Bachelor of Commerce (B.Com.) SY BCom Sem 4 BCom Sem 4 (2018 2019) April 2019 FINANCIAL ACCOUNTING AND AUDITING Question Paper - Mumbai University | munotes

Questions asked in this paper

• (2) Figures to the right indicate full marks

1. Q1 (A) State whether the following statements are True or False (Any Ten) 10 marks
   • i. The statutory auditor is responsible for taking and compiling the inventory
   • ii. An auditor should act like a bloodhound and not a watchdog
   • iii. An auditor cannot take the help of experts
   • iv. Routine Checking is normally done by the senior audit staff
   • v. The audit technique of confirmation is a formal inquiry only from insiders
   • vi. Internal Control System is the responsibility of the management
   • vii. An Audit Program will serve its purpose only if it is in writing Audit sampling does not reduce the responsibility of the auditor for his opinion
   • ix. An auditor has no right of lien on the books of accounts of the company
   • x. Continuous Audit is an audit conducted during the year with regular or irregular intervals
   • xi. Sample size depends also upon the auditor’s assessment of degree of reliance to be placed on the internal controls
   • xii. An auditor should also verify contingent liabilities
   • (B) Match the Columns (Any Ten) e Method of selecting sample e Wrong Casting by mistake e Helps in deciding Sample Size and Lading e Examination of documentary evidence e Audit History e A type of error e Random Selection e A type of fraud e Internal Auditor e Users of financial information e Statutory Auditor e No Prescribed Qualification e Bankers e Part of Internal Controls e Balance Sheet Audit e Property of Auditor e Fraud by Management e In-depth Audit of Items in Balance Paper Subject Code: 77706 Financial Accounting and Auditing -Auditing 10
2. Q2 A) Explain the concept “True and Fair View’ in auditing. 8 marks
   • B) What are the primary objectives of Auditing? 7
   • C) Explain the term ‘Errors’. What are the different types of Errors? 8
   • D) What is meant by ‘Annual Audit’? What are its advantages? 7
3. Q3 A) What is an ‘Audit Note Book’? What are its contents? 8 marks
   • B) What is an ‘Audit Program’? What are its disadvantages? 7
   • C) What is a Permanent Audit File? What are the contents of a Permanent Audit File? 8
   • D) Explain the importance of the Audit Working papers. 7
4. Q4 A) Enumerate the factors influencing the sample size. 8 marks
   • B) What is Test Checking? Explain in brief the drawbacks of Test Checking. 7
   • C) What are Internal Checks? What are the objectives of Internal Checks? 8
   • D) Explain the Internal Controls for Debtors. 7
5. Q5 A) How would you verify Plant and Machinery? 8 marks
   • B) How would you vouch Cash Sales? 7
   • C) How would you verify Furniture and Fixtures? 8
   • D) How would you vouch Consignment Sales? 7
6. Q6 A) What is Auditing? What are the inherent limitations of Auditing? 10 marks
   • B) Explain the concepts of Verification and Valuation. 6.C) Write Short Notes (Any Four) (20) 10
   • a) Principles of Auditing
   • b) Secret Reserve
   • c) Audit Planning
   • d) Sampling Risk
   • e) Internal Audit
   • f) _Vouching Paper Subject Code: 77706 Financial Accounting and Auditing -Auditing
7. Q2 WOT
8. Q3 Wet
   • x. far Paper Subject Code: 77706 Financial Accounting and Auditing -Auditing
9. Q3 3) ale He?
10. Q3 Aged ANT
11. Q3 ANT
    • H) HA

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