B.Com In Banking & Insurance (BCBI) Sem VI September 2024 September 2024 Auditing II Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 a) Rewrite the sentences by choosing correct option. (Any Eight) 8 marks
   • i) are not required to furnish LFAR apart from statutory audit report
   • ii) The portion of profit, which can legally be distributed to the shareholders of the company by way of dividend, is called ili) Bank Loans are to be granted only after verifying of the borrower
   • iv) Surrender value becomes a part of in revenue account
   • v) AS — 3 deals with (Revenue Recognition; Inventory Control; Cash Flow Statements; Accounting for Investments)
   • vi) CAAT stands for ;
   • vii) White box approach in CIS environment is also known as auditing the computer
   • viii) The auditors should obtain management representations to complement the
   • ix) Books of accounts shall be kept at the of the company
   • x) In case of Marine Insurance business, reserve for unexpired risk is % of the net premium
2. Q1 b) State whether the following statements are True or False (Any seven) 7 marks
3. Q1 The remuneration of a bank auditor is fixed according to Section 151 of Companies Act, 2013 li. Auditor is required to send a copy of his report to each member of the company individually
   • iii. | A Chartered Accountant can disclose the client’s financial information to any person
   • iv. Private companies are excluded in calculation of ceiling on number of audits of an auditor
   • v. Auditor can give qualified certificate
   • vi. banks, cash should be counted physically at the end of year
   • vii. Separate application for registration has to be made for each class of general insurance business A Chartered accountant is expected to maintain the dignity and prestige of the profession ix, Auditor need to have technical knowledge to perform audit in computerized environment
   • x. Provisions of section 44AAB of Companies Act 2013 are applicable to Human Resource audit
4. Q2 a) What do you mean by audit report? Explain its types in brief. -08
5. Q2 b) What are the rights of company auditor? 7 marks
6. Q2 c) Explain the concept of related party disclosures. 8 marks
7. Q2 d) Explain conditions and procedure of removal of auditors. 7 marks
8. Q3 a) How would the auditor vouch/ verify the following items appearing in the financial Statements of a bank? 08
   • i) Non-Performing Assets ii) Money at call and Money at short notice
9. Q3 b) How would you evaluate the internal control system of the bank? 7 marks
10. Q3 c) How would the auditor vouch/ verify the following items appearing in the financial statements of an insurance company? 08 Write on AS — 9. 07
11. Q4 a) What do by mean by Cost Audit? Explain in detail. 8 marks
12. Q4 b) What are the special aspects of CIS audit environment? 7 marks
13. Q4 c) note on Tax Audit. 8 marks
14. Q4 d) Explain the internal control system in computerised system. 7 marks
15. Q5 a) What do you mean by “professional Enumerate any five instances of Part I of second schedule in Chartered Accountants Act, 1949. 08
16. Q5 b) Explain the procedure for enquiry into charges of Misconduct of Chartered Accountants. 7 marks
17. Q5 c) Write short notes on: (any three) 15 marks
    • (i). Divisible profits
    • (ii) Remuneration of auditor of banks
    • (v) Elements of audit report

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