GENERAL INTERVIEW QUESTIONS

give your brief introduction in simple words don't try to be over smart and tell them what does not
Kindly introduce yourself belong to you for example my name is xyz from abc city I have done my matriculation from aps school in
science subjects and then fsc from the same college in pre medical i was not able to score enough marks
in medical and decided to start chartered accountancy (they will probably ask you why so you should
have answer for this) i have started my afc level from pac college in december 2019 but my attempt was
affected by corona and my afc examination was done in October 2020 for caf I shifted myself towards
the online mode of education and my first three attempts were great but unfortunately I was left with
audit in third attempt which is cleared in in recent attempt along with ca I have also started doing my
bachelor's degree in commerce from allama Iqbal open university and currently I am in its last semester
you can also tell them some of your interesting hobbies here but don't tell them what you
cannot defend
____________________________________________________________________________________
I tried my best in inter but was not able to get the required criteria so I decided to move on something
Why ca after pre-medical / else while researching I came to know about ca as one of the highly qualified professional and reputed
career opportunity where one can grow by hard work and self-belief you can also mention hear about
pre-engineering the 3.5 year training which helps one to grow professionally you can also mention that you didn't like

____________________________________________________________________________________
the university environment (but is ko phir defend bhi karna aana chahie)

normally everyone has his own strengths but for example you can say that i am hardworking and
What are your strengths? committed person like once i have committed something i have no other option except to complete it
remember they can ask you to give your past examples of your strength you can use this example as
reference

one of my strength is that i can reflect on my own performances as it has helped me a lot in improving
myself as a student and ud as a person. my strengths include the fact that i am disciplined focused
person i always do pre planning before starting my work and try my level best to execute it according to
the needs and within time limit other strength that i consider worth mentioning here is that i am a self-
motivated person and fast learner who is always seeking to improve himself self-motivation strength has
helped me a lot in doing my caf level studies as it was all done online and no one in my field was near to
____________________________________________________________________________________
me

Don’t mention weakness that are you your weakness in real. weakness should be like your area which
What are you weakness you are trying to improve
for example: well the area where I think I can improve myself is that currently I have no leadership
experience as I never got an opportunity to be a part of team as a leader and I think this is something I
really want to work on and improve
 Simply go to the farm website and read their values and answer that you can also mention growing
Why our firm opportunities, working environment professional environment positive reviews

____________________________________________________________________________________
What if you are stuck in a first I will try to resolve them by discussing with team members ignoring a conflict will create more
conflict, will you ignore that? issues rather than discussing it if still unresolved I will try to share with seniors and ask them about what
to do in such scenario

____________________________________________________________________________________
Your family background? just tell them about your father either he is a job or business man person and give us some all overview
about his job or business mention your number of siblings and either they or working or studying don't
____________________________________________________________________________________
try to be a shokha person (if your family is on high positions)

Where do you see yourself Well I want to grow myself professionally and ethically in fields of auditing taxation and advisory with
hard work and self believe I can say that I have much more to achieve in my life
after few years?
____________________________________________________________________________________

Do you have any issues with No, as far learning is concerned I believe it will give more exposure to diversified knowledge
late sittings?
____________________________________________________________________________________

Why should we hire you? you should try to give your own answer by mentioning strengths (well you should hire me as I am a
good and fast learner and I believe firm can easily train up and develop me the person firm wants me
to be secondly I am the one you can rely to achieve targets and complete tasks on time)
____________________________________________________________________________________

What motivates you? Example: deadlines, pressure, responsibility, targets, goals, achievements

____________________________________________________________________________________
 Other qs. that he can ask you Tell me something that's not on your resume?
and should know the answer What major challenges did you face, and how did you overcome them

____________________________________________________________________________________
What is your work style? Prepare your own answer (example: I always do pre planning try to resolve the problems as and when
they arise instead of delaying them)

____________________________________________________________________________________
 INVENTORY IS assest held for sale during ordinary course of business or
IAS - 02 one held for use to produce gooods or render services

INVENTORY is measured at lower of cost or NRV

cost is purchase price plus any directly cost
NRV is sale price less cost to sell

can be accounted using weighted or FIFO method but it should be followed

every year ,
________________________________________________________________________________________________

