Individual Interview: SAPP Academy 5 Floor, No.54, Le Thanh Nghi Street, Ha Noi Tel 096 972 94 63 Sapp - Edu.vn

SAPP Academy Tel 096 972 94 63
5th Floor, No.54, Le Thanh Nghi street, Ha Noi Sapp.edu.vn
Individual Interview
Contents
I. Non-technical questions ...................................................................................................................... 3
1. Tell me about yourself. ........................................................................................................................ 3
2. What is your greatest strength? .......................................................................................................... 4
3. What is your greatest weakness? ........................................................................................................ 4
4. Why should we hire you? .................................................................................................................... 5
5. What other companies are you interviewing with?” ......................................................................... 6
6. Why do you want this job? .................................................................................................................. 6
7. Tell me about your career goals .......................................................................................................... 7
8. How do you evaluate success? ............................................................................................................ 8
9. What are you passionate about? ........................................................................................................ 8
10. Do you have any questions for me? .................................................................................................... 9
II. Technical questions:........................................................................................................................... 11
1. Now let’s say a company sell a car for revenue of $70,000 at a cost of $50,000. What happen to 3
statements: balance sheet, income statement and cash flow statement? ..................................... 11
2. Why is the income statement not affected by changes in inventory?............................................. 11
3. How many types of calculation method for the value of inventory? What is the difference
between FIFO and LIFO? .................................................................................................................... 11
4. How many types of financial statement a company need to provide in its financial report? Which
one do you choose to assess the company health?.......................................................................... 12
5. How long does it usually take for a company to collect its accounts receivable balance? ............. 13
6. What’s the difference between accounts receivable and deferred revenue? ................................ 13
7. What is the difference between capital leases and operating leases? ............................................ 14
8. What are deferred tax assets/liabilities and how do they arise? .................................................... 14
9. Walk me through the major items in shareholders’ equity. ............................................................ 15
10. What procedures do you think are important for testing cash account? ........................................ 15
11. What are the purpose of auditing? How many types of auditing opinions are there? ................... 16
12. How do the 3 statements link together?........................................................................................... 16
13. What are the criteria to recognize revenue? .................................................................................... 17
14. Let’s say Apple is buying $100 worth of new iPad factories with debt. How are all 3 statements
affected at the start of “Year 1,” before anything else happens? ................................................... 18
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15. Can you give examples of major line items on each of the financial statements?.......................... 18
16. If I were stranded on a desert island, only had 1 statement and I wanted to review the overall
health of a company – which statement would I use and why? ...................................................... 18
17. If depreciation is a non-cash expense, why does it affect the cash balance? ................................. 19
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I. Non-technical questions
1. Tell me about yourself.
1.1. Answering method
 Starting out by sharing some personal interests which don't relate directly to your work:
- Examples might include a hobby which you are passionate about like quilting, astronomy,
chess, choral singing, golf, skiing, tennis, or antiquing;
- Interests like long distance running or yoga which help to represent your healthy, energetic
side are worth mentioning. Pursuits like being an avid reader or solving crossword puzzles or
brain teasers will help to showcase your intellectual leaning. Interests like golf, tennis, and
gourmet food might have some value if you would be entertaining clients in your new job;
- Volunteer work will demonstrate the seriousness of your character and commitment to the
welfare of your community.
 Transition to professional from personal:
- After sharing a few interesting personal aspects of your background, you can transition to
sharing some key professional skills that would help you to add value if you were hired for
your target job;
- Consider using phrases like "in addition to those interests and passions, my professional life
is a huge part of who I am, so I'd like to talk a bit about some of the strengths which I would
bring to this job."
 Share your expertise:
- Make a list of your strengths before you go into the interview, so you know what you will
share. Look at the job description and match it with your skills. Then share the top few skills
which make you an ideal candidate for the job;
- At first, you should only mention the asset and allude only briefly to some proof of how you
have tapped it to your advantage. For example, you might say that you love to give
presentations and that has helped you to generate lots of leads at sales dinners for
prospective clients;
- Later in the interview, you will want to be more specific and detailed in discussing situations,
interventions and results flowing from your strengths.
1.2. Example
 My name is Trung. Currently I am a 4th year student of national economic university, my major
at school is auditing.
 I have a great interest in making new friends and joining social events. In the first 2 years in the
university, I worked for a NGO named AIESECs Hanoi. We organized many camps for Vietnamese
youngsters and international students to develop soft skills and discuss about global youth issues.
These 2 years helped me build a lot of friendships, even with the international students from
many different countries.
 Besides, working through lots of projects helped me develop some working skills such as
effective communication, team-work and leadership. Moreover, the position that I took charged
was finance executive, which also made me improve numerical skills like analyze numbers from
data, build and manage budgets for projects. I believe that these working skills are really
important. Specially, when I will become an auditor in the future.
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 In order to become an outstanding auditor in the future, I worked really hard both inside and
outside the university. Hence, with my effort and careful preparation, I believe that I am a
potential candidate for the audit intern position of KPMG.
2. What is your greatest strength?

