This Paper has 25 answerable questions with 0 answered.
| Roll No………… | |
| Time allowed : 3 hours | Maximum marks : 100 |
| Total number of questions : 7 | Total number of printed pages : 3 |
| PART—A |
| (Answer ANY TWO questions from this part.) |
| Marks |
| 1. | (a) | Comment on the following: | | |
| | | (i) | Under the Company Secretaries Act, 1980, ‘the Council of the Institute of Company Secretaries of India (ICSI) has ultimate and absolute authority with regard to misconduct’. | 4 | (0) |
| | | (ii) | Bhushan was adjudged as an insolvent, but was subsequently discharged of the insolvency. He has applied for membership of the ICSI. Bhushan is otherwise qualified and eligible for membership. | 2 | (0) |
| | (b) | The Company Secretary in Practice should have the attributes of an entrepreneur. | 6 | (0) |
| | (c) | (i) | Offer prices of shares issued on preferential basis are left to the discretion of the Board of directors of a listed company. | 3each | (0) |
| | | (ii) | The Board of directors of a listed company has proposed a bonus issue in the following prevalent conditions: | — | the company defaulted in the payment of principal amount and interest to the holders of fixed deposits; and | | — | consequent to the bonus issue the subscribed and paid–up capital will exceed the authorised capital. |
| | (0) |
| | | (iii) | The Lead Merchant Banker has accepted to act as a Registrar to an issue and to handle the post–issue responsibilities. | 2 | (0) |
| 2. | (a) | A public limited company has assigned you, as the Company Secretary in Practice, the work of pre–certification of documents. The following events have taken place. Draft check–lists for the purpose: | (i) | A special resolution has been passed at an annual general meeting for amendment in the articles of association. |
| (ii) | Certain properties of the company are mortgaged to secure a series of debentures. |
| 6 each | (0) |
| | (b) | A Company Secretary in Practice has been appointed as an authority to investigate into the compliance of the SEBI (Prohibition of Insider Trading) Regulations, 1992. Discuss the audit procedure and the audit points to be scrutinised by the Company Secretary in Practice. | 8 | (0) |
| 3. | (a) | In what way can the secretarial audit be used as a tool for good governance of companies? | 8 | (0) |
| | (b) | Explain briefly the salient points to be checked for certification of securities transfers in compliance with the directives of the stock exchanges in respect of the following: — Clause 3C; and — Clause 16 of the listing agreement. | 6 | (0) |
| | (c) | Prepare a check–list of audit points during the course of internal audit of depository participants’ records in regard to rematerialisation of securities. | 6 | (0) |
| PART—B |
| (Answer Question No.7 which is compulsory and any two of the rest from this part.) |
| 4. | (a) | "Management audit is a vague concept and serves no material purpose and a review of past managerial actions and decisions would stifle the initiative– and dynamism of managers." Discuss with reference to the nature, scope and coverage of management audit. | 10 | (0) |
| | (b) | Suggest the remedial measures to be taken in respect of the following deficiencies: | 5each | |
| | | (i) | Strategies for the department are vague if not non–existent and there is no systematic planning in regard to purchase and materials management. | | (0) |
| | | (ii) | Reliable and timely data is not made available to the management and adequate reports, returns are not generated and made available regarding capacity utilisation, lead times in production, quality control, scrap, wastage, salvage, etc. | | (0) |
| 5. | (a) | What observations the auditors are required to make under the Companies (Auditor’s Report) Order, 2003, as amended, in respect of ‘related party transactions’? | 5each | (0) |
| | (b) | What are the objectives of cost audit when it is being taken up on behalf of the management? | | (0) |
| | (c) | "Excess inventories are termed as graveyards of business." Is it correct? Support your answer with necessary justifications. | | (0) |
| | (d) | Differentiate between ’cost audit’ and ’management audit’. | | (0) |
| 6. | (a) | "The management’s task of developing an effective workforce is dependent upon good personnel administration." Explain the important points to be kept in mind for review of personnel policies of a company. | 10each | (0) |
| | (b) | State the meaning of ’efficiency audit’ and elaborate as to how it is useful in preventing sickness in an industry. | | (0) |
| 7. | (a) | "Information systems audit is an evaluation of adequacy of control in computerised environment." Comment. | 8 | (0) |
| | (b) | Write notes on any three of the following: | 4each | |
| | | (i) | Effect of computerised accounting on auditing. | | (0) |
| | | (ii) | Changes to evidence evaluation due to computerisation. | | (0) |
| | | (iii) | Asset safeguarding objectives. | | (0) |
| | | (iv) | System efficiency objectives. | | (0) |
