Auditing (Accounts Elective Paper III)

1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – MARCH / APRIL 2013

B.COM / BBM- VI SEMESTER

AUDITING (ACCOUNTS ELECTIVE-PAPER III)

TIME: 3 HOURS                                                                                   MAX. MARKS: 100

SECTION – A

1. Answer ALL the following questions.                               (10×2=20)

 

1. Give the definition of Auditing?
2. What does CARO stand for and how many clauses are there in CARO?
3. Bring out the two differences between Routine Checking and Vouching?
4. What is Teeming and Lading?
5. Explain the term “Professional Ethics” in Auditing?
6. Bring out the relationship between Auditing and Accounting?
7. Mention the two types of Audit Tests used for Audit Evidence?
8. What is Audit Memorandum?
9. Explain the term Auditing Through Computer?
10. What is Auditing in EDP Environment?

 

SECTION – B

1. Answer ANY FOUR of the following questions.        (4×5=20)

 

11. Explain briefly the procedure for enquiry relating to the Professional Misconduct of Chartered Accountants?
12. “Development in the last two decades has extended the scope of Auditing” — In this context bring out the factors responsible for the growth of Audit.
13. Briefly state some of the Mandatory Accounting Standards issued by ICAI?
14. “On the face, the entries appear to be innocent. So in order to find out the truth the auditor goes behind the books of account to trace the source of entries”— In regard to this statement, bring out the importance of Vouching.
15. Imagine yourself as an Auditor and draft a specimen of a Clean Audit Report.
16. Explain how the Vouching would be done for proceeds from sale of Investments and Building?

 

SECTION- C

• Answer ANY THREE from the following questions.           (3×15=45)

17. “Under the Constitution of India the position of the Comptroller & Auditor General of India is similar to that of the judge of the Supreme Court of India. He enjoys an independent status under the Companies Act, 1956”.— With reference to this bring out the various provisions with regard to:
18. Appointment & Removal
19. Remuneration
20. Duties
21. Powers
22. Audit Report of the C & AG.
23. Explain in detail the procedure followed in the course of Audit?
24. “In conducting vouching appropriately and efficiently, the auditor should follow certain principles”. — Write down the general principles of vouching with regard to this statement.
25. “Audit Reporting is the communication of audit conclusions after having carried out the audit process in accordance with audit plan”—In this context, explain briefly the basic elements of an Audit Report Layout in detail.
26. “In computerized audit all types of statements and reports can be prepared easily and quickly. However, auditing in EDP environment is subject to a number of problems or constraints”. — Bring out the main problems or constraints that an auditor would face while auditing under EDP environment with suitable examples.

 

SECTION – D

1. Case Study – Compulsory question                                  (1X15=15)
2. Auditing as a discipline involves review of various assertions both with regard to financial as well as non-financial terms. It is quite logical and natural that the function of audit can be performed if and only the person possesses a good knowledge about the fields in respect of which he is conducting such a review”—–

In the context to the above case study explain in detail the Relationship of Auditing with various other disciplines giving suitable examples.