Infosys

To evaluate a company's financial health, I would analyze its balance sheet, income statement, and cash flow statement. Key metrics include liquidity ratios like current ratio, profitability ratios like net profit margin, and solvency ratios like debt-to-equity ratio. Additionally, I would assess trends over time and compare them with industry benchmarks.

GST simplifies the tax structure by replacing multiple indirect taxes with a single tax, reducing the cascading effect. It improves supply chain efficiency by allowing seamless input tax credit across states and reducing logistics costs due to the elimination of state entry taxes.

I would start by understanding the client's business environment, industry, and internal controls. Then, I would identify potential risks by reviewing financial statements, conducting interviews with management, and analyzing past audit reports. Finally, I would prioritize risks based on their impact and likelihood.

In my previous internship, I was tasked with analyzing a financial model for a merger. I broke down the model into smaller components, validated assumptions with market data, and conducted sensitivity analysis to understand the impact of key variables. This helped in providing a clear recommendation to the management.

I regularly read updates from the Income Tax Department and subscribe to newsletters from reputed tax advisory firms. Additionally, I attend webinars and workshops conducted by ICAI and other professional bodies to stay informed about the latest developments.

Internal audit plays a crucial role in corporate governance by providing independent assurance on the effectiveness of risk management, control, and governance processes. It helps in identifying areas of improvement and ensuring compliance with laws and regulations, thereby enhancing organizational accountability and transparency.

Working capital management involves managing the short-term assets and liabilities to ensure a company can meet its operational expenses and short-term debt obligations. It includes managing inventory levels, accounts receivable, and accounts payable to optimize liquidity and profitability.

Direct taxes are levied directly on an individual's or organization's income or wealth, such as income tax and corporate tax. Indirect taxes are levied on goods and services, such as GST and VAT, and are collected by intermediaries from the end consumers.

I would immediately report the findings to the audit committee and senior management, ensuring confidentiality. I would then gather evidence, document the fraud's impact, and work with legal and compliance teams to address the issue and prevent future occurrences.

The time value of money is crucial as it recognizes that a sum of money today is worth more than the same sum in the future due to its earning potential. This concept is fundamental in evaluating investment opportunities, calculating present and future values, and making informed financial decisions.

I would start by understanding the client's global operations and tax obligations in different jurisdictions. Then, I would review their current compliance practices, identify gaps, and recommend strategies to ensure adherence to local and international tax laws, minimizing risks and penalties.

An effective internal control system includes a strong control environment, risk assessment processes, control activities, information and communication channels, and continuous monitoring. These components work together to ensure operational efficiency, reliable financial reporting, and compliance with laws and regulations.

I would evaluate the borrower's credit history, financial statements, cash flow projections, and collateral. Additionally, I would consider external factors like industry conditions and economic trends. This comprehensive assessment helps determine the borrower's ability to repay the loan.

I would recommend strategies such as utilizing tax deductions and credits, deferring income, investing in tax-efficient vehicles, and optimizing business structures. It's important to ensure that all strategies comply with legal requirements and align with the client's financial goals.

I ensure accuracy and reliability by following a structured audit methodology, using standardized checklists, and cross-verifying data with multiple sources. Additionally, I maintain clear documentation and seek feedback from colleagues to validate findings.

NPV (Net Present Value) measures the difference between the present value of cash inflows and outflows, indicating the profitability of an investment. IRR (Internal Rate of Return) is the discount rate that makes the NPV of an investment zero. While NPV provides a dollar value, IRR gives the rate of return, helping in comparing different projects.