B.Com 3rd Year Question Papers (Distance): Auditing' 2016

2016 (August)
Course: 302
Full Marks: 90

Time: 3 hours

The figures in the margin indicate full marks for the questions

1. (a) What is Continuous Audit? What are its advantages? State the differences between Continuous Audit and Periodical Audit. 2+4+8=14
(b) What are the objects of Auditing? What are the essential qualities required of an auditor apart from the statutory qualifications? Discuss the advantages of the use of an audit programme. 4+6+4=14
2. (a) Explain the importance of Vouching. What are the distinctions between Vouching and Verification?6+8=14

(b) Discuss the auditor’s duties in proper valuation and verification of liabilities. How would you verify the following specific liabilities? 8+3+3=14
  1. Sundry Creditors for goods supplied.
  2. Bills Payable.

3. (a) State clearly the rights and duties of an auditor of a company under the Indian Companies Act.       7+7=14
(b) What are Divisible Profits? As an auditor, state the legal provisions relating to the payment of final dividend. 4+10=14
4. (a) What are the privileges of Registered Co-operative Societies? Explain the duties of an auditor of a registered Co-operative society. 6+8=14
(b) What special points should be borne in mind by you in carrying out an investigation on behalf of a person who wants to purchase business of a going concern? 14
5. (a) What is qualified report? Under what circumstances as an auditor of a public limited company would you qualify your report? Draft a qualified report giving at least four reasons. 2+4+8=14
(b) Distinguish between Management Audit and Cost audit. State the advantages and disadvantages of Management Audit. 6+8=14
6. Write short notes on: (any four) 4x4=16
  1. Propriety Audit.
  2. Internal Check.
  3. Contents of audit notebook.
  4. Secret Reserve.
  5. Reliability of Audit Report.
7. Fill in the blanks with suitable words: 1x4=4
  1. Audit cannot show result unless there are well supported system of ____ and ____. (Control/Accounting/Arrangement/Auditing)
  2. Audit Note-book serves as a reliable ____ in the court of law. (document/evidence/witness)
  3. A good audit programme should be ____. (fixed/detailed/flexible)
  4. A/An ____ dividend is declared before the declaration of final dividend. (Proposed/Interim/Cash)