Estimate are like (provision , depreciation , residual value , dep rate)

change is estimate is dealt prospectively
IAS – 08 accounting polices are like (weighted.avg / fifo , rev/cost/FV model)
change in accounting policy dealt retrospectively and change is only done
if it result in better presentation , or required by law

if this is error in previous f/s , first see if its material or not , if correction is
necessary , change is done retrospectively
________________________________________________________________________________________________

it deals with events after the reporting period

Adjusting events are those for which condition existed at balance sheet
date where as non adjusting events are those for which conditions do not
exist at balance sheet date
IAS - 10 Non adjusting material events need to be disclosed
examples of adjusting events include an NRV and bad Debt whereas
examples of non-adjusting event include change in value of asset after
year end , fire occurred after year end , acquisition of subsidiary
if non adjusting event affects the entity ability to continue as a Going
Concern it will be treated as an adjusting event
________________________________________________________________________________________________

Text expense = current tax + deferred tax

IAS – 12 current tax is calculated by multiplying taxable income * tax rate
taxable income is calculated using tax laws for example accounting
depreciation is reversed and tax depreciation is charged
whereas deferred tax is the future tax consequences of current and prior
periods
temporary difference is the difference in carrying amount of Assets and
liabilities using accounting rules and text base of those assets and liabilities
using Text rules

taxable temporary difference results in deferred tax liability where as

deductible temporary difference results in deferred tax asset
for exact definitions you can use your book
________________________________________________________________________________________________
 Property plant and equipment is recognized if cost can be measured
IAS -16 reliably and it is probable that future economic benefits will flow to the
entity
cost is the cash or cash Equivalent paid
cash equivalent is like you can say a cryptocurrency example
cost is equal to purchase price plus directly attributable costs plus
dismantling costs(present value)
for subsequent measurement of property plant and equipment it can be
under cost model for revaluation model , in cost model we take cost less
accumulated depreciation whereas in revaluation model we take revalued
amount less subsequent depreciation
depreciation is the systematic allocation of depreciable amount of an asset
over its useful life
useful life is the time till when the assets will give benefit where as
economic life is the total life of an asset
change in accounting estimate like depreciation expense is dealt
prospectively
in case of revaluation whole class of an asset needs to be revalued if there
is revaluation surplus it is taken to other comprehensive income where as
revaluation loss is taken to profit and loss but if there is previously charged
revaluation surplus or loss first it needs to be set off revaluation reserve is
transferred to revaluation earnings subsequently as like depreciation is
charged
depreciation is commenced when asset is available for use

________________________________________________________________________________________________
IAS 20 deals with the assistance by government in form of transfer of
resources to entity
IAS – 20 it can take many forms not only cash ...... Grant can be conditional or
unconditional

in case of conditional grant we record income as and when condition full

field whereas in case of unconditional grant we record the income
immediately
grant is recorded only if it is probable that entity will comply to conditions
and grant will be received if not received till now

________________________________________________________________________________________________
This standard deals with the interest on loan taken to construct or acquire
a qualifying asset
qualifying asset is one which take substantial period Of time to be
constructed ....... ready to use asset are not considered as qualifying assets
IAS - 23 borrowing cost is the interest and other cost incurred by entity in
connection with the borrowing of funds
there can be two type of delays while construction of asset one is normal
delay like lanter of building whereas other one is abnormal delay like
during covid time in case of abnormal delay capitalization of intrest
exppense is suspended

________________________________________________________________________________________________
 This standard deals with impairment loss
IAS – 36 impairment loss is recorded when recoverable amount of an asset is less
than its carrying amount or net book value

recoverable amount is Higher Of value in use or fair value less cost to Sell

value in use is present value of future cash flows discounted using market
rate of interest

impairment loss is taken to profit and loss if asset is held at cost ..... if asset
is held at revaluation model it is taken to other comprehensive income
against revaluation reserve

there are two types of indicators of impairment one is external like Asset
Value goes down or adverse economic conditions etc .... other one is
internal indicators like asset is damaged or entity is planning to
discontinue its operations etc.....