 Describe the skills and experience that you have which directly correlates with the job you are
applying for:
- Be prepared to answer by making a list of the qualifications mentioned in the job posting;
- Then, make a list of your skills that match those listed. This list can include education or
training, soft skills, hard skills, or past work experiences;
- Narrow your list of skills down to 3 - 5 particularly strong skills;
- Next to each skill, note an example of how you have used that strength in the past.
 Sharing strengths that match the qualifications the company is seeking:
- Incorporate these power words that help make a good impression into your responses;
- Stay focused on a couple key strengths that relate directly to the position and the company;
- A focused, relevant answer with one or two examples will impress your interviewer.
 Avoid being too humble:
- You should be comfortable articulating what makes you an ideal candidate;
- Creating a list of your strengths (as they relate to the job) will help you answer this question
with confidence.
2.2. Example
 My first strength is the firm fundamental knowledge of auditing which I gained at school.
Furthermore, I am also studying to get ACCA qualification and already passed some papers such
as f2, f3 and f8. This foundation can be the good start for me to work in the accountancy firms.
 The second strong point that I want to mention is the ability of working under high pressure.
Since I was in the second year of university, I joined in an NGO named AIESEC, the time of working
here helped me break my original limitation. I and my teammates experienced many times of
staying up late to work in order to reach the goals and deadlines. I believe that this point can
help me adapt fast and easily with the working environment when I join the company.
 Besides technical knowledge and soft skills, I also build myself a bunch of useful hard skills such
as working with excel and word. Specially, I can use excel in an advance level with hot keys (use
excel without mouse) and some technical functions which can boost up my performance and
save time when I work as an auditor in the future.
3. What is your greatest weakness?

 Discuss non-essential skills:
- Analyze the key skills and strengths required for the position you are interviewing for and
then come up with an honest shortcoming which is not essential for success in that job.
 Mention skills you have improved:
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- Discuss skills that you have improved upon during your previous job, so you are showing the
interviewer that you can make improvements when necessary;
- You can sketch for employers your initial level of functioning, discuss the steps you have
taken to improve this area, and then reference your current, improved level of skill.
 Turn a negative into a positive:
- Turn a negative into a positive. For example, a sense of urgency to get projects completed or
wanting to triple-check every item in a spreadsheet can be turned into a strength.
3.2. Example
 I used to like to work on one project to its completion before starting on another, but I've learned
to work on many projects at the same time, and I think it allows me to be more creative and
effective in each one.
4. Why should we hire you?

 Make a list of the requirements for the position, including personality traits, skills, and
qualifications. Then, make a list of the qualities you have that fit these requirements:
- For each quality, think of a specific time that you used that trait to achieve something at
work;
- For example, if you list that you are a “team player,” think of a time in which your ability to
work well on a team resulted in a successfully completed project;
- Don’t forget to think beyond the job description and consider which of your skills and
accomplishments make you a better candidate than the competition.
 Keep it concise:
- Select one or two specific qualities from the list you created to emphasize in your “sales
pitch”;
- Begin by explaining what you believe the employer is looking for, and how you fulfill that
need;
- Be prepared to adapt to new information, if the interviewer indicates that another quality or
skill is more valuable to the organization.
 Focus on your uniqueness:
- Focus on one or two qualities you possess that are different from what other interviewees
might offer, or are more difficult to find in candidates generally;
- For example, if you are very experienced with a certain skill that the job requires, say so. This
is your chance to tell the interviewer why you would be an invaluable employee.
4.2. Example
 Firstly, I have a consistent orientation with auditing career. Since both of my academic
background and personal background support fully for me to become a future auditor.
Furthermore, I also proactively research how a life of an auditor would be by joining workshops
by big 4 firms and talk to many audit seniors in accountancy firms. Hence, I can ensure that I am
really determined to become an auditor.
 Secondly, I believe my technical knowledge and working skills are adequate to fulfill this position.
Since I had 2 years working in an international organization and 1 year collaborating with a
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multiple national company (Unilever), my skills was improved a lot. I can use English language
fluently, even give presentation or public speaking. Besides, working through a lot of projects
help me build an analytical mindset, which means I have a habit of finding the reason behind
numbers and evaluate them.
 Finally, as I mentioned before that I had experience of working for international organization and
business, I found that your company and those institute I joined both share the same culture and
values. Hence, I am confident to say that I can fit with your company not only professional but
also personally aspect.
5. What other companies are you interviewing with?”

