This Paper has 31 answerable questions with 0 answered.
| I—11(ADT) Revised Syllabus | |
| Time Allowed : 3 Hours | Full Marks : 100 |
| The figures in the margin on the right side indicate full marks |
| Answer Question No. 1 which is compulsory and any five from the rest |
| Marks |
| 1. | (a) | Discuss with reasons, whether the following statements are ‘true’ or ‘false’: (Answer without reasons will not be given any credit) | |||||
| (i) | If the scope of audit work suffers limitations or restrictions, the auditor should give a qualified report. | 1 | (0) | ||||
| (ii) | Splitting of shares will not affect Earnings per share calculation. | 1 | (0) | ||||
| (iii) | Permanent differences under Income-Tax Act may get reflected in the Company’s accounts under deferred Tax assets or deferred Tax liabilities. | 2 | (0) | ||||
| (iv) | Accounting Standard 17 on "Segment Reporting" is manadatory in respect of business enterprises whose turnover for the accounting period exceeds Rs. 50 crores and/or any other condition. | 2 | (0) | ||||
| (v) | Retiring Auditor is always reappointed automatically. | 2 | (0) | ||||
| (vi) | Internal check is part and parcel of Internal control. | 2 | (0) | ||||
| (vii) | Dividends can be declared out of Balances in share premium account. | 1 | (0) | ||||
| (viii) | Contingent Gains are recognised in financial statements. | 1 | (0) | ||||
| (b) | (i) | The auditor of a company required the sales officer, a senior officer, at company’s branch Sales Depot, to furnish certain data essential for completion of statutory audit. Sales Officer, declines on the ground that he was not bound to furnish the same. Is the same correct? | 3 | (0) | |||
| (ii) | The directors of a company object to the critical examination of a particular entry by the auditor, on the ground that the impunged entry is merely a "book entry", not having any bearing on the Company’s results. Is the objection sustainable? | 2 | (0) | ||||
| (iii) | L & Co, is a firm of Chartered Accountants, consisting of five partners, of which one partner decides to discontinue private practice. Can this firm be appointed as statutory auditors of a company? | 3 | (0) | ||||
| 2. | (a) | For what purposes Analytical Procedures are used by the Auditor? | 6 | (0) | |||
| (b) | Enumerate the rights, duties and responsibilities of company’s auditor in relation to the Company’s branch accounts, branch audit and branch auditor. | 10 | (0) | ||||
| 3. | (a) | Briefly discuss about the approaches to computer auditing in achieving Audit objectives. | 8 | (0) | |||
| (b) | Should the Internal Audit Report contain deficiencies and irregularities only, or should cover scope for improvement also? Discuss. | 8 | (0) | ||||
| 4. | How will you vouch/verify the following and what are the important allied aspects to be considered? | 4x4 | |||||
| (a) | Contingent Liabilities; | (0) | |||||
| (b) | Trade Creditors; | (0) | |||||
| (c) | Dishonour of Discounted Bills Receivable; | (0) | |||||
| (d) | Self constructed Asset. | (0) | |||||
| 5. | As an Auditor of a company, state your views on the following: | 4x4 | |||||
| (a) | A Limited Company selling goods mostly on credit wants to maintain its books of account on cash basis. | (0) | |||||
| (b) | A company does not make provision for gratuity payable to its employees, instead, it accounts for gratuity at the time of actual payment. | (0) | |||||
| (c) | Production expenses of the Company under audit included trial production expenses of Rs. 2 lakhs. | (0) | |||||
| (d) | During the year under audit, one of the joint auditors died. The Board of Directors appointed another auditor in his place. | (0) | |||||
| 6. | (a) | "Certain sampling risks are associated with test of control procedures and substantive procedures adopted in carrying out the Audit." — Briefly explain. | 6 | (0) | |||
| (b) | Explain the major aspects of ‘Propriety Audit’ in the Companies (Auditor’s Report) Order, 2003. | 10 | (0) | ||||
| 7. | (a) | What special points should be borne in mind in the Audit of Government Expenditure? | 8 | (0) | |||
| (b) | Is the Statutory Auditor entitled to rely on the Internal Auditor of the Company under his audit? Discuss. | 8 | (0) | ||||
| 8. | Write short notes on: | 4x4 | |||||
| (a) | Inter firm and Intra firm Companies; | (0) | |||||
| (b) | Buy Book of Company’s own shares; | (0) | |||||
| (c) | Secretarial Audit; | (0) | |||||
| (d) | Ratio Analysis. | (0) | |||||
