Auditing Question Papers May' 2019, Dibrugarh Unviersity B.Com 4th Sem/6th Sem B.Com CBCS Pattern

Auditing Question Papers
2019 (May)
COMMERCE (General/Speciality)
Course: 403 (Auditing)
Time: 3 hours
The figures in the margin indicate full marks for the questions
Full Marks: 80
Pass Marks: 24

1. Choose the correct answer from the alternatives given below:      1x8=8
a)         The object of internal audit is
1)         To improve financial control.
2)         To detect errors and frauds.
3)         To prevent errors and frauds.
4)         All of the above.
b)         Not providing adequate depreciation is
1)         Errors of omission.
2)         Errors of commission.
3)         Errors of principles.
4)         Compensating errors.
c)          A continuous audit is specially needed for
1)         Manufacturing concern.
2)         Any trading concern.
3)         Smaller concern.
4)         Banking company.
d)         In case of a company, external auditor is appointed by the
1)         Company Law Board.
2)         Management.
3)         Shareholders.
4)         Shareholders or government.
e)         Any casual vacancy in the office of an auditor of a company shall be filled up as per the provisions under which Section of the Companies Act, 2013?
1)         Section 139.
2)         Section 139(6).
3)         Section 139(8).
4)         Section 140(2).
f)          Which one of the following examples are not contingent liabilities?
1)         Liabilities on bills receivable discounted and not matured.
2)         Liabilities under a guarantee.
3)         Liabilities arising out of litigation in respect of trademark.
4)         Liabilities for outstanding salary.
g)         No dividend shall be declared or paid by a company for any financial year expect out of three specific sources as per provision of the Companies Act, 2013 under
1)         Section 73.
2)         Section 123(1).
3)         Section 123(6).
4)         Section 143(6).
h)         As per Section 139(6) of the Companies Act, the first auditor of a company other than a Government Company shall be appointed by the Board of Directors within how many days from the date of registration?
1)         15 days.
2)         30 days.
3)         45 days.
4)         60 days.
2. (a) Write short notes on any two of the following:                             4x2=8
1)         Importance of Audit Report.
2)         Routine checking.
3)         Managerial Remuneration.
4)         Scope of Internal Control.
(b) Distinguish between any two of the following:                             4x2=8
1)         Internal Audit and External Audit.
2)         Verification and Valuation.
3)         Management Audit and Financial Audit.
4)         Clean Audit Report and Qualified Audit Report.
3. (a) Explain the basic principles governing an audit. Discuss the essential qualities of an auditor.   7+7=14
(b) What is internal control? Explain the elements of a good system of internal control. How far does internal check give security to the auditor?                                                 2+8+4=14
4. (a) What is importance of vouching? Explain the general and specific considerations which the auditor should keep in mind while checking vouchers.          4+10=14
(b) State the importance of verification and valuation of assets from the point of view of an auditor of business concern. What are the duties of an auditor regarding the valuation of investment in the Balance Sheet?                  7+7=14
5. (a) Discuss the provisions of the Companies Act, 2013 regarding qualifications, appointment, rights and duties of an auditor of a limited company.                3+3+4+4=14
(b) Explain the terms ‘divisible profit’ and ‘dividend’. State how you will examine share transfer and dividend while auditing the accounts of a limited company.        3+3+4+4=14
6. (a) Discuss in brief about different types of audit reports. Under what circumstances an auditor considers it necessary to qualify audit report?          8+6=14
(b) Explain the advantages of cost audit. Write about the qualifications of a cost auditor. Discuss about the provisions of cost audit in the Companies Act, 2013.                  5+3+6=14
Full Marks: 80
Pass Marks: 32
1. (a) Fill in the blanks:                 1x4=4
1)         The Constitution of India has envisaged the office of the _______ to be the Supreme Audit Institution of the country.
2)         A continuous audit is specially needed for _______ companies.
3)         An internal auditor is appointed by _______.
4)         A company can issue redeemable preference shares if authorized by the _______.
(b) Write whether the following are True or False:                1x4=4
1)         Auditing is compulsory for all partnership firms.
2)         Interim audit refers to examination of accounts continuously.
3)         Preliminary expenses are of capital nature.
4)         Cost audit has got a wider scope as compared to financial audit.
2. (a) What are the objects of an audit? Explain the advantages of audit to the different users.    4+7=11
(b) What are the advantages of an audit programme? State the contents of an audit notebook.        5+6=11
3. (a) Explain the meaning and objects of vouching. What are the duties of an auditor in connection with vouching of payments (credit) side of the cashbook?                               6+6=12
(b) Discuss the duties of an auditor with regard to verification and valuation of assets. How would you verify the balance at bank?                                 6+6=12
4. (a) Discuss the provisions of the Companies Act regarding appointment, qualification and remuneration of auditor. 4+4+3=11
(b) How will you examine the following items while auditing the accounts of a limited company?   4+4+3=11
1)      Shares issued at a discount.
2)      Shares issued at a premium.
3)      Forfeited shares.
5. (a) Discuss the special points to be considered by the auditor in the audit of a college.              11
(b) Explain the general procedure followed in an investigation. State the differences between an investigation and audit. 5+6=11
6. (a) State the importance of audit report. What are the differences between clean audit report and qualified audit report?                                                 5+6=11
(b) What is cost audit? What are the qualifications of a cost auditor? Distinguish between cost audit and management audit.                                                                 2+5+4=11
7. Write short notes on the following:                                                                    4x4=16
a)         Continuous Audit.
b)         Routine Checking.
c)          Frauds and Errors.
d)         Sources of Dividend.

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