B.Com. (Financial Management) SEM VI 2018 2019 May 2019 AUDITING II Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A) Multiple Choice Questions. (any 08) 1A is a document that indicates a request for goods by a customer 8 marks
   • 2. The following points should be checked by the auditor while vouching: (checking the voucher/ checking supporting documents/ checking the entry in the books all of
   • 3. Which of the following is most reliable for verifying the correct balance of creditors? (supplier’s invoices/ supplier’s statements/ confirmations/ bills of lading)
   • 4. New bank loans will be taken under the authority of (board of directors/ purchasing department/ accounting department/ accounts payable
   • 5. Fraudulent financial reporting may be accomplished through manipulation of (assets/ revenues/ liabilities/ all of the above)
   • 6. is responsible for preparation of financial statements
   • 7. If it is probable that the judgement of a reasonable person will be changed or influenced by the omission or misstatement of information, then that information is
   • 8. The company auditor may (issue written communications to branch auditor/ advise the branch auditor of significant matters/ require the branch auditor to answer a questionnaire/ any or all of the above)
   • 9. The first auditor shall hold office till the conclusion of the annual general meeting
   • 10. The auditor of shall have a right of access to (financial books/ statutory books/ stock books/ all of the above)
2. Q1 B) State whether the following statements are True or False. (any 07) 7 marks
   • 1) — An auditor must retire once he attains the age of 60 The auditor of Government Company is appointed by shareholders
   • 3), . Every company auditor is a chartered accountant but every chartered accountant cannot be an auditor of a company Audited accounts are free from errors and frauds
   • 5) The requirements of each SA are contained in a separate section and expressed using the
   • 6) are never shown in the balance sheet at realisable value
   • 8) If is in the possession of a company, it is compulsorily owned by the company
   • 9) should verify whether the payee has signed on a revenue stamp, if the sum
   • 10) of the voucher is checked to see that the transaction pertains to current year
3. Q2 As an Auditor, how will you vouch the following: 15 marks
   • a) Interest Income
   • b) Insurance Premium
4. Q2 As an Auditor, how will you vouch the following: 15 marks
   • p) Purchases
   • q) Rent Received
5. Q3 As an Auditor, how will you verify the following: 15 marks
   • a) Investments
   • b) Public Deposits
6. Q3 As an Auditor, how will you verify the following: 15 marks
   • p) Furniture & Fixtures
   • q) Outstanding Expenses
   • a) Explain SA 230. 8
   • b) Explain in detail, the provisions of Companies Act, 2013 regarding “Disqualification of Auditors.’ 7
7. Q4 p) Write a note on SA 240. 8 marks
   • q) Explain the duties of company auditors. 7
8. Q5 a) Explain SA 300. 8 marks
   • b) Explain the provisions of appointment of first and subsequent auditors of 7
9. Q5 Short Notes. (Any three) 15 marks
   • p) Vouching of commission received
   • q) Procedure for issue of Auditing Standards in India
   • r) Importance of Vouching Objectives of verification
   • t) Any 5 rights of company auditors

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