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Interview Questions For A Senior Accountant

This document outlines key interview questions and answers for a Senior Accountant position in Saudi Arabia, focusing on IFRS knowledge, local taxation, financial reporting, and internal controls. It covers topics such as revenue recognition under IFRS 15, Zakat calculation, month-end closing procedures, and cash flow forecasting. Additionally, it emphasizes the importance of critical thinking and proficiency in accounting software.

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29 views5 pages

Interview Questions For A Senior Accountant

This document outlines key interview questions and answers for a Senior Accountant position in Saudi Arabia, focusing on IFRS knowledge, local taxation, financial reporting, and internal controls. It covers topics such as revenue recognition under IFRS 15, Zakat calculation, month-end closing procedures, and cash flow forecasting. Additionally, it emphasizes the importance of critical thinking and proficiency in accounting software.

Uploaded by

wasiuadesina1234
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Best Interview Questions and Answers for a Senior Accountant

Job in KSA 🇸🇦
Here are top realistic and practical questions asked in interviews for a Senior
Accountant role in Saudi Arabia, focusing on accounting expertise, IFRS
knowledge, local regulations, and critical thinking skills:

1. IFRS Expertise

Q1: Difference between IFRS 15 and industry practices for long-term


contracts.

• Under IFRS 15, revenue is recognized when control of goods or services is


transferred to the customer over time or at a point in time, depending on
performance obligations.

• Industry practices may follow progress billing or cash basis, which may
not align with IFRS.

• Example: In construction, revenue is recognized using the percentage of


completion method (Input & Output Method) under IFRS if performance
is over time.

Q2: Treatment of leases under IFRS 16.

• Finance Lease: Recognize both a Right-of-Use Asset and a Lease


Liability on the Balance Sheet. Depreciate the asset and amortize the
liability.

• Operating Lease: Under IFRS 16, operating leases are now treated
similarly to finance leases, except for short-term leases (less than 12
months) or low-value assets, which can still be expensed directly.

2. Zakat, VAT & Taxation 🇸🇦

Q3: How to calculate Zakat?

• Zakat is calculated based on zakatable assets (e.g., cash, receivables,


inventory) minus zakatable liabilities.

o Formula: Zakat Base = Assets – Non-Zakatable Liabilities

• Rate: 2.5% of the Zakat Base.

• Non-zakatable items include fixed assets, intangibles, and prepayments.


Q4: VAT adjustments for input/output VAT.

• Output VAT is collected on sales, and input VAT is paid on purchases.

• Net VAT payable = Output VAT - Input VAT.

• Adjustments are made for non-deductible input VAT (e.g., entertainment


expenses).

Q5: Withholding Tax in KSA.

• WHT applies to cross-border transactions with non-residents. Rates vary


based on the type of payment (e.g., 5% for services).

• Compliance: File WHT returns monthly.

3. General Ledger & Reconciliation

Q6: Steps for Trial Balance review:

1. Ensure all journal entries are posted.

2. Reconcile subsidiary ledgers (A/R, A/P, Fixed Assets) to the general


ledger.

3. Verify the debit and credit balances.

4. Identify discrepancies and correct errors.

Q7: Bank Reconciliation Steps:

1. Compare the bank statement to the GL balance.

2. Identify unrecorded transactions (e.g., bank fees, interest).

3. Match checks issued, deposits, and withdrawals.

4. Record necessary adjustments and investigate unmatched items.

4. Month-End & Year-End Closing

Q8: Month-End Close Steps:

1. Post accruals, prepayments, and depreciation.

2. Reconcile bank accounts, A/R, A/P, and fixed assets.

3. Verify trial balance and prepare financial statements.


Q9: Preparing for an audit:

• Ensure all ledgers are reconciled.

• Prepare supporting documents:

o Trial Balance

o Bank statements

o Fixed Asset Register

o Zakat/VAT returns

• Address audit queries promptly.

5. Financial Reporting

Q10: Preparing Financial Statements:

• Use the Trial Balance to prepare:

o Income Statement (Revenue – Expenses = Profit/Loss)

o Balance Sheet (Assets = Liabilities + Equity)

o Cash Flow Statement (Operating, Investing, Financing).

Q11: Impairment Loss Treatment:

• Under IAS 36, impairment is recognized if the recoverable amount of an


asset is less than its carrying amount.

o Journal Entry:
Dr. Impairment Loss (P&L)
Cr. Asset Value (Balance Sheet)

6. Fixed Assets Management

Q12: Capitalization & Depreciation:

• Assets are capitalized if they meet:

o Criteria: Cost > Threshold, Future Economic Benefits.

• Depreciation is charged using the straight-line or reducing balance


method based on IAS 16.
Q13: Fixed Asset Register:

• Maintain a detailed register with:

o Purchase date, cost, useful life, accumulated depreciation, net


book value.

• Conduct periodic physical verification.

7. Accounts Payable & Receivable

Q14: Three-Way Matching:

• Match the purchase order, supplier invoice, and goods receipt before
payment.

o Ensures accuracy and prevents fraud.

Q15: Aging Report:

• Track overdue invoices and categorize receivables into 30/60/90+ days to


manage collections efficiently.

8. Internal Controls

Q16: Ensuring Internal Controls:

• Implement segregation of duties (e.g., separate approval and payment).

• Automate approval workflows with thresholds.

Q17: Fraud Resolution:

• Investigate discrepancies, document findings, and report to


management.

9. Cash Flow & Budgeting

Q18: Cash Flow Forecasting:

• Use historical data to predict cash inflows and outflows.

• Adjust forecasts for seasonality and business plans.

Q19: Budget Monitoring:

• Compare actual vs. budgeted figures and analyze variances.


10. Critical Thinking

Q20: Accounting Error Example:

• Example: Identified a duplicate invoice posting.

o Resolution: Reversed the entry, reviewed systems, and


implemented controls to prevent recurrence.

Q21: Task Prioritization:

• Focus on high-priority tasks (e.g., month-end closing) and delegate


routine tasks to junior staff.

11. Accounting Software

Q22: Software Proficiency:

• Proficient in SAP, Dafater, QuickBooks, and Xero.

Q23: Integrating Systems:

• Ensure real-time integration between accounting systems and external


platforms (e.g., banks, VAT portals).

12. Scenario-Based

Q26: If goods are delivered but the supplier delays invoicing, how would you
record the transaction?

• Record as:
Dr. Goods/Services Delivered (Accrued Expense)
Cr. Accrued Payable

Q27: If a company's cash flow is negative but its income statement shows a
profit, how would you explain the difference?

• Reasons:

o High receivables, uncollected revenue.

o Capital expenditures impacting cash.

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