B.Com In Banking & Insurance (BCBI) Sem VI March 2025 March 2025 Auditing II Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 a) Select the most appropriate option to complete the following sentences (Any Eight) 8 marks
   • i. Part of first schedule of Chartered Accountant Act deals with professional misconduct in relation to
   • a) Members inservice members in practice c) members generally d) other misconduct
   • ii. There are schedules in the Chartered Accountant Act about professional misconduct
   • iii. The provision against unexpired risk should of net premium in case of fire insurance
   • iv. Forensic audit is used to investigate
   • v. is a tool to judge organisations performance and effectiveness of Personnel Management
   • vi. LFARis
   • a) A substitute for statutory audit report b) not a part of statutory audit report
   • c) voluntary audit report d) a part of statutory report
   • vii. Auditor of State Bank of India is appointed by
   • a) Comptroller and Auditor General of India _b) Board of directors
   • c) IRDA d) Shareholders
   • viii. | Bank Loans are to be granted only after verifying of the borrower
   • ix. The audit report should be signed by
   • a) Auditor himself b) auditor and audit staff c) management d) shareholders
   • x. Books of accounts should be preserved for at least years
2. Q1 b) State whether the following statements are True or False (Any seven) 7 marks
   • i. Related party disclosures are not compulsory
   • ii. Divisible profits can be computed without providing the depreciation
   • iii. | A chartered accountant cannot share his fees with a non-member
   • iv. of statutory auditor is determined by the previous auditor
   • v. from management can protect the auditor from his liability due to negligence
   • vi. | A company can appoint or reappoint an auditor for one term of five years
   • vii. Statutory auditor can give accounting services to the company
   • viii. In banks, cash should be counted physically at the end of the year
   • ix. Qualified report is alternatively known as clean report
   • x. A person, not holding certificate of practice is allowed to practice on behalf of chartered
3. Q2 a) What are the rights of company auditor? 8 marks
4. Q2 b) Explain the provisions regarding maintenance of books of accounts. 7 marks
5. Q2 c) Explain the liabilities of a Chartered Accountant under Income Tax Act, 1961. 8 marks
6. Q2 d) Discuss the different types of audit reports. 7 marks
7. Q3 a) How would the auditor verify the following items appearing in the financial statements
8. Q3 b) What is LFAR? What are its contents? 7 marks
9. Q3 c) How would the auditor verify the following items appearing in the financial statements of an Insurance Company. 08
   • i) Coinsurance ii) Expenses of management
10. Q3 d) How should be the internal control system in an insurance company? 7 marks
11. Q4 a) Cost Audit in detail. 8 marks
12. Q4 b) Explain Black Box approach and White Box approach in audit under CIS environment. 7 marks
13. Q4 c) What is Internal Control System under CIS Environment? Elaborate internal controls under
14. Q4 d) What is Green Audit? Explain its features and benefits. 7 marks
15. Q5 a) What do you mean by professional misconduct? Discuss any six instances of professional misconduct indicated in Part I of first schedule of Chartered Accountant Act 1949. 08
16. Q5 b) Explain the role of professional accountant in society with reference to the code of ethics. 7 marks
17. Q5 c) Write Short Notes on: (any three) 15 marks
18. Q1 Qualification of company auditor
19. Q2 Operational Audit
20. Q3 AS-17
21. Q4 Joint audit

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