Auditing Question Papers 2018 (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)
The object of internal check is to
1) Verify
the cash receipts and payments.
2) Facilitate
quick decision by the management.
3) Prevent
errors and frauds.
4) Control
wastage of resources.
b)
Interim audit refers to
1) Examination
of accounts continuously.
2) Examination
of accounts intermittently.
3) Audit
work to find out and check interim profits of a company.
4) Conduct
of audit for bonus purposes at the end of the year.
c)
Which one of the following examples is not
contingent asset?
1) Claim
from the acceptor of bill receivable which has been discounted by the client
from the bank but might be dishonoured.
2) Uncalled
share capital of the company.
3) Income
received in advance.
4) Claim
for refund of sales tax.
d)
The amount of securities premium reserve may be
used only for some specific purposes as per provisions of the Companies Act,
2013 under the
1) Section
50(1)
2) Section
52(2)
3) Section
55(2)
4) Section
56
e)
Auditor under management audit is accountable to
the
1) Shareholders.
2) Annual
General Meeting.
3) Board
of Directors.
4) Board
of Directors and Shareholders.
f)
According to Table F of Schedule I of the
Companies Act, 2013, interest on calls in advance may be paid at a rate not
exceeding.
1) 5%
2) 10%
3) 12%
4) 14%
g)
Profit on redemption of debenture is transferred
to which Account?
1) Capital
Reserve Account.
2) General
Reserve Account.
3) Sinking
Fund Account.
4) Statement
of Profit and Loss.
h)
Loss on issue of debentures is written off.
1) In
the year of issue of debentures.
2) During
the life of debentures.
3) Within
3 years of the issue of debentures.
4) In
the year of redemption of debentures.
2.
(a) Write short notes on any two of the following: 4x2=8
1) Auditing
in depth.
2) Advantages
of cost audit.
3) Necessity
of qualified audit report.
4) Disadvantages
of continuous audit.
(b)
Distinguish between any two of the following: 4x2=8
1) Vouching
and verification.
2) Continuous
Audit and Periodic Audit.
3) Standard
Audit Report and Qualified Audit Report.
3.
(a) What are the advantages of having the accounts audited by an independent
professional auditor? Explain the advantages of audit to the different users. 6+8=14
Also Read: 👉Auditing Solved Paper May' 2018
Or
(b)
Discuss the advantages of conducting audit in accordance with a fixed audit
programme. State the contents recorded in an audit notebook. 7+7=14
4.
(a) (1) Explain the characteristics of sound system of internal check. 6
(2)
Explain the general and specific considerations which the auditor should keep
in mind while vouching cash sales and receipts from debtors. 8
Or
(b)
Discuss the objects of verification and valuation of assets. State the duties
of an auditor regarding verification of stock-in-trade. 8+6=14
5.
(a) Discuss the provisions of the Companies Act, 2013 regarding appointment of
auditors. Point out auditors’ duties in the procedure of issue of shares at a
premium and at a discount. 7+7=14
Or
(b) State how you will examine the following items while
auditing the accounts of a limited company: 4+5+5=14
1) Share
Capital.
2) Dividends.
3) Managerial
Remuneration.
6.
(a) Discuss in brief about different types of audit reports. State the
characteristics of an ideal audit report. What are the differences between
clean and qualified audit reports? 6+4+4=14
Or
(b)
What is management audit? State the objects, advantages and disadvantages of
management audit. 4+10=14
Also Read: Auditing Question Papers Dibrugarh University BCOM 4th SEM
**********************
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
1.
(a) Fill in the blanks: 1x4=4
1)
Auditing starts where _____ ends.
2)
_____ is the backbone of auditing.
3)
Issue of _____ share is a good method of
capitalizing large profits or reserves.
4)
The subscribed capital of a banking company
should not be less than _____ of its authorized capital.
(b)
Write whether the following sentences are True or False: 1x4=4
1)
Internal auditor is under the direct control of
management.
2)
Valuation is a broader term and includes
verification of assets and liabilities.
3)
A debenture is an acknowledgement of ownership.
4)
The true ownership of the company rests in the
shareholders but not in the management.
2.
(a) Define audit. What steps would you take before commencing the actual work
of audit, if you are being appointed as an auditor? 4+7=11
Or
(b) What is internal audit? Distinguish between Continuous
Audit and Internal Audit.
3.
(a) Discuss the duties of an auditor with regard to verification and valuation
of assets. How would you verify the ‘investments’ and ‘contingent liabilities’
appearing in the Balance Sheet of a limited company? 5+7=12
Or
(b) Explain the significance of voucher. Discuss the
factors which affect the reliability of vouchers. What precautions should be
taken by the auditor in this regard? 3+4+5=12
4.
(a) State clearly the rights and duties of an auditor of a company under the
Indian Companies Act. 5+6=11
Or
(b) What are the important points which an auditor must
consider while auditing the following terms? 3+4+4=11
1)
Share Capital.
2)
Dividend.
3)
Managerial Remuneration.
5.
(a) Discuss the characteristics of investigation. Explain the general procedure
followed in an investigation. 5+6=11
Or
(b) Discuss the special points arising in the audit of a
Cooperative Society. 11
6.
(a) Briefly discuss the various types of audit reports. What are the circumstances
under which an auditor considers it necessary to qualify audit report? 6+5=11
Or
(b) Explain the importance of cost audit. Discuss the
differences between Cost Audit and Financial Audit. 5+6=11
7.
Write short notes on: 4x4=16
a)
Detection of errors and fraud.
b)
Scope of internal control.
c)
Utility of audit programme.
d)
Removal of auditor under the Companies Act.
***
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