances, a business generates monthly cash
budgets for the current fiscal year and uses the budgets for annual planning purposes. In turn, a
daily cash budget is created at the beginning of each month to create a picture of day-to-day
cash flows in support of daily business operations. Prior financial statements and management
assumptions provide input for the forecast of the current assets and liabilities reflected in both
current monthly and daily cash budgets.

CA Monk 50
Monthly Cash Budget
Eugene Brigham describes the creation of a cash budget in "Fundamentals of Financial
Management" as a matter of estimating the revenues and expenses for a fiscal period and then
determining if such items lead to a net cash gain or loss. For example, a monthly cash budget
requires that the month’s sales be forecasted and allocated to the days on which the sales
revenues or cash receipts will be collected. Purchases and expenses are also estimated and
allocated to the days on which cash payments will be made for the related materials, labor,
leases, taxes, capital expenditures and other expensed items. The cash payments are then
subtracted from the cash receipts to obtain the month’s forecasted net cash gain or loss. This
gain or loss is added or subtracted from the previous month’s cash balance to forecast the cash
available at the end of the month.

General /Personal Questions

General Questions
1. Tell me about yourself? (Mandatory Ques-Prepare summary of 2-3 mins smartly)
2. How do you manage your personal life?
3. How you deal daily 12-15 hrs working?
4. How will you handle job stress?
5. What’s your opinion on current women situation in Afghanistan? (any current topic)
6. What are your strengths & weaknesses?
7. Discussion on your qualifications?
8. What is your expected salary?
9. What is your current salary?
10. Why you want to switch?
11. Why you want to join our organization?
12. What is your expectation from our company or what are you looking for?
13. Why you want to start job and not keep studying?
14. Do you have any friend in our organization?
15. What do you know about this organization?
16. Personal hobbies and family background?
17. One word which defines your personality?
18. What about your further study? (Regarding your future plans).
19. What do you think KRAs (Key Result Areas) and ICAs (Individual contribution
20. Areas) should be, if we select you, for the position?
21. Are you willing to relocate or travel (if yes, then how much- 50%, 80% or 100%)?

CA Monk 51
 22. What according to you is success?
23. How do you think your skills will be useful in discharge of your duties?
24. Are you a leader or a follower?
25. How do you update your knowledge?

Articleship Experience
1. Tell us about the work done by you in articleship training?
2. Where have you done your training from? What type of audits have you dealt with?
3. What were your roles and responsibilities in the firm?
4. Why have you changed the firm?
5. What are the major findings during articleship and how have you dealt with the issues?
6. What are the major contributions made by you in the process of audit work?
7. Any major point which you would like to highlight about your work experience during
your training.
8. What role has your articleship played in your growth?

Case studies
1. Hypothetical situations to check the Job priority/Seriousness for Job (Which may vary
from case to case).
2. Suppose you have received urgent work from the manager in the morning and suddenly
a family plan happened, you have to leave office urgently. So, what will be your
response in that scenario?
3. If you have assigned work to two of your trainees and one of them feels that work given
to him is more as compared to other and he complains about the same. how do you
tackle this situation?
4. If you are working in a team and your team mate have to leave urgently due to some
urgent work and his work is still pending and you are working on a project which have
deadline on the same day. How will you handle the situation?
5. Do you have any questions for us? (Mandatory Ques)

Group discussion Indicative topics

1. Can women be good managers ?
2. Will India get a seat at the UN security council ?
3. Has WTO been hijacked by the developed countries ?
4. Nuclear power- a boon or a curse ?
5. Is administered price mechanism actually dismantled in the oil and gas sector ?

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 6. Should all the subsidies be removed ?
7. Should there be reservation in educational institutions ?
8. Can anybody predict rise / fall of stock market index predicted ?
9. Is futures market gambling or a risk management tool ?
10. Restoring the stakeholders confidential in financial statements.
11. How to deal with international terrorism ?
12. How friendly are we to our neighbouring countries ?
13. Corruption is the price we pay for democracy.
14. Foreign TV channels are destroying our culture.
15. How to deal with high oil prices ?
16. Beauty contests degrade womanhood.
17. Should there be private universities ?
18. Should the public sector be privatized ?
19. Is globalization really necessary ?
20. Value based politics is the need of the hour.
21. Religion should not be mixed with politics.
22. Virtual learning - a substitute for classroom learning ?
23. Impact of smart phones on young minds
24. Non-fungible tokens (NFT)
25. Artificial Intelligence - Will man be ever replaced by machines?
26. Should people invest in cryptocurrency?
27. OTT vs Theatre
28. Startup India and its impact on startup culture in India.
29. Russia -Ukraine Conflict
30. Eight years of Modi Government
31. Impact of covid-19 on global economy
32. Caste census - pros and cons
33. Work from home - Pros and cons
34. Is india ready for 5g?
35. India’s covid 19 vaccination programme
36. Raising the age of marriage for women - pros and cons
37. The rise of the gig economy
38. Climate change/pollution
39. Net zero
40. Farm Laws - Protest, its impact & repeal.
41. Agnipath Scheme - Good or bad?

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