Interview of Ford Rhodes Sidat Hyder

paradigm · 04-22-2010, 12:24 AM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by mdanishraza
 <blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by paradigm
 @mdanishraza, so u were rejected too or did he say they will call ?
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rejected...and there is no waiting list..only rejection list (
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now I'm worried. I wasn't rejected nor selected. I was told they will let me know in 2-3 days, 2 days gone still nothing (

kamranACA · 04-22-2010, 12:28 AM

A.A.

This is a very delicate issue and there is a thin line to keep the things within the limits of auditors' role while making recommendations in his ML.

The recommendations where auditor is not supposed to fall under the "Management Role" can be given with reference to particular observations emanating from such audit. Auditor cannot engage his-self in management functions and decisions and simply suggesting something does not bring him under these brackets.

For example auditor cannot design an IT system for its audit client; he cannot even sale and/or implement a system at audit client even if he has such a system for sales to his consultancy clients. Yet if he finds that IT systems already in place are outdated and are not meeting the reporting and information requirements he can highlight such matter in his communications and can also recommend as to which generally available ERPs or systems would be more suitable for the organization on which managment can ponder on for the smooth operations and meeting of the information needs. Even by doing so, he cannot offer his own ERP or system for sales to the audit client unless he dis-associates his-self from such audit engagement.

For the time being, in Pakistan such strict directives are more emphasized for listed sector only.

So, there is a difference between advising in the capacity of an auditor and in the capacity of a consultant or advisor. This thin line has to be watched carefully.

Regards,

A.A · 04-22-2010, 12:28 AM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by idiot.boy
 @ 1st of All , we should focus on what the question was !! Partner asked " if the business is experiencing losses then how would you recommed the company to minimize losses "

For sure this is not the job of Auditor to RECOMMEND the business how to minimize losses, so either he was asking in syntax of Consultancy or Being part of management itself !!

Where as Deffered Tax is concerned regarding minizing the losses, the concept of deffered tax ASSETS come in role play.. They generally arise where tax relief is provided after an expense is deducted for accounting purposes, eg a company may incur tax losses and be able to "carry forward" losses to reduce taxable income in future years .. a deferred tax asset should be recognised if and only if the management considered that there will be sufficient future taxable profit otherwise the value of tax asset has been IMPAIRED !!

So the answer to question was Deffered TAX ASSET !! It's not a problem presuming that the company will be making profits to use up the losses, but it does mean that from an accounting point of view (not from a cash viewpoint or anything 'real') the numbers are already taking into account the future benefits of the tax losses.

According to the Standard IAS 12 , it says that TAX ASSET is recognized for deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilised...

To conclude , i would say , PARTNER QUESTION WAS " OUT OF CONTEXT " !! D

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Thanks for your reply.I agree.Either the question was in the context of audit or it was not,in which case,deferred tax is not the only obvious reply.

idiot.boy · 04-22-2010, 12:34 AM

@ KamranACA = > I guess u already know that Sarbanes-Oxley Act of 2002, significantly restricts the non-audit tax services that accountants can provide to their audit clients !!

A.A · 04-22-2010, 12:34 AM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by kamranACA
 A.A.

This is a very delicate issue and there is a thin line to keep the things within the limits of auditors' role while making recommendations in his ML.

The recommendations where auditor is not supposed to fall under the "Management Role" can be given with reference to particular observations emanating from such audit. Auditor cannot engage his-self in management functions and decisions and simply suggesting something does not bring him under these brackets.

For example auditor cannot design an IT system for its audit client; he cannot even sale and/or implement a system at audit client even if he has such a system for sales to his consultancy clients. Yet if he finds that IT systems already in place are outdated and are not meeting the reporting and information requirements he can highlight such matter in his communications and can also recommend as to which generally available ERPs or systems would be more suitable for the organization on which managment can ponder on for the smooth operations and meeting of the information needs. Even by doing so, he cannot offer his own ERP or system for sales to the audit client unless he dis-associates his-self from such audit engagement.

For the time being, in Pakistan such strict directives are more emphasized for listed sector only.

So, there is a difference between advising in the capacity of an auditor and in the capacity of a consultant or advisor. This thin line has to be watched carefully.

