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Top 25 CA Interview Questions and How to Answer Them
Cracking a Chartered Accountant (CA) interview can be challenging, especially when you’re unsure of what to expect. Whether you’re a fresher or an experienced CA professional, preparation is key. Interviewers are looking for more than just technical knowledge—they want confident, clear-thinking individuals with a strong understanding of practical finance and business ethics.
Here are the top 10 CA interview questions, along with helpful tips on how to answer them simply and impressively.
Tell me about yourself.
Why they ask it: To understand your background, personality, and confidence level.
How to answer: Give a short, professional summary of your education, experience, and career goals. Focus on CA-related achievements.
Example: I’m a qualified Chartered Accountant with a strong foundation in audit and taxation. I completed my articleship at XYZ & Co., where I handled statutory audits and GST filings. I enjoy solving financial problems and aim to specialize in corporate finance.
Why did you choose to become a CA?
Why they ask it: To check your motivation and passion for the profession.
How to answer: Talk about your interest in finance, problem-solving, and how CA matches your career goals.
Example: I’ve always been good with numbers and analysis. I chose CA because it’s a challenging and respected profession that opens doors to various industries.
What were your key responsibilities during articleship?
Why they ask it: To understand your practical exposure.
How to answer: Briefly describe the types of work you did and the skills you learned.
Example: During my articleship, I worked on statutory audits, tax audits, and GST compliance. I also gained experience in client interactions, documentation, and financial analysis.
What are the recent changes in GST or Income Tax laws?
Why they ask it: To test if you stay updated with the latest changes in taxation.
How to answer: Mention a few recent updates and explain them simply.
Example: One major GST update was the change in the time limit for claiming ITC, which now must be done before 30th November of the following financial year. Also, faceless assessments in income tax are a recent trend to improve transparency.
Explain the difference between the assessment year and the financial year.
Why they ask it: To check your basic conceptual clarity.
How to answer: Keep it short and clear.
Example: The financial year is the year in which income is earned (1st April to 31st March), while the assessment year is the following year when that income is assessed and taxed.
What is deferred tax liability?
Why they ask it: To test your accounting and reporting knowledge.
How to answer: Give a clear definition with a simple example.
Example: Deferred tax liability arises when the taxable income is less than the accounting income due to timing differences. For example, using different depreciation methods in books and tax returns can lead to a deferred tax liability.
What is the difference between an internal audit and a statutory audit?
Why they ask it: To check your understanding of audit types and legal requirements.
How to answer: Give a clear comparison with practical relevance.
Example: An internal audit is conducted by a company’s audit team to improve internal processes and controls. A statutory audit is a legal requirement under the Companies Act and is done by an external auditor to verify the accuracy of financial statements.
How do you stay updated with recent changes in laws and accounting standards?
Why they ask it: To check if you are proactive in learning and development.
How to answer: Mention trusted sources and habits.
Example: I regularly follow ICAI updates, the GST and Income Tax websites, and financial news platforms. I also attend webinars and subscribe to newsletters for industry updates.
What is working capital, and why is it important?
Why they ask it: To test your grasp of liquidity and operations.
How to answer: Define clearly and explain its role.
Example: Working capital is the difference between current assets and current liabilities. A business needs to meet day-to-day expenses and maintain smooth operations.
Can you explain transfer pricing in simple terms?
Why they ask it: To assess your understanding of international tax compliance.
How to answer: Use a simple example.
Example: Transfer pricing refers to pricing transactions between related companies, like a parent company and its subsidiary. For example, if a company in India sells goods to its related company in Singapore, the price must be fair to avoid tax evasion.
What is the purpose of bank reconciliation?
Why they ask it: To see if you know routine accounting tasks.
How to answer: Be brief and accurate.
Example: Bank reconciliation ensures that the balance in the company’s books matches the bank statement. It helps detect errors, fraud, or unrecorded transactions.
What do you know about IND AS and how is it different from AS?
Why they ask it: To test your knowledge of financial reporting standards.
How to answer: Explain simply.
Example: IND AS is India’s version of IFRS, used by large and listed companies. It focuses more on fair value and substance over form, while the old Accounting Standards (AS) are more rule-based.
Tell me about a challenge you faced during articleship.
Why they ask it: To assess problem-solving and learning from experience.
How to answer: Describe the situation, action, and result.
Example: Once, during an audit, the client’s data was incomplete. I coordinated with their finance team and used alternate records to complete the audit on time. It taught me adaptability and teamwork.
How do you ensure accuracy in your work?
Why they ask it: To test your attention to detail and reliability.
How to answer: Share your personal methods.
Example: I use checklists, cross-verify entries, and take short breaks to stay focused. I also review my work or ask for a second check in critical tasks.
Explain the concept of capital budgeting.
Why they ask it: To evaluate your decision-making understanding.
How to answer: Give a definition with techniques used.
Example: Capital budgeting is the process of deciding where to invest long-term funds. Techniques include Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period analysis.
What is TDS and how is it applicable?
Why they ask it: To see if you understand tax compliance.
How to answer: Explain its purpose and common scenarios.
Example: TDS stands for Tax Deducted at Source. It’s deducted by the payer when making payments like salary, rent, or contractor fees, and is deposited with the government as advance tax.
How do you handle confidential financial data?
Why they ask it: To evaluate your ethical standards.
How to answer: Show professionalism.
Example: I understand the importance of confidentiality. I follow ethical practices and never share client data without authorization. I ensure sensitive files are stored securely.
What is the difference between a provision and a reserve?
Why they ask it: To test your clarity on financial terminology.
How to answer: Explain with examples.
Example: A provision is made for a known liability with uncertain value, like a provision for doubtful debts. A reserve is created from profits to meet future needs, like a general reserve.
Which accounting software are you comfortable with?
Why they ask it: To know your technical skills.
How to answer: Mention tools used and your comfort level.
Example: I’ve worked with Tally, SAP, and QuickBooks during my training. I’m comfortable using them and willing to learn any new software as required.
What role can a CA play in business decision-making?
Why they ask it: To assess your strategic mindset.
How to answer: Show value addition.
Example: A CA can analyze costs, assess risks, ensure compliance, and provide insights from financial reports to help business leaders make informed decisions.
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Are you willing to relocate or travel for work?
Why they ask it: To check your flexibility.
How to answer: Be honest and positive.
Example: Yes, I’m open to relocation or travel if it helps my career grow and allows me to learn more.
How do you handle deadlines and pressure?
Why they ask it: To check your work ethic and stress management.
How to answer: Share a real example that shows your time management and calm approach.
Example: During audit season, I had to work on multiple clients with tight deadlines. I created daily plans, prioritized tasks, and stayed focused. This helped me complete the work without compromising quality.
Where do you see yourself in five years?
Why they ask it: To understand your career vision.
How to answer: Be realistic and show ambition aligned with the CA profession.
Example: I see myself in a managerial role, leading a finance or audit team. I want to develop strong leadership skills and contribute to strategic decision-making in an organization.
What are your strengths and weaknesses?
Why they ask it: To assess your self-awareness and honesty.
How to answer: Mention real strengths. Choose a weakness that is minor and show how you’re improving.
Example: My strength is analytical thinking and attention to detail. One weakness was public speaking, but I’ve been working on it by participating in group discussions and presentations.
Why should we hire you?
Why they ask it: To see how well you match the job role and the company’s expectations.
How to answer: Summarize your skills, achievements, and how you can add value.
Example: With my strong academic background, hands-on experience in audits and taxation, and a proactive attitude, I believe I can make a meaningful contribution to your team from day one.
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