M.Com. (Semester III) (CBCS) Examination Nov/Dec-2018
ADVANCED ACCOUNTANCY III
Time: 2½ Hours Max. Marks: 70
Instructions: All Questions are Compulsory.
Figures to the right indicate full marks.
Q.1 Choose the correct alternative given in the bracket. 14
The main object of an audit is
Expression of opinion
Detection and Prevention of fraud and error
Both a and b
Depends on the type of audit
The title of AAS2 issued by Council of ICAI is
Objective and Scope of the Financial Statements
Objective and Scope of the Audit of Financial Statements
Objective and Scope of Business of an Entity
Objective and Scope of Financial Statements Audit
Concurrent audit is a part of
Internal check system Continuous audit
Internal audit system None
Balance sheet audit includes verification of
Assets
Liabilities
Income and expense accounts where appropriate
All of the above
Which of the following statements is not true about continuous audit?
It is conducted at regular interval
It may be carried out on daily basis
It is needed when the organization has a good internal control system
It is expensive
Audit programme is prepared by
The auditor
The client
The audit assistants
The auditor and his audit assistants
The working papers which auditors prepares for financial statements audit
are
Evidence for audit conclusions
Owned by the client
Owned by the auditor
Retained in auditor's office until a change in auditors
Who is responsible for the appointment of statutory auditor of a limited
company?
Directors of the company Members of the company
The central Government All of the above
Page 2 of 2
SLR-CZ-12
Which of the following sections deal with qualifications of the auditor?
Section 226 and section 226
Section 224 and section 224
Section 226 and section 226
Section 224 and section 224
10) The board of directors shall appoint first auditor of a company
Within one month of completion of capital subscription state of the
company
Within one month of the promotion of the company
Within one month of the commencement of the business of the
company
Within one month of incorporation of the company
11) The section which contains provisions regarding remuneration of the
auditor is
Section 224(9) Section 224(7)
Section 224(8) Section 224(6)
12) Which of the following documents is not relevant for vouching cash
sales?
Daily cash sales summary
Salesman's summary
Monthly statements sent to customers
Bank statement
13) Which of the following is not an inherent limitation of internal control
system?
Management override Collusion among employees
Inefficiency of internal auditor Abuse of authority
14) is a systematic examination of financial statement.
Accounting Auditing
Both None
Q.2 Write a short answers on following: 14
Management Audit
Techniques of internal control
Q.3 Write a short note on following: 14
Continuous Audit
What do you mean by unqualified audit report? Explain its features
Q.4 Write answer: (Any one) 14
What are the Duties responsibilities of an auditor? Explain in Detail.
What are the provisions regarding appointment of company auditor under
company act? Explain in brief.
Q.5 Write answer: (Any one) 14
What are the different types of audit? Explain in Details.
Define Auditing and explain its objectives in details.