LOYOLA COLLEGE (AUTONOMOUS), CHENNAI –600 034

B.Com, DEGREE EXAMINATION – COMMERCE

SIXTH SEMESTER – APRIL 2004

CO 6607/COM 607 – AUDITING

14.04.2004                                                                                                           Max:100 marks

1.00 – 4.00

SECTION – A

 

Answer ALL questions                                                                                (10 ´ 2 = 20 marks)

 

1. What is internal check?
2. Name any two Administrative control system of a manufacturing concern.
3. Define Auditing.
4. Define Vouching.
5. Distinguish between verification and valuation.
6. What is contingent liability.
7. What is Test checking?
8. State the disqualification of an Auditor.
9. What is Auditor’s opinion of disclaimer?
10. Rectify the following errors.
11. Anand proprietor bought a two wheeler valued Rs.30,000 for his personal use has been debited to general Expenses.
12. Goods purchased from Mr. Lal Jain Rs.6,000 has been passed through Sales Returns book with Rs.600. But Mr. L. Jain’s A/c has been credited correctly.

 

SECTION – B

 

Answer any FIVE questions                                                                        (5 ´ 8 = 40 marks)

 

11. “It is nothing to the auditor whether the business is run prudently or imprudently, profitable or unprofitably” Do you agree? Give reasons for your answer.
12. What is Audit note book?  of what purpose does it serve?  What are the contents of audit note book.
13. “Teeming and Lading” – A challenge to vouching. What are the duties of an auditor in this respect?
14. What are the points to which you would direct your attention, while accepting an appointment as an auditor of a company? State under what circumstances, an appointed auditor can be removed from his office?
15. How would you as an auditor verify and what are the points to which you would pay attention while verifying the creditors balance and investments Accounts?
16. What is Audit programme? Describe the advantages of audit programme by giving a specimen of an Audit programme.
17. Under what circumstances an auditor can be appointed by the
18. a) Board of Directors b) Central Government.
19. Describe the Statutory contents of Auditor’s Report in accordance with the provisions of the companies Act 1956.

 

SECTION – A

 

Answer any TWO questions                                                                        (2 ´ 20 = 40 marks)

 

19. How would you as an auditor Examine the following
20. a) Credit Sales b) Wages paid c) cash purchases         d) Preliminary Expenses         e) Deferred Revenue Expenditure.

 

20. Explain the Rights and Duties of a company auditor as per the provisions of the companies Act.

 

21. Explain is detail, the various objectives of Auditing is the light of legal pronouncements like “An Auditor is a watchdog and not a blood hound” -Lord Justice Lopes

and “He is not an insurer.  He does not guarantee that the books do show the true

position of the company affairs” – Lord Justice Lindsey.

 

 

 

 

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