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Monday, February 19, 2018

Dibrugarh University Question Papers: Auditing (May' 2017)

2017 (May)
COMMERCE (General/Speciality)
Course: 403 (Auditing)
Time: 3 hours
The figures in the margin indicate full marks for the questions
Question No. 1 is common for both New and Old Courses
(NEW COURSE)
Full Marks: 80
Pass Marks: 24
1. Choose the correct answer from the alternatives given below:                              1x8=8
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
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
(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. 

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