 Tell the truth:
- Either you do or do not have other interviews with other companies, tell the truth;
- If you have other interviews with the competitors, give some reasons why you apply for more
than one company;
- After that, you can give a priority method you want to use to choose where to work in case
you received offers from more than one firms.
5.2. Example
 Besides KPMG, I also apply for several firms such as EY, PwC and Deloitte because I want to
maximize my chance to get in big 4. However, I did research about all the firms in big 4 before
applying and found that KPMG is the most suitable company to me since the culture and values
here fit me the most. Hence, in case I get offers from KPMG and other firms, I still choose KPMG
as the first choice.
6. Why do you want this job?

 Research the company ahead of time:
- Interviewers will be listening for a response that shows you've done research on the
company;
- Make sure you know some basic information about both the company and the job;
- You might want to read some recent articles on the company to get a sense of their current
goals and projects. Also be sure to reread the job posting;
- You can mention specific aspects of the company and position that appeal to you.
 Be specific about why you are a good fit:
- Be specific about what makes you a good fit for this role;
- Make a list of the requirements of the job (as explained in the job listing).
- Note which requirements fit your skills and experience;
- Highlight a few of your abilities that qualify you for the job.
 Emphasize what you can contribute:
- Your answer should also emphasize what you can contribute;
- Mention any skills or work experience that makes you a unique, strong candidate for the job;
- If possible, use numbers to express how you can add value to the company.
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 Avoid reasons that focus on you:

- Even if it's true, do not mention salary, hours, or commute as the primary reasons you want
the job;
- Remember that you want to focus on how you can benefit the company, not how the
company or job can benefit you.
6.2. Example
 As I researched about EY. I know that your company recently has engaged more Chinese clients.
I find that this opportunity fits me a lot since I have spent more than 5 years to study Chinese. I
can use Chinese fluently in writing and speaking. Furthermore, I also have experience as a tour
guide for Chinese tourists when I was a student. I believe that with my technical knowledge about
auditing and ability of using Chinese, I can contribute well to your company’s projects with
Chinese clients.
7. Tell me about your career goals
 Start with short term goals, then move to the long term:
- You probably have a good sense of your short term goals, such as getting a job with an
employer like the one you are interviewing for;
- Start by describing these goals, then move to more long term plans.
 Start with short term goals, then move to the long term:
- Listing goals is not going to make a strong answer;
- You also want to (briefly) explain steps you will take to achieve those goals.
- For example, if you want to take on a management role, explain the steps you have taken,
or will take, to become a manager;
- Perhaps you are developing your leadership skills through running group projects, or you
plan to attend a series of leadership conferences.
 Focus on the employer:
- Even though this question is about you, you want to convey that you won’t abandon the
employer anytime soon;
- Focus on how you will add value to the company through the achievement of your own goals.
 Don’t get too specific:
- While you want to present clear goals, do not get into too many details.
- For example, if you know you want to work for a particular company in a particular position
(not the company or position you’re interviewing for), don’t share this with an employer;
- Emphasize more general goals, such as taking one particular responsibilities. This allows you
to balance clear aims with a flexible attitude.
7.2. Example
 In the short term, I hope to work as an assistant auditor for a company such as yours; working as
an assistant auditor I believe in will prepare me to hopefully take on expanded responsibilities in
the future, as these become available.
 In the long future, my goal is to complete CPA Vietnam qualification and become a specialist in
auditing field. Besides, I also want to develop my managerial skills to become a manager in
auditing field. In order to achieve these goal, I will prepare myself for this goal by taking on
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leadership positions in team projects, and developing my professional career through attending
leadership conferences, such as the one put on annually by your company. I also have a plan for
studying ACCA qualification, and then I will transfer it into CPA Vietnam qualification.
8. How do you evaluate success?