________________________________________________________________________________________________

This standard deals with land or building for renting purpose or capital

IAS – 40 appreciation purpose

initial measurement is at cost whereas subsequently it can be recorded at

cost or fair value model

in cost model we take cost less depreciation less if any impairment

whereas in fair value we just value at the end ofperiod and Gain or loss is
taken to profit and loss

all investment properties should be recorded using same model

________________________________________________________________________________________________

Earning per share is basically what we we will earn if we have one share in
an entity

there are two types of Earning per share one is basic and other is diluted
IAS - 33 while calculating basic earning per share we do not take potential ordinary
shares in calculation where as in diluted we take potential ordinary shares
in calculation

potential ordinary shares are those that have power to become ordinary
share in future

for listed companies it is necessary to disclose basic and diluted Earning

per share in financial statements

diluted Earning per share can be less or equal to basic Earning per share
but cannot be greater

________________________________________________________________________________________________
 This standard deals with statement of cash flows which is cash and cash
IAS -07 equivalent movement analysis

it has three components operating activities, investing activities, and

financing activities

operating activities include cash from ordinary course of business like

sales ,payroll, expenses incurred

investing activities include like cash from sale or purchase of non current
asset, dividend paid,investment income

financing activities are like cash from shares issued loan repaid or loan
acquired
________________________________________________________________________________________________

Substance over form (legal and actual reality is different,,,, you have to
show Actual reality example sale and lease back .... you sell and
SUBSTANCE OVER FORM
lease back.... it is not technically sale) its atype of loan arrangement
you cannot record it as a sale

________________________________________________________________________________________________

5-step model
IFRS - 15 STEPS
Identify the contract.

Separate performance obligations.

Determine transaction price.

Allocate transaction price.

Recognise revenue.
 One person gives his asset to other for a consideration
lessee(jo assets lay) /Lessor (jo assets day)

Depreciation of Right of use

If transfer at end - as per Ias-16
If not transfer at end - over shorter of lease term and useful life

Ifrs 16 not applied on

-short term lease (less than 1 yr)
-low value item( judgmental)
In this case all rental are charged as expense
IFRS – 16 Lessee accounting
recognize right of use(rou) and lease obligation(LO)
ROU = cost
LO = PV of LP where LP = fix payment+GRV
now GRV is that portion of lease which is guaranteed by lessee

Lessor accounting
Gross investment in the lease (LP + UGRV)
Net investment in the lease (PV of gross investment), discount it at
interest rate implicit in the lease (if not given use lesse increment
borrowing rate)

Finance lease - jis ka andar risk and rewards all are transferred to lesse -
operating lease - jis ka andar risk and rewards all are not transferred to
lesse
in main sa koi aik condition bhi agar meet ho gai to finance lease ho gi
-----Title to assest will transfer at end
----lease term is for 75% of useful life
-----pv of LP is 90% of fair value
----assest is of specialized nature and cant be used by another without
………….major modification
------secondary time period ka liya bhi wo la sikta ha

In operating lease Rental in recorded as income on systematic basis

 LAW
Features of a Company 1. Separate Legal Status
􀀀 contracts with its own name
􀀀 owns assets
􀀀 liable for its debts
2. Share Capital
􀀀 Shares have rights
􀀀 Shares are transferable
3. Separation of ownership from management
4. Limited Liability of Members
􀀀 Limited by shares (upto unpaid amount of shares)
􀀀 Limited by guarantee (upto amount agreed to
contribute)
5. Legal Obligation
6. Liability to pay tax
___________________________________________________________________
7. Perpetual Succession

Ordinary Resolution (simple majority of

present members)
___________________________________________________________________
Special Resolution (3/4th Majority of present
___________________________________________________________________
members + 21 days' notice)

􀀀 Limitsnumber of members to 50.

Private Company: 􀀀 Restricts right to transfer its shares.
􀀀 Prohibits invitation to general public.
A private company can be either SMC or
Other than SMC
___________________________________________________________________
Public Company:
A company which is not a private
company. A public company can be either
unlisted, or Listed
___________________________________________________________________
Limited by Shares: Liability of members limited upto
unpaid amount of shares

___________________________________________________________________
Holding Company: 􀀀 Holds
more than one-half voting securities.
􀀀 Controlscomposition of Board (i.e. appoints or
removes all or majority of directors).

