What is CA Tushar Makkar known for?

CA Tushar Makkar is known for being AIR 47 in CA Final and creating India's largest audit community.

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He offers audit resources, courses, and expertise to chartered accountants.

Top 20 Interview Questions for CA Articleship: Your Guide to Nailing the Interview

Securing a CA Articleship is a significant milestone for every aspiring Chartered Accountant. This period is not just about learning; it lays the foundation for your professional journey by exposing you to real-world accounting, auditing, and taxation scenarios. The interview process for an article can be challenging, as firms look for candidates with sound technical knowledge, communication skills, and a willingness to learn.

To help you stand out, here’s a list of the top 20 interview questions commonly asked during CA Articleship interviews of mid-sized firms and tips to answer them effectively.

November 28, 2024

Commonly Asked Questions and How to Answer Them?

1. Tell Me About Yourself.

This is a classic opening question. Use this opportunity to present a concise summary of your academic background, achievements, and interests. Mention any internships or projects related to accounting or finance. Emphasize why you chose the CA course and mention your long-term career goals.

Tip: Keep it professional and relevant to the role.

Example Answer:

“I am a CA inter passed student with a strong interest in accounting and taxation. I chose CA because I enjoy analyzing financial data and solving problems. During my studies, I developed skills in financial reporting and auditing. My goal is to gain practical experience in taxation and audit to become a well-rounded professional. Outside of academics, I enjoy reading about new developments in taxation and working on improving my Excel skills.”

2. Why Do You Want to Join Our Firm?

Employers want to know how much you understand their firm and its operations. Research the firm’s areas of expertise (audit, taxation, consultancy, etc.), clientele, and reputation in the market.

Example Answer:

“I admire your firm’s specialization in taxation and its reputation for mentoring young professionals. I believe this aligns with my interest in direct and indirect taxation, and I’m confident I’ll gain valuable experience here.”

3. What Are Your Strengths and Weaknesses?

When discussing strengths, focus on qualities that are valuable in the articleship role, such as attention to detail, analytical thinking, or time management. For weaknesses, choose a minor one and explain how you are working on improving it.

Example Strength:

“I have strong analytical skills, which help me identify discrepancies in financial statements effectively.”

Example Weakness:

“I tend to be overly detail-oriented, but I am learning to balance precision with meeting deadlines.”

4. What Do You Know About GST (Goods and Services Tax)?

This is a favorite technical question, as GST plays a vital role in taxation. Be prepared to explain its structure, key provisions, and recent updates.

Tip: Brush up on topics like input tax credit, GST rates, and filing returns.

Example Answer:

“GST is a comprehensive, multi-stage, destination-based tax levied on the supply of goods and services. It has subsumed several indirect taxes like VAT, excise, and service tax. The primary components are CGST, SGST, and IGST. GST ensures uniform taxation and simplifies compliance through mechanisms like input tax credit and GST returns.”

5. Explain the Basics of Auditing.

Audit is a core aspect of article ship training. You should be able to define auditing, its objectives, and the basic procedures involved, such as vouching, verification, and reporting.

Example Answer:

“Auditing involves examining financial records to ensure accuracy, compliance with regulations, and detection of fraud. The key steps include planning, gathering evidence, vouching, verification, and forming an opinion to prepare the audit report.”

6. What Is the Difference Between Direct and Indirect Taxes?

This question tests your fundamental knowledge of taxation. Be ready to explain with examples:

• Direct Taxes: Paid directly to the government, like Income Tax.

• Indirect Taxes: Paid indirectly, like GST or Customs Duty.

Example Answer:

“Direct taxes are paid directly by individuals or entities to the government, such as Income Tax. Indirect taxes are collected by intermediaries and passed to the government, such as GST. Direct taxes depend on income, while indirect taxes are consumption-based.”

7. How Do You Stay Updated with the Latest Developments in Taxation or Accounting Standards?

Mention specific resources you use, such as ICAI updates, newsletters, or finance-related websites etc.

Example Answer:

“I regularly follow ICAI notifications, read updates on websites like www.catusharmakkar.com for auditing, https://www.catusharmakkar.com/blog and subscribe to newsletters from accounting firms. I also attend webinars and discussions conducted by ICAI to stay informed about recent amendments and industry trends.”

8. Can You Explain the Accounting Standards You’re Familiar With?

You’re not expected to know all accounting standards but be familiar with basic ones like AS 1 (Disclosure of Accounting Policies), AS 9 (Revenue Recognition), or Ind AS 16 (Property, Plant, and Equipment).

Example Answer:

“I am familiar with AS 1, which deals with the disclosure of accounting policies, and AS 9, which outlines revenue recognition principles. For example, AS 9 requires recognizing revenue only when it is realized or realizable and earned. I have also studied Ind AS 16, which deals with the accounting of property, plant, and equipment.”

9. What Are Deferred Tax Assets and Liabilities?

Explain this concept with examples, focusing on its application in financial statements.

Example Answer:

“Deferred Tax Assets arise when taxable income is higher than accounting income, creating future tax benefits, such as in the case of provisions for doubtful debts. Deferred Tax Liabilities occur when accounting income is higher than taxable income, like in the case of accelerated depreciation methods used for tax purposes.”