 Focus on the job:
- In your answer, you should be cognizant of the type of job you're applying for;
- Do your research before the interview: browse the company's website, research their
presence in the news and media, and see if you can find any information about their mission
statement;
- This is the easiest and quickest way of learning how they themselves evaluate success.
- Your goal should be to mirror their definition of success with your own statement. Here's
how to research a company;
- If there's an area where your values overlap with the company's, then make sure to
emphasize that in the interview.
8.2. Example
 For me, success is about doing my job well. I want to be recognized as someone who always does
their best and tries their hardest to make my goals.
 I evaluate success based on not only my work, but the work of my team. In order for me to be
considered successful, the team needs to achieve both our individual and our team goals.
 I evaluate success based on outcomes. It's not always the path you take to achieve success that
matters. Rather, it's quantifiable results.
 I tend to view success incrementally. As someone who is invigorated by new, complex challenges,
I never want to find myself in a situation where I feel like there is nothing left to learn or achieve.
If, over the course of my employment, I can leave work each evening satisfied that I’ve learned
something new or useful, then this counts as success to me.
 For me, success comes from knowing that I’ve contributed in a significant way to finishing a
challenging team project within established deadlines and quality standards.
9. What are you passionate about?

 Your response doesn't need to be focused on work, but it should demonstrate your ability to
devote yourself to a particular task or hobby about which you are passionate;
 You don't have an obligation to share it with an employer. Instead, you could share something
else that you're interested in doing and give a simple response about that;
 Provide some examples of how you have dedicated yourself to that interest or activity:
- You can also mention goals (such as training for a race, if running is your passion), which
gives interviewers a sense of your long-term thinking and perseverance.
 Be sure that what you share isn't something that could potentially cut into your working hours.
9.2. Example
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 I'm passionate about painting. I take an evening art class once a week and try to find time each
weekend to paint. Painting is a good way for me to relax after a busy week.
 I'm passionate about making a difference. When I'm involved with a project at work, I want to
do my best to achieve success. I feel the same way about what I do in my personal life.
 I'm passionate about baking: I love the process of researching new recipes, and testing them out.
I've been writing up my experiences baking for the past three years, and every year, I host a
massive cookie swap around the holiday time with friends.
10. Do you have any questions for me?

 Clarify your uncertainties:
- Your first step should be to ask anything about the position that hasn’t been covered in the
interview.
 Remove their doubts:
- Next, ask questions that will allow you to talk about any strengths or accomplishments you
didn’t cover in the interview, or to make sure that you are sharing with the interviewer the
same types of qualities they are looking for.
 Uncover red flags:
- This can be tricky to do tactfully, but asking questions about turnover, culture, and growth
opportunities during the interview process can prevent unpleasant surprises down the road.
 Get a view of the future:
- Asking questions about the growth of the company and its employees is a good idea for two
reasons;
- Ask what a company's goals are for the next five to ten years. It gives a good perspective on
what their values are and how you may or may not fit with a company.
 Build a relationship:
- When in doubt, ask the interviewer about himself or herself;
- Ask interviewers about their journey in their career, such as what field they were in before
and how it led to where they are now;
- People love talking about themselves… Plus, if you have similarities, it creates a bond
between you and them;
- Be careful to not get too personal, and pay attention to how the interviewer reacts.
 Wrap up:
- At the end of the interview, don’t forget to ask about next steps;
- First, reiterate that you’re interested in the position;
- Then ask the following non-presumptuous questions about what’s next in the hiring process.
10.2. Example
 What does a typical day look like?
 How will I be trained? How will my performance be reviewed?
 What are the skills and experiences you’re looking for in an ideal candidate?
 What attributes does someone need to have in order to be really successful in this position?
 What types of skills is the team missing that you're looking to fill with a new hire?
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 What is the company culture like?

 Can you tell me about the team I’ll be working with?
 Where is the last person who held this job moving on to?
 Where do you see this company in the next few years?
 What can you tell me about your new product or plans for growth?
 What training programs are available to your employees?
 How long have you been with the company?
 Why did you come to this company?
 Is there anything else I can provide you with that would be helpful?
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II. Technical questions:

1. Now let’s say a company sell a car for revenue of $70,000 at a cost of $50,000. What happen to 3
statements: balance sheet, income statement and cash flow statement?
1.1. Answering method:
 Firstly, respondents have to evaluate items of each statement affected by the adjustment:
- Income statement: cogs, gross profit, revenue and operating income;
- Cash flow statement: net change in cash;
- Balance sheet: inventory, cash and shareholders’ equity.
 Then, they have to evaluate the increase and decrease of items, which is shown clearly in the
example answer below.
1.2. Example:
 Income statement: revenue is up by $70,000 and cogs is up by $50,000 so gross profit is up by
$20,000 and operating income is up by $20,000 as well. Assuming a 20% tax rate, net income is
up by $16,000.
 Cash flow statement: net income at the top is up by $16,000 and inventory has decreased by
$50,000 (since we just manufactured the inventory into real car), which is a net addition to cash
flow – so cash flow from operations is up by $66,000 overall. These are the only changes on the
cash flow statement, so net change in cash is up by $66,000.
 Balance sheet: cash is up by $66,000 and inventory is down by $50,000, so assets is up by $16,000
overall. On the other side, net income was up by $16,000 so shareholders’ equity is up by $16,000
and both sides balance.
2. Why is the income statement not affected by changes in inventory?

2.1. answering method:
 Respondents have to show their understandability of inventory:
- Definition: inventories are assets which are held for sale in the normal production and
business period; in the on-going process of production and business; raw materials, materials,
tools and instruments for use in the process of production and business or provision of
services (according to vas 02);
 Additionally, it would be better if they could indicate that there is no impact of inventory on
income statement. A clear explanation is shown below.
2.2. Example:
 In the case of inventory, the expense is only recorded when the goods associated with it are sold
– so if it’s just sitting in a warehouse, it does not count as a cost of good sold or operating expense
until the company manufactures it into a product and sells it. Subsequently, the income
statement is not impacted by the change of inventory.
3. How many types of calculation method for the value of inventory? What is the difference between
FIFO and LIFO?
 Respondents have to list four main calculation methods: the weighted average, the specific
identification, FIFO and LIFO and their definitions:
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- The weighted average: the value of each kind of inventories shall be calculated according to
the average value of each similar kind of goods at the beginning of the period and the value
of each kind of inventories purchased or manufactured in the period;
- The specific identification method: the specific identification method shall apply to
enterprises having a few goods items or stable and identifiable goods items;
- FIFO: the first-in, first-out method shall apply upon the assumption that the first inventories
purchased or manufactured is the first inventories delivered, and the inventories left at the
end of the period are those purchased or produced at a time close to the end of the period;
- LIFO: the last-in first-out method shall apply upon the assumption that the most recently
purchased or manufactured inventories are delivered first, and the inventories left at the
end of the period are those which are purchased or produced earlier.
 For the second question, they need to illustrate the difference in calculating the value of inventory
of these two methods:
- FIFO: use the value of the oldest inventory addition of cogs;
- LIFO: use the value of the most recent inventory addition of cogs.
3.2. Example:
 Let’s say your starting inventory balance is $100 (10 units valued at $10 each). You add 10 units
each quarter for $12 each in q1, $15 each in q2, $17 each in q3, and $20 each in q4, so that the
total is $120 in q1, $150 in q2, $170 in q3, and $200 in q4. You sell 40 of these units throughout
the year for $30 each. In both LIFO and FIFO, you record 40 * $30 or $1,200 for the annual
revenue.
 The difference is that in LIFO, you would use the 40 most recent inventory purchase values –
$120 + $150 + $170 + $200 – for the cost of goods sold, whereas in FIFO you would use the 40
oldest inventory values – $100 + $120 + $150 + $170 – for cogs. As a result, the LIFO cogs would
be $640 and FIFO cogs would be $540, so LIFO would also have lower pre-tax income and net
income. The ending inventory value would be $100 higher under FIFO and $100 lower under
FIFO.
 In general, if inventory is getting more expensive to purchase, LIFO will produce higher values for
cogs and lower ending inventory values and vice versa if inventory is getting cheaper to purchase.
4. How many types of financial statement a company need to provide in its financial report? Which
one do you choose to assess the company health?
 Initially, respondents have to list 4 statements: statement of financial position, income statement,
cash flow statement and statement of changes in equity:
- Balance sheet: presents the financial position of an entity at a given date. It is comprised of
three main components: assets, liabilities and equity.
 Explain why cash flow statement is the most important one:
- You would use the cash flow statement because it gives a true picture of how much cash the
company is actually generating, independent of all the non-cash expenses you might have.
And that’s the #1 thing you care about when analyzing the overall financial health of any
business – its cash flow.
4.2. Example:
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 Cash can come from both internal and external sources, and the statement of cash flow helps
companies and investors separate and observe the differences and extent of the cash inflows
and outflows. Internal, as opposed to external cash sources, provide a company with successful
attributes and assurances that include:
- Preventing and monitoring company debt.
- Preventing unnecessary expenditures from interest, late payment penalties and debt costs.
- Ensuring timely investment and cash available for investment opportunities.
- Ensuring timely payment of expenses and debts.
- And most importantly – ensuring a level of regular business income without relying on
outside investment or cash borrowing.
 Effectively managing and monitoring cash flows serves many purposes. The most significant
reason is to provide owners and managers insight into the company’s cash position. This
knowledge better equips management to make informed decisions about regular business
operations, the need for further investment in the business, and capital from equity or debt
partners. Cash management is something most businesses of all sizes struggle to perfect. While
the cash flow statement is by no means the only method of monitoring cash flows, it is an integral
part of the reporting statements and should not be overlooked by the financial statement users.
5. How long does it usually take for a company to collect its accounts receivable balance?
 Respondents have to show their deep understandability about accounts receivable:
- Definition: a current asset resulting from selling goods or services on credit (on account);
- How long it would be taken: from 30 to 60 days.
5.2. Example
 Generally, the accounts receivable days are in the 30 to 60 days range, though it’s higher for
companies selling high-end items and it might be lower for smaller, lower transaction value
companies.
6. What’s the difference between accounts receivable and deferred revenue?

