Thursday, March 30, 2017

Dibrugarh University Question Papers: Auditing (May' 2016)

2016 (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
1. (a) What are the objects of audit? Explain them briefly.                                                            14
Or
(b) What are ways to plan an internal audit? Discuss the advantages and disadvantages of the use of an audit programme.                                 4+5+5=14

2. (a) (i) What is routine checking? Mention the advantages of this checking.                       3+4=7
(ii) “Vouching is the essence of an audit.” Explain this statement.                                              7
Or
(b) How would you verify the following assets?                                 3 ½ x4=14
1.       Patent Right.
2.       Intangible Assets.
3.       Livestock.
4.       Leasehold Property.


3. (a) State clearly the right and duties of an auditor of a company under the Indian Companies Act.                        14
Or
(b) Explain the procedure of issue of shares at premium and at discount under the provisions of the Companies Act. Point out auditor’s duties in this regard.                                                            7+7=14

4. (a) What is statutory report? What are the points to be considered by the auditor before expressing opinion in respect of a statutory report?                                                                          4+10=14
Or
(b) What do you mean by Propriety Audit? What are the instances where an auditor is required to conduct Propriety Audit under the Companies Act?                                          4+10=14

5. Write short notes on (any four):                                                           4x4=16
a)      Contents of audit notebook.
b)      Transfer of shares.
c)       Advantages of Cost Audit.
d)      Audit Programme.
e)      Importance of Audit Report.

6. Choose the correct answer from the alternatives given below:                                              1x8=8
a)      Auditing refers to
                                 i.            Preparation and checking of accounts.
                               ii.            Examination of accounts of business unit.
                              iii.            Examination of accounts by professional auditors.
                             iv.            Checking the voucher.
b)      The Scope of work of internal audit is determined by the
                                 i.            Shareholders.
                               ii.            Management.
                              iii.            Government.
                             iv.            Law.
c)       Errors of omission are
                                 i.            Technical errors.
                               ii.            Errors of principle.
                              iii.            Compensating errors.
                             iv.            None of the above.
d)      Stock should be valued at
                                 i.            Cost.
                               ii.            Market price.
                              iii.            Cost or market prices whichever is lower.
                             iv.            Cost less depreciation.
e)      Government may order for cost audit under
                                 i.            Section 227.
                               ii.            Section 233A.
                              iii.            Section 233B.
                             iv.            Section 224.
f)       Institute of Chartered Accountants of India was established in
                                 i.            April 1, 1956.
                               ii.            April 1, 1949.
                              iii.            July 1, 1956.
                             iv.            July 1, 1949.
g)      Share can be issued at discount under Section
                                 i.            76.
                               ii.            75.
                              iii.            79.
                             iv.            89.
h)      Internal check is a part of
                                 i.            Internal audit.
                               ii.            Internal Accounting.
                              iii.            External Audit.
                             iv.            Internal control.
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
1. (a) Define internal and external evidence. Explain the procedures to obtain audit evidence.                   4+7=11
Or
(b) What is an audit notebook? What purpose does it serve? What are the contents of an audit Notebook? 3+3+5=11

2. (a) What are the objects of verification of assets? State the difference between routine checking and vouching. 4+7=11
Or
(b) What do you mean by verification of assets? How does it differ from valuation? Refer to any one legal decision in respects of verification.                                                                3+5+3=11

3. (a) What do you understand by the term ‘dividend’? Discuss in the light of legal decisions whether profit on revaluation of assets can be distributed as dividend.                                                               4+8=12
Or
(b) What is the procedure of transfer of shares? Point out the auditor’s duties in this connection. Distinguish between transfer and transmission of shares.                                                                       4+4+4=12

4 (a) Discuss the special points arising in the audit of a cooperative society            11
Or
(b) Distinguish between audit and investigation. Explain in detail the procedure for an investigation.       4+7=11

5. Answer [either (a) or (b)] and (c):
(a) What is statutory report? Discuss the auditor’s duty in this connection.                           4+7=11
Or
(b) What do you mean by Management Audit? Discuss briefly the advantages and disadvantages of Management audit.                                                 4+7=11
    (c) Write short notes on:                                          4x4=16
                                 i.            Continuous audit.
                               ii.            Sources of dividend.
                              iii.            Secret reserve.
                             iv.            Disadvantages of financial audit.

6. Choose the correct answer from the alternatives given below:                                              1x8=8
a)      Auditing refers to
                                 i.            Preparation and checking of accounts.
                               ii.            Examination of accounts of business unit.
                              iii.            Examination of accounts by professional auditors.
                             iv.            Checking the voucher.
b)      The Scope of work of internal audit is determined by the
                                 i.            Shareholders.
                               ii.            Management.
                              iii.            Government.
                             iv.            Law.
c)       Errors of omission are
                                 i.            Technical errors.
                               ii.            Errors of principle.
                              iii.            Compensating errors.
                             iv.            None of the above.
d)      Stock should be valued at
                                 i.            Cost.
                               ii.            Market price.
                              iii.            Cost or market prices whichever is lower.
                             iv.            Cost less depreciation.
e)      Government may order for cost audit under
                                 i.            Section 227.
                               ii.            Section 233A.
                              iii.            Section 233B.
                             iv.            Section 224.
f)       Institute of Chartered Accountants of India was established in
                                 i.            April 1, 1956.
                               ii.            April 1, 1949.
                              iii.            July 1, 1956.
                             iv.            July 1, 1949.
g)      Share can be issued at discount under Section
                                 i.            76.
                               ii.            75.
                              iii.            79.
                             iv.            89.
h)      Internal check is a part of
                                 i.            Internal audit.
                               ii.            Internal Accounting.
                              iii.            External Audit.

                             iv.            Internal control.

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