INTERVIEW QUESTIONS FOR FINANCE AND ACCOUNTSJ

  Basics of EBIT-EPS Approach It is important to understand what EBIT and EPS mean to understand what the analysis is meant to be. EBIT refers to  earnings before interest and tax.  The metric makes interest and taxes irrelevant. Therefore, an investor can understand how the company is performing out of the balance sheet’s composition which essentially makes interest and taxes the focal point of consideration. In terms of EBIT, there is no difference if a company has huge debt or no debt at all. The repercussions will be the same. EPS or  earnings per share  is the metric that shows a company’s earnings including interests and taxes. It is an important metric because it shows the earnings on a per-share basis which helps the investors understand how a company performs on an overall basis. If a company’s overall profit soars high but the payment to investors is low, it is a bad gesture for investors owning a fixed number of shares. EPS shows this dynamic rule sim...

  Q.1 Does an organization articulate its risk appetite and risk tolerances for use in managing the business? Primarily the risk appetite dialogue assists in bringing balance to the conversation around which risks the enterprise should take, types of risks it should avoid and the parameters within which it should operate going forward. The risk appetite statement is decomposed into risk tolerances to address the question. Q.2 State whether the Company’s Risk Reporting offer the management and the board required info required about the top risks and how they are managed? The task of Risk reporting begins with relevant information about the critical enterprise risks and the way those risks are managed. Also it helps to analyse if there are opportunities to enhance the risk reporting process to make it more effective and efficient. Q.3 When are individual performance included in risk management? When managing risk is considered extremely crucial aspect of the organization, then the in...