 Giving the definition of accounts receivable and deferred revenue:
- Definition: accounts receivable is a current asset resulting from selling goods or services on
credit (on account), whereas deferred revenue is not yet revenue. It is an amount that was
received by a company in advance of earning it.
 Compare and contrast them to show the difference:
- Difference: accounts receivable has not yet been collected in cash from customers, whereas
deferred revenue has been.
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6.2. Example
 Accounts receivable has not yet been collected in cash from customers, whereas deferred
revenue has been. Accounts receivable represents how much revenue the company is waiting
on, whereas deferred revenue represents how much it has already collected in cash but is waiting
to record as revenue.
7. What is the difference between capital leases and operating leases?

 Respondents have to show their understandability by giving the definition of capital leases and
operating leases:
- Operating leases are used for short-term leasing of equipment and property, and do not
involve ownership of anything. Operating lease expenses show up as operating expenses on
the income statement;
- Capital leases are used for longer-term items and give the lessee ownership rights; they
depreciate and incur interest payments, and are counted as debt.
 After that, compare and contrast these two kinds of leases;
 A lease is a capital lease if any one of the following 4 conditions is true:
- If there’s a transfer of ownership at the end of the term;
- If there’s an option to purchase the asset at a bargain price at the end of the term;
- If the term of the lease is greater than 75% of the useful life of the asset;
- If the present value of the lease payments is greater than 90% of the asset’s fair market value.
7.2. Example:
 To differentiate capital leases and operating leases, it would be appropriate to define both of
them. Operating leases are used for short-term leasing of equipment and property, and do not
involve ownership of anything. Operating lease expenses show up as operating expenses on the
income statement. On the other hand, capital leases are used for longer-term items and give the
lessee ownership rights; they depreciate and incur interest payments, and are counted as debt.
Subsequently, the difference is based on the conditions of a capital leases:
- If there’s a transfer of ownership at the end of the term.
- If there’s an option to purchase the asset at a bargain price at the end of the term.
- If the term of the lease is greater than 75% of the useful life of the asset.
- If the present value of the lease payments is greater than 90% of the asset’s fair market value.
8. What are deferred tax assets/liabilities and how do they arise?

 Define deferred tax assets/liabilities:
- Deferred tax liabilities arise when you have a tax expense on the income statement but
haven’t actually paid that tax in cold, hard cash yet. Deferred tax assets arise when you pay
taxes in cash but haven’t expensed them on the income statement yet.
 The difference between their way arising based on tax purposes:
- They arise because of temporary differences between what a company can deduct for cash
tax purposes vs. What they can deduct for book tax purposes.
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8.2. Example
 Deferred tax assets/liabilities arise because of temporary differences between what a company
can deduct for cash tax purposes vs. What they can deduct for book tax purposes. While deferred
tax liabilities arise when you have a tax expense on the income statement but haven’t actually
paid that tax in cold, hard cash yet, deferred tax assets arise when you pay taxes in cash but
haven’t expensed them on the income statement yet. They’re most common with asset write-
ups and write-downs in M&A deals – an asset write-up will produce a deferred tax liability while
a write-down will produce a deferred tax asset.
9. Walk me through the major items in shareholders’ equity.