Regards,

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Thanks again for your reply Sir.I understand.What would have been your answer to the partner's question if you had been in the candidate's shoes?I think many future candidates would like to know that.

faizicapri · 04-22-2010, 12:57 AM

i 100% agree with kamran bhai this question could be answered in many ways.
@haroun
yes man u r right Deferred tax is not only the answer to that question.........dont know exactly what the partner was trying to ask..
and yes audit trainee are sent with audit professionals and supervisors becuase audit trainees alone can not do any thing unless they get some experience.

harounkhan · 04-22-2010, 01:23 AM

@ faizicapri, thanks for the answer. That is exactly what I told him. That no matter how much knoweledge I have you don't send a trainee to carry out the audit. You send professionals. The fact he didn't answer my question explains that I got him there. It was pretty obvious the partner was just making excuses of not hiring me.

kamranACA & idiotboy, very interesting answers. See, this question could be answered in 100 ways because deferred tax asset is not the only way to minimise losses. But the partner shrugged off my answers because I didn't give him the answer he was looking for. Unbelievable attitude !!!!

@ paradigm, I am surprised that you are on the waiting list. Because they either hire you on the spot or reject you. Would be interesting to know what becomes of you. Just call the HR guy Farooq and ask him.

kamranACA · 04-22-2010, 01:52 AM

Idiot.boy

ICAP has issued a very clear directive which limits non audit services to audit clients.

This has been done pursuantto IFAC pronouncment/code.

Although Surbanes-Oxley Act is very explicit yet it is not mandatory (as it is) for Pakistan based practices.

Regards,

Kamran

masroorahmed · 04-22-2010, 03:02 AM

salams .... yaar i ve nt been caled fr second interview .... are there still chances fr me to be caled ...?plz guys help me out ... i m nt caled yet shud i contact them to comfirm my status? if yes wats EnYs contact number nd ext if any...

@haroon khan nd paradigm............ one more thng is tht my ptcl number ve been changed nd unfortunately my previous number haz been maintained in thier record .. haaroon khan nd paradigm how wud u ve been caled fr 2nd interview eithr by mode of ptcl ,cell num, or sms?
it ll tak 5 mints 4 u guys to reply me ,,, plz

saad_srk · 04-22-2010, 04:04 AM

@ masroor they call u on your cellphone if u have mentioned your cellphone number in the form......................... and a i would also like to mention that a boy was called for an interview with the partner 10 days back and he was not asked a single technical questions.he was just asked general question but the partner said that he would have been hired if he was acca qualified.the boy said that he just have 2 paprs to go but the partner told him that they want to hire affiliates only and he was not selected even though he cleared the test...... so the point is that u need to clear the test plus u need to have acca affiliate status....only then they will hire u......anyways haroun and paradigm dont lose hope....... jo hota hai achey ke liye hota hai.

paradigm · 04-22-2010, 04:58 AM

Masroor, 35674581, this is the number where i got interview call from, call them up and ask for HR dept. got all calls on my cellphone.

Saad, I know many people working as audit trainees in FRSH who haven't completed their ACCA part 2 or Module D from ICAP. the mail we got for recruitment from ACCA clearly mentioned that their requirement is ACCA fundamental cleared and NOT Affiliate, so i dont know why they are even calling people for 2nd interview and rejecting them on that basis. i mean if a person doesnt have the required qualification ur looking for then whats the point of going through the whole exercise and wasting their own and other persons time.

harounkhan · 04-22-2010, 05:08 AM

Saad, I think you are wrong brother. Because E&Y are indeed hiring ACCA students. A guy who had an interview right before mine cleared 9 ACCA papers and he got the articleship. The boy you are talking about must have a referrence, that is why he was rejected. They are inducting students, not just affiliates.

eshah · 04-22-2010, 05:23 AM

@ Harounkhan. Were u interviewed at the office in Lahore?

harounkhan · 04-22-2010, 05:49 AM

Eshah, No !!! In Karachi !!!

eshah · 04-22-2010, 06:01 AM

Oh right. And seriously your reply has got me tensed. I am a P level student too and was planning to go into E and Y.