Paper/Subject Code: 85503/Auditing - II
TYBBI SEM-6 :
Auditing-II
(Q.P. November 2024 with Solutions)
Instructions:
(a) All questions are compulsory subject to internal choice.
(b) Figure to the right indicates marks.
Q.1a) Rewrite the sentences by choosing correct option. (Any Eight): 08
i) _________ are not required to furnish LFAR apart from statutory audit report.
(Public sector banks, Private sector banks; Insurance Companies; Foreign Banks)
Ans: Insurance Companies
ii) The portion of profit, which can legally be distributed to the shareholders of the company by way of dividend, is called ________.
(Capital Profit; Revenue Profit, Divisible profit; Regular profit)
Ans: Divisible profit
iii) Bank Loans are to be granted only after verifying _______ of the borrower.
(Credit worthiness; Social Influence, Social Status; Profession)
Ans: Credit worthiness
iv) Surrender value becomes a part of ________ in revenue account.
(Premiums; commissions; Benefits paid; tax paid)
Ans: Benefits paid
v) AS-3 deals with ________
(Revenue Recognition; Inventory Control; Cash Flow Statements; Accounting for Investments)
Ans: Cash Flow Statements
vi) CAAT stands for ________
(Cost Assisted Auditing Techniques; Computer Added Auditing Techniques; Computer Assisted Auditing Techniques, Computer Automatic & Authentic Techniques)
Ans: Computer Assisted Auditing Techniques
vii) White box approach in CIS environment is also known as auditing ________ the computer. (around; without; web based; through)
Ans: through
viii) The auditors should obtain _______ management representations to complement the audit procedures. (oral; written; spoken; verbal)
Ans: written
ix) Books of accounts shall be kept at the _______ of the company. (registered office, auditor's office; government office; overseas office)
Ans: registered office
x) In case of Marine Insurance business, reserve for unexpired risk is _______ % of the net premium. (25%; 50%; 75%; 100%)
Ans: 100%
Q.1 b) State whether the following statements are True or False (Any seven): 07
i. The remuneration of a bank auditor is fixed according to Section 151 of Companies Act, 2013.
Ans: False
ii. Auditor is required to send a copy of his report to each member of the company individually.
Ans: False
iii. A Chartered Accountant can disclose the client's financial information to any person.
Ans: False
iv. Private companies are excluded in calculation of ceiling on number of audits of an auditor.
Ans: True
v. Auditor can give qualified certificate.
Ans: True
vi. In banks, cash should be counted physically at the end of year.
Ans: True
vii. Separate application for registration has to be made for each class of general insurance business.
Ans: True
viii. A Chartered accountant is expected to maintain the dignity and prestige of the profession.
Ans: True
ix. Auditor need to have technical knowledge to perform audit in computerized environment.
Ans: True
x. Provisions of section 44AAB of Companies Act 2013 are applicable to Human Resource audit.
Ans: False
Q.2a) What do you mean by audit report? Explain its types in brief.
Q.2b) What are the rights of company auditor?
OR
Q.2c) Explain the concept of related party disclosures.
Q.2d) Explain conditions and procedure of removal of auditors.
Q.3a) How would the auditor vouch/ verify the following items appearing in the financial Statements of a bank?
i) Non-Performing Assets
ii) Money at call and Money at short notice
Q.3b) How would you evaluate the internal control system of the bank?
OR
Q.3c) How would the auditor vouch/ verify the following items appearing in the financial statements of an insurance company?
1) Claims
Q.3d) Write a note on AS-9
ii) Commission
Q.4b) What are the special aspects of CIS audit environment?
Q.4c) Write a note on Tax Audit.
OR
Q.4d) Explain the internal control system in computerised system.
Q.5a) What do you mean by "professional misconduct"? Enumerate any five instances of Part I of second schedule in Chartered Accountants Act, 1949. 08
Q.5b) Explain the procedure for enquiry into charges of Misconduct of Chartered Accountants. 07
OR
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