 You have to show your knowledge about items of shareholders’ equity: common stock, retained
earnings, additional paid in capital, treasury stock and accumulated other comprehensive income;
 Define each of the item.
9.2. Example
 Common stock – simply the par value of however much stock the company has issued.
 Retained earnings – how much of the company’s net income it has “saved up” over time.
 Additional paid in capital – this keeps track of how much stock-based compensation has been
issued and how much new stock employees exercising options have created. It also includes how
much over par value a company raises in an IPO or other equity offering.
 Treasury stock – the dollar amount of shares that the company has bought back.
 Accumulated other comprehensive income – this is a “catch-all” that includes other items that
don’t fit anywhere else, like the effect of foreign currency exchange rates changing.
10. What procedures do you think are important for testing cash account?
 Firstly, applicants need to analyze main assertion of cash account: existence, completeness,
valuation, cut-off:
- Existence: test for the existence of cash in account by checking the cash count minute and
bank statement;
- Completeness: test whether cash is sufficient or not. In another way, test the balance of cash
account;
- Valuation: test whether foreign currencies are recorded properly based on the exchange rate
or not in the financial report in domestic currency.
 Then, we have to assess the procedure corresponding to each assertion:
- Observation and reconcile procedure to test existence and completeness;
- Send confirmation letter procedure to test completeness;
- Revaluation procedure to test the true and fair valuation of foreign currencies;
- Cut-off procedure to test the record of transactions in the right time.
10.2. Example
15
 Existence and completeness: need to reconcile the cash count minute with Leadsheet, general
ledger (GL) with Leadsheet and Leadsheet with bank statement. Furthermore, for cash at bank,
it would be essential to send confirmation letters to banks.
 firstly, auditor need to use overall analytical review procedure (OARP) to note unusual items.
 Roll forward and roll backward: roll backward is used for events after 31.12, which is opposed to
roll backward procedure.
 Valuation: the revaluation procedure is appropriate to use for foreign currencies (1113). It helps
auditor exchange foreign currencies to VND for financial report.
 Cut-off: selecting all transactions at the end of this year and at the beginning of next year, then
reconcile with bank statements.
11. What are the purpose of auditing? How many types of auditing opinions are there?
 Purpose:
- To provide an independent opinion to the shareholders on the truth and fairness of the
financial statements.
 Types of auditing opinions:
- Qualified opinion;
- Adverse opinion;
- Disclaimer of opinion;
- Give definition for each type of auditing opinion.
11.2. Example
 The purpose of auditing is to provide an independent opinion to the shareholders on the truth
and fairness of the financial statements.
 There are 3 types of auditing opinions:
 Qualified opinion: 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 the auditor is unable to obtain sufficient appropriate audit evidence on
which to base the opinion, but concludes that the possible effects on the financial statements of
undetected misstatements, if any, could be material but not pervasive.
 Adverse opinion: after having obtained enough good audit evidence, the auditor concludes that
misstatements, individually or when grouped with other misstatements, are both material and
pervasive to the financial statements.
 Disclaimer of opinion: the auditor is unable to obtain sufficient appropriate audit evidence on
which to base the opinion, and concludes that the possible effects on the financial statements of
undetected misstatements, if any, could be both material and pervasive.
12. How do the 3 statements link together?
16

 Mention the names of 3 statements;
 Analyze the connections between these statements.
12.2. Example
 The 3 statements are: income statement, balance sheet and Cash Flow Statement.
 The bottom line of the income statement is net income. Net income links to both the balance
sheet and cash flow statement.
 In terms of the balance sheet, net income flows into stockholder’s equity via retained earnings.
Retained earnings is equal to the previous period’s retained earnings plus net income from this
period less dividends from this period.
 In terms of the cash flow statement, net income is the first line as it is used to calculate cash
flows from operations. Also, any non-cash expenses or non-cash income from the income
statement (i.e., depreciation and amortization) flow into the cash flow statement and adjust net
income to arrive at cash flow from operations.
 Any balance sheet items that have a cash impact (i.e., working capital, financing, PP&E, etc.) Are
linked to the cash flow statement since it is either a source or use of cash. The net change in
cash on the cash flow statement and cash from the previous period’s balance sheet comprise
cash for this period.
13. What are the criteria to recognize revenue?

