This Paper has 24 answerable questions with 0 answered.
| Roll No…………………… | |
| Total No. of Questions— 8] | [Total No. of Printed Pages—2 |
| Time Allowed : 3 Hours | Maximum Marks : 100 |
Answers to questions are to be given only in English except in the cases of candidates who have opted for Hindi medium.
If a candidate who has not opted for Hindi medium, answers in Hindi, his answers in Hindi will not be valued. |
| Answer Questions Nos. 1 and 2 and four from the rest. |
| Marks |
| 1. | As an auditor, comment on the following situations/statements: | | |
| | (a) | Travelling expenses of Rs. 2.25 lakhs shown in Profit and Loss Account of X Ltd., including a sum of Rs. 1.10 lakhs spent by Director on his foreign travel for Company's business accompanied by his mother for her medical treatment. | 5 | (0) |
| | (b) | X Ltd., to whom Companies (Auditor's Report) Order, 2003 is applicable, has issued 9% Debenture of Rs. 5 crores, redeemable after 5 years and used the proceeds of issue for payment of Sundry Creditors and other Current Liabilities of Rs. 2.80 crores. | 5 | (0) |
| | (c) | The surplus arising from sale of investment was set–off against a non–recurring loss and was not disclosed separately. | 5 | (0) |
| | (d) | The register of members of AP Ltd. has not been written up–to–date and as a result, the balances in the register do not agree with the amount of issued Share Capital. | 5 | (0) |
| 2. | Give your comments on the following: | | |
| | (a) | Mr. X, a Director of M/s KP Private Ltd., is also a Director of another company viz–M/s GP Private Ltd., which has not filed the Annual accounts and Annual return for last three years 2002–03 to 2004–05. Mr. X is of the opinion that he is not disqualified u/s 274(1)(g) of the Companies Act, 1956, and auditor should not mention disqualification remark in his Audit report. | 5 | (0) |
| | (b) | Mr. Aditya, a practising Chartered Accountant is appointed as a "Tax Consultant" of ABC Ltd. in which his father Mr. Singhvi is the Managing Director. | 4 | (0) |
| | (c) | You have been appointed the Sole auditor of a Company where you were one of the joint auditors for the immediately preceding year and the said joint auditors is not re–appointed. | 4 | (0) |
| | (d) | No Annual General Meeting (AGM) was held for the year ended 31st March, 2005, in XYZ Ltd., Ninu is the auditor for the previous year, whether she is continuing to hold office for current year or not. | 3 | (0) |
| 3. | (a) | Why are Computer Aided Audit Techniques (CAAT) required in EDP audit? What are the advantages of CAATs? | 10 | (0) |
| | (b) | State the different types of Analytical Review carried out in verification of inventories. | 6 | (0) |
| 4. | How will you vouch/verify the following ? | 4x4 | |
| | (a) | Purchase of quoted investment. | | (0) |
| | (b) | Discounted bill receivable dishonoured. | | (0) |
| | (c) | Amount due to subsidiary companies. | | (0) |
| | (d) | Purchase return. | | (0) |
|
| 5. | (a) | What are the special considerations in an audit of a Limited Company? | 8 | (0) |
| | (b) | Explain propriety audit in the context of Government Audit. | 8 | (0) |
| 6. | (a) | What are the special steps involved in framing a system of Internal check? | 8 | (0) |
| | (b) | How the audit is advantageous to Sole Trader? | 8 | (0) |
| 7. | (a) | What are the meaning and purposes of Sampling? Explain in the light of AAS – 15, Audit Sampling. | 8 | (0) |
| | (b) | State briefly Audit Procedures and Audit Techniques. | 8 | (0) |
| 8. | Write short notes on the following : | 4x4 | |
| | (a) | Statutory Report of a Public Company under section 165(4) | | (0) |
| | (b) | Scrutiny of General Ledger. | | (0) |
| | (c) | Initial Engagements. | | (0) |
| | (d) | General principles of Verification of Assets. | | (0) |
