Auditing Question Papers 2017 (May)
COMMERCE (General/Speciality)Course: 403 (Auditing)
Time: 3 hours
The figures in the margin indicate full marks for the questions
(NEW COURSE)
Full Marks: 80
Pass Marks: 24
a) Detection of errors and fraud in audit is
a) Primary
object
b) Secondary
object
c) Specific
object
d) None of
the above
b) Management Auditor can be removed by
a) Annual
General Meeting.
b) Board of
Directors
c) Shareholders
d) Board of
Directors and Shareholders
c) A person qualified for appointment as a Company Auditor is
a) a graduate
b) a body
corporate
c) officer or
employee of company
d) None of
them
d) Contingent liability is
a) Trade
liability
b) Possible
liability
c) Outstanding
liability
d) None of
the above
e) Undervaluation of stock is
a) Technical
error
b) Compensatory
error
c) Error of
principles
d) None of
the above
f) Huge Investment in advertisement shown in financial statements
as
a) Revenue
expenses
b) Capital
expenses
c) Deferred
revenue expenses
d) None of
the above
g) Provisions regarding redemption of preference shares are in
Companies Act, 2013 under
a) Section
180
b) Section 56
c) Section 55
d) None of
the above
h) Government may order for cost audit under
a) Section
227
b) Section
233A
c) Section
233B
d) Section
224
2. (a) Distinguish between any two of the following: 4x2=8
1) Accountants
and Auditors.
2) Test
checking and Routine checking.
3) Verification
and Valuation.
(b) Write short notes on any two of the following:
a) Utility of
audit programme.
b) Internal
control.
c) Audit
evidences.
d) Removal of
auditor under Companies Act.
3. (a) What is vouching? Explain the general and specific
considerations which the auditor should keep in mind while checking vouchers of
credit sales. 4+10=14
Also Read: 👉Auditing Solved Paper May' 2017
Or
(b) What are the duties of an auditor with regard to valuation of
assets? Discuss the audit procedure for verification of contingent liabilities. 7+7=14
4. (a) What are the special considerations involved in the audit
of a company? Discuss the duties of an auditor as regards audit of the share
capital of a company. 7+7=14
Or
(b) How will you examine the following items while auditing the
accounts of a limited company? 4+5+5=14
a) Preliminary
expenses
b) Forfeited
shares
c) Shares
issued at a discount
5. (a) Explain in brief various types of Audit Report. What are
the circumstances under which an auditor considers it necessary to qualify
Audit Report? 8+6=14
Or
(b) What is cost audit? What are the justifications of a cost
audit? Discuss the cost audit procedure of a manufacturing unit. 2+5+7=14
6. (a) What steps would you taken before commencing the actual
work of audit, if you are being appointed as an auditor? Explain the auditor’s
duties in relation to the detection and prevention of errors and fraud. 6+8=14
Or
(b) Explain the advantages of continuous audit. How would you
compare continuous audit and internal audit? 6+8=14
Also Read: Auditing Question Papers Dibrugarh University BCOM 4th SEM
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
1. Answer Question No. 1 of New
Course. 1x8=8
1. Choose the correct answer from the alternatives given below: 1x8=8
a) Detection of errors and fraud in audit is
e) Primary
object
f) Secondary
object
g) Specific
object
h) None of
the above
b) Management Auditor can be removed by
e) Annual
General Meeting.
f) Board of
Directors
g) Shareholders
h) Board of
Directors and Shareholders
c) A person qualified for appointment as a Company Auditor is
e) a graduate
f) a body
corporate
g) officer or
employee of company
h) None of
them
d) Contingent liability is
e) Trade
liability
f) Possible
liability
g) Outstanding
liability
h) None of
the above
e) Undervaluation of stock is
e) Technical
error
f) Compensatory
error
g) Error of
principles
h) None of
the above
f) Huge Investment in advertisement shown in financial statements
as
e) Revenue
expenses
f) Capital
expenses
g) Deferred
revenue expenses
h) None of
the above
g) Provisions regarding redemption of preference shares are in
Companies Act, 2013 under
e) Section
180
f) Section 56
g) Section 55
h) None of
the above
h) Government may order for cost audit under
e) Section
227
f) Section
233A
g) Section
233B
h) Section
224
2. (a) What is an audit programme? Discuss the advantages of
conducting audit in accordance with a fixed audit programme. 4+7=11
Or
(b) What is internal check? Explain the inter-relationship of
internal control, internal check and internal audit. 2+9=11
3. (a) What are the main objects of vouching? Discuss the process
of vouching of cash receipts of a business concern. 4+7=11
Or
(b) State the differences among vouching, verification and
valuation. Discuss the duties of an auditor regarding verification of assets
and liabilities. 6+5=11
4. (a) Describe the provisions of the Companies Act with regards
to qualification of the auditor. Can a properly appointed auditor be removed
before the expiry of his term? If so, explain in brief, the procedure of
removal. 4+2+6=12
Or
(b) Explain the procedure under the provisions of Companies Act
for the issue of shares at a premium and at a discount. Point out the duties of
an auditor in this connection. 7+5=12
5. (a) What are the characteristics of investigation? Explain the
duties of an investigator. 6+5=11
Or
(b) Discuss the special points arising in the audit of an
educational institution like a school or a college. 11
6. (a) What are the contents of an Auditor’s Report? Distinguish
between a clean audit report and a qualified audit report. 5+6=11
Or
(b) What is cost audit? Discuss the advantages and disadvantages
of cost audit. 3+8=11
7. Write short notes on: 4x4=16
a) Routine
checking.
b) Propriety
audit.
c) Procedure
of transfer of shares.
d) Sources of
dividend.