 Mention the sources of sales recognition (VAS14);
 Describe 5 criteria.
13.2. Example
 All the criteria of sales recognition are stated in VAS 14.
 The enterprise has transferred the majority of risks and benefits associated with the right to own
the products or goods to the buyer.
 The enterprise no longer holds the right to manage the goods as the goods owner, or the right
to control the goods.
 Turnover has been determined with relative certainty.
 The enterprise has gained or will gain economic benefits from the good sale transaction.
 It is possible to determine the costs related to the goods sale transaction.
17
14. Let’s say Apple is buying $100 worth of new iPad factories with debt. How are all 3 statements
affected at the start of “Year 1,” before anything else happens?
 Name 3 statements: Cash Flow Statement, Balance Sheet and Income Statement;
 Analyze how these 3 statements would change:
- Income Statement: No change;
- Cash Flow Statement: The addition investment in factories would show up as a net reduction.
The additional $100 worth of debt raise would show up as an addition;
- Balance Sheet: There is an additional $100 worth of factories in the Plants, Property and
Equipment.
14.2. Example
 At the start of “Year 1,” before anything else has happened, there would be no changes on
Apple’s Income Statement (yet).
 On the Cash Flow Statement, the additional investment in factories would show up under Cash
Flow from Investing as a net reduction in Cash Flow (so Cash Flow is down by $100 so far). And
the additional $100 worth of debt raised would show up as an addition to Cash Flow, canceling
out the investment activity. So the cash number stays the same.
 On the Balance Sheet, there is now an additional $100 worth of factories in the Plants, Property
& Equipment line, so PP&E is up by $100 and Assets is therefore up by $100. On the other side,
debt is up by $100 as well and so both sides balance.
15. Can you give examples of major line items on each of the financial statements?
 Name the 3 statements: Income Statement, Balance Sheet and Cash Flow Statement;
 Give the examples of major line items on each statements:
- Income Statement: Revenue, COGS, Net income…
- Balance Sheet: Cash, Account receivable, inventory…
- Cash Flow Statement: Net Income; Depreciation & Amortization; Stock-Based Compensation;
Changes in Operating Assets & Liabilities
15.2. Example
 The 3 statements are Income Statement, Balance Sheet and Cash Flow Statement;
 Income Statement: Revenue; Cost of Goods Sold; SG&A (Selling, General & Administrative
Expenses); Operating Income; Pretax Income; Net Income;
 Balance Sheet: Cash; Accounts Receivable; Inventory; Plants, Property & Equipment (PP&E);
Accounts Payable; Accrued Expenses; Debt; Shareholders’ Equity;
 Cash Flow Statement: Net Income; Depreciation & Amortization; Stock-Based Compensation;
Changes in Operating Assets & Liabilities; Cash Flow From Operations; Capital Expenditures; Cash
Flow From Investing; Sale/Purchase of Securities.
16. If I were stranded on a desert island, only had 1 statement and I wanted to review the overall
health of a company – which statement would I use and why?
 Give the answer: Cash Flow Statement;
18
 Give explanation:
- It gives a true picture of how much cash the company is actually generating, independent of
all the non-cash expenses you might have.
16.2. Example
 You would use the Cash Flow Statement.
 Because it gives a true picture of how much cash the company is actually generating,
independent of all the non-cash expenses you might have. And that’s the #1 thing you care about
when analyzing the overall financial health of any business – its cash flow.
17. If depreciation is a non-cash expense, why does it affect the cash balance?
 Depreciation is tax-deductible;
 Taxes are a cash expense, depreciation affects cash by reducing the amount of taxes you pay.
17.2. Example
 Although Depreciation is a non-cash expense, it is tax-deductible. Since taxes are a cash
expense, Depreciation affects cash by reducing the amount of taxes you pay.
19

Individual Interview: SAPP Academy 5 Floor, No.54, Le Thanh Nghi Street, Ha Noi Tel 096 972 94 63 Sapp - Edu.vn

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Individual Interview: SAPP Academy 5 Floor, No.54, Le Thanh Nghi Street, Ha Noi Tel 096 972 94 63 Sapp - Edu.vn

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2. What is your greatest strength?

3. What is your greatest weakness?

4. Why should we hire you?

5. What other companies are you interviewing with?”

6. Why do you want this job?

 Avoid reasons that focus on you:

8. How do you evaluate success?

9. What are you passionate about?

10. Do you have any questions for me?

 What is the company culture like?

II. Technical questions:

2. Why is the income statement not affected by changes in inventory?

6. What’s the difference between accounts receivable and deferred revenue?

7. What is the difference between capital leases and operating leases?

8. What are deferred tax assets/liabilities and how do they arise?

9. Walk me through the major items in shareholders’ equity.

12. How do the 3 statements link together?

12.1. Answering method

13. What are the criteria to recognize revenue?

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