Wednesday, April 01, 2015

Dibrugarh University Question Papers - Auditing (May' 2014)

2014 (May)
COMMERCE
( General )
Course : 403
( Auditing)
Full Marks : 80
Pass marks : 32
Time : 3 hours

1. (a) choose the correct answer from alternative the given below:  5
(i) Main objective of auditing is
(1) detection of error
(2) to find out whether profit and loss account and balance sheet  show true and fair state of affairs.
(3) detection of fraud
(4) detection and prevention of fraud and errors


(ii) A continuous audit is needed for
(1) Any trading concern
(2) Smaller concern
(3) Banking companies
(4) Any manufacturing concern

(iii) Internal auditor is appointed by
(1) Management
(2) Shareholders
(3) Government
(4) None of above

(iv) The objective of internal audit is
(1) To prevent error and fraud
(2) To detect error and fraud
(3) To improve financial control
(4) All of the above

(v) stock should be valued at
(1) cost
(2) Market price
(3) Cost or market price whichever is lower
(4) Cost less depreciation

(b) fill in the blanks:     1*3
(i) The company can buyback its shares only if it is authorized by its____.
(ii) Section______ of Companies Act,1956 has laid down reporting requirement for the auditor.
(iii) The Constitution of India has envisaged the office of the______to be the Supreme Audit Institution in the country.

2. Write short notes on the following(any four)    4*4=16
(a) Fraud and error
(b) Tax audit
(c) Continuous audit
(d) Routine checking
(e) Audit programme
(f) Source of dividend

3.(a) Examining critically the role of auditing in the efficient and economical conduct of a business concern. Explain the advantages of audit to different user group.                                       5+6
Or
(b) state the purpose and characteristics of sound system of internal check differ from internal control audit?                    6+5

4.(a) what is verification of assets and liabilities? State the duties of an auditor regarding valuation and verification of stock in trade.                                                                               4+7
OR
(b) explain the significance of vouchers. Discuss the factors which affect the reliability of vouchers and explain what precautions should be taken by the auditor in this regard.                                            3+4+4
5.Discuss the provision of companies Act, 1956 regarding appointment and remuneration of the auditors.            8+4
OR
(b) How will you examine the following items while auditing the accounts of a limited company?                               6+6
(i) Redemption of preference shares
(ii) Forfeiture of shares

6.(a) Discuss the special point to be considered by the auditor in the audit of an educational institution.                                 11
OR
(b) what is investigation? Discuss the characteristics of investigation.                                                  4+7

7. (a) what is a cost audit? Discuss the distinction between cost audit and financial audit.                               4+7
Or
(b) What do you mean by statutory report? Draw up a qualified audit report  as per companies order,2003.     4+7