LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034 B.Com DEGREE EXAMINATION – CORPORATE & SECRETARYSHIP
FIFTH SEMESTER – NOV 2006
CR 5401 – AUDITING
(Also equivalent to COS 401)
Date & Time : 06-11-2006/9.00-12.00 Dept. No. Max. : 100 Marks
SECTION – A
ANSWER ALL THE QUESTIONS (10×2=20)
- Define “Auditing”
- What is meant by reserve for bad debts?
- In what cases is continuous audit suitable?
- What is meant by internal control?
- List any two precautions to be taken while applying test checks.
- What do the term “goods sold on sale – or – return system” mean?
- Write down the different kinds of vouchers used in a business.
- Distinguish between internal check and internal audit.
- Define the term “verification of assets”
- Explain “errors of principle” with an example.
SECTION – B
ANSWER ANY FIVE QUESTIONS (5×8=40)
- Explain any two types of audit with its advantages.
- What is meant by the term “teeming and lading?” How do you detect it?
- Describe a system of internal check with regard to cash sales.
- How would you verify the following assets: a) Property b) patent rights and trademarks.
- Can a good internal check system reduce the liability of an auditor?
- Distinguish between “sinking fund for the redemption of a liability” and “sinking fund for the redemption of an asset”.
- Write short notes on a) Deferred revenue expenditure b) working papers.
- “Vouching is the essence of auditing” – Discuss.
SECTION – C
ANSWER ANY TWO QUESTIONS (2×20=40)
- What is an Audit programme? Give its advantages and disadvantages.
- Explain the auditor’s duties regarding vouching the items of payment side of cashbook.
- What is secret reserve? How it is created? Explain the duty of an auditor in connection with the secret reserve.