10. How Do You Handle Deadlines and Work Pressure?

Firms look for candidates who can balance multiple tasks efficiently. Share an example from your academic life where you successfully met a deadline despite challenges.

Example Answer:

“I prioritize tasks based on urgency and importance, use to-do lists, and allocate time for each task. For instance, during my exams, I balanced multiple subjects by creating a structured timetable and sticking to it. This helped me stay organized and meet deadlines efficiently.”

Behavioral and Situational Questions

11. Describe a Time When You Worked as Part of a Team.

Talk about your teamwork skills by describing a specific project where you collaborated effectively to achieve a goal.

Example Answer:

“During a college project, I worked with a team to analyze the financial performance of a company. My role involved gathering data and preparing the financial statements. By communicating effectively and coordinating responsibilities, we delivered a comprehensive report on time.”

12. How Would You Handle a Situation Where You Made a Mistake?

Show your accountability and willingness to learn. Emphasize how you took steps to rectify the mistake and ensured it wouldn’t happen again.

Example Answer:

“If I made a mistake, I would immediately acknowledge it and inform my senior. For instance, if I missed a step in reconciling accounts, I would recheck the data, identify the error, and correct it. I’d also document the error to ensure it doesn’t happen again.”

13. What Motivates You to Pursue a Career in Chartered Accountancy?

Discuss your passion for problem-solving, love for numbers, and the dynamic nature of the field.

Example Answer:

“My interest in problem-solving and financial analysis motivated me to pursue CA. I enjoy the dynamic nature of the field, especially the opportunity to provide solutions to real-world financial challenges. The profession offers a balance of technical expertise and strategic thinking, which aligns with my skills.”

14. How Would You Handle a Difficult Client?

Highlight your communication skills and ability to remain calm under pressure. For example, explain how you would actively listen to the client’s concerns and provide appropriate solutions.

Example Answer:

“I would approach a difficult client by first listening carefully to their concerns without interrupting. Then, I would clarify their expectations, address their issues calmly, and provide solutions. If needed, I’d seek guidance from a senior to resolve the matter professionally.”

Technical Questions

15. What Is the Difference Between Capital Expenditure and Revenue Expenditure?

Explain with examples:

• Capital Expenditure: Long-term investments, e.g., purchasing machinery.

• Revenue Expenditure: Day-to-day expenses, e.g., salaries.

“Capital Expenditure is incurred to acquire or upgrade fixed assets, such as purchasing machinery, and it provides benefits over multiple years. Revenue Expenditure is for day-to-day operations, like rent or salaries, and is fully expensed in the current year.”

16. What Is the Procedure for Filing Income Tax Returns?

Briefly outline the steps, including gathering documents, using the income tax portal, and verifying the return.

Example Answer:

“The steps for filing income tax returns include:

1. Collecting documents like Form 16 and bank statements.

2. Calculating total income and deductions under various heads.

3. Computing tax liability using the applicable rates.

4. Logging into the income tax portal, filling in the details, and submitting the return.

5. Verifying the return using OTP or other modes.”

17. Can You Explain the Concept of TDS (Tax Deducted at Source)?

Be prepared to define TDS, explain its purpose, and mention common sections like 194C (Contract) or 194J (Professional Fees).

Example Answer:

“TDS is a mechanism where a certain percentage of payment, such as salary or rent, is deducted by the payer and deposited with the government. For example, under Section 194J, 10% TDS is deducted for professional fees exceeding ₹30,000 annually.”

18. What Are Provisions and Contingent Liabilities?

Explain these concepts with examples and their treatment in financial statements.

Example Answer:

“Provisions are liabilities of uncertain timing or amount, like a provision for bad debts, and are recorded in financial statements. Contingent liabilities are possible obligations depending on future events, like pending lawsuits, and are disclosed in the notes to accounts.”

19. How Would You Verify Bank Reconciliation Statements During an Audit?

Outline the steps, such as matching ledger balances, checking for unrecorded transactions, and verifying deposits in transit.

Example Answer:

“I would start by comparing the closing balance as per the cash book and the bank statement. Then, I would check for outstanding cheques, deposits in transit, and any direct debits or credits. I’d also verify supporting documents like deposit slips and bank charges.”

20. What Are Your Career Goals After Completing Your CA?

Share a clear and realistic vision, such as gaining expertise in a specific domain or eventually becoming a partner in a firm.

Example Answer:

“My short-term goal is to gain expertise in auditing and taxation through hands-on experience during my article ship. In the long term, I aim to specialize in taxation advisory and contribute to a reputed firm, eventually progressing to a leadership role.”

Conclusion

By practicing these questions with confidence and tailoring your responses to reflect your unique experiences, you’ll be well-prepared for your CA Articleship interview. Remember, interviewers value clarity, honesty, and a willingness to learn—qualities that set apart a successful candidate. Good luck!

Reference Links

Mastering Statutory Audit Interviews: Comprehensive Questions and Answers

The Satyam Scandal: Unveiling India's Largest Corporate Fraud

Top 20 Interview Questions for CA Articleship: Your Guide to Nailing the Interview

Commonly Asked Questions and How to Answer Them?

Conclusion

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