___________________________________________________________________
 Privileges for Limited liability without words “Limited” or
“Guarantee Limited
association not for
___________________________________________________________________
profit
MEMORANDUM OF 1. Name Clause: (with words “Limited” etc.)
ASSOCIATION 2. Registered Office Clause: Province or Islamabad
3. Principal Line of Business Clause: Match with the
name
4. Liability Clause: Limited by share, or Limited by
guarantee + Extent
5. Authorized Capital Clause (if having): Authorized +
Division + Subscribers
6. Undertaking or Subscription Clause: Undertaking
to form a company

principal line of business class,, name clause ,, registred office clause can be
changed with special resolution

___________________________________________________________________
1. Business
ARTICLES OF 2. Transfer/Transmission of shares, and its Form
3. Alteration of capital.
ASSOCIATION 4. Voting and other rights attached to different classes
of shares, and other securities.
5. Notice and Proceedings of General meetings.
6. Voting of members.
7. Proxy Instrument.
8. Number of directors, their powers and duties.
9. Proceedings of directors’ meeting.
10. Disqualification of directors and filling of
vacancies.
11. Minute books.
12. Dividend, and Reserves.
13. Accounts.
14. The seal.
15. Indemnity.
16. Winding up.
___________________________________________________________________

Memorandum of Association refers to a charter document that

encloses key detail which is necessary for company's
incorporation. Articles of Association refer to documents that
___________________________________________________________________
contain all the norms and rules that regulate the company.

Appointment and Tenure of 􀀀 First directors: by

Directors: subscribers till first AGM.
􀀀 Subsequent directors: by
members, for three years.
􀀀 Nominee directors are
appointed by nominating body
___________________________________________________________________
for period as they please

(e.g. death,
Casual Vacancy
disqualification, resignation)
􀀀 Filled by directors (within 90 days if listed), for the remainder term.
􀀀 Required if company is listed or
number is less than minimum.
___________________________________________________________________
 Frequency of directors meeting
:
􀀀 Once in each quarter (for Public
___________________________________________________________________
Company).

Chairman of a listed company:

􀀀 Appointed within 14 days of election of director,
among non-executive directors.
􀀀 For 3 years.
􀀀 Board shall determine roles and responsibilities.
􀀀 Chairman review report on performance of
board shall be included in annual financial
statements.
___________________________________________________________________
Define taxation
taxation is a collection of share of individual or organization income by government under the authority of law
Taxation is used for the documentation of economy

Tax can be a proportional Tax or a progressive tax or regressive tax

in proportional or flat tax same rate is used for every income holder where as
in progressive tax rate of tax increases with the income
in regressive tax same amount of Tax is payable regardless of your income

Tax can be a direct tax or indirect tax direct tax .....

direct tax is directly taken by the government where as indirect tax is collected by third party and then deposited to
the government

Define small company

Small company is one which has paid up capital + undistributed reserves not exceeding 50 million
Employees not exceeding 250
Annual turnover not exceeding 250 million rupees
Which is not formed by splitting up or reconstitution of any business already in existence

There are two types of tax regimes normal tax regime and final tax regime
in normal tax Regime income is taxed on net basis that is gross amount less deductions where as in final tax Regime
tax is deducted at time of transactions by applying rate on gross receipts

Normal text here is from 1st of July - 30th of June any other Tax year will be considered as special text year

Examples of separate block incomes are income from disposal of immovable property
text credits examples are are credit on charitable donations investment in shares profit on debt Pension Fund fresh
graduates and educational expense

First year allowance is 90% of cost of asset

Transitional year is the year between the transition of normal to special tax or from Special to normal tax year

For Resident individual is both foreign and Pakistani incomes are taxable whereas for individual only pakistani
income is taxable

Under income from salary head no deduction is allowed

Termination benefit in income from salary can be treated as normal tax regime for as separate block income
If car is given by employer and is only for official use no amount will be added for text purpose but if it is is for both
personal and official use 5% of cost will be added in case where it is only for personal use then 10% of cost will be
added

Pension is normally exempt but if a person is taking more than one pension then highest one will be exempt but if the
person is above 60 year old or was employee of Federal government or provincial government then no pension will be
taxable
Dearness allowance is given to employees to protect them from inflation

tax ka aur bhi banaoun ga but abhi time nahi