M.Com. (Semester II) (CBCS) Examination Nov/Dec-2018
ADVANCED ACCOUNTANCY (Paper II)
(Auditing)
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
auditing attempts to measure the consequences of corporate
actions and estimate their costs to society.
Social Efficiency
Cost All the above
To assist the management to achieve the most efficient administration of the
operation is the objective of audit.
Cost Management
Efficiency Social
The concept of audit is based on the basic economic principle
that the resources should flow into the most remunerative channels.
Efficiency Balance Sheet
Financial Management
audit is an effective tool to see that conditions of a countries
economy remain healthy.
Tax Management
Cost Environment
The first auditor shall be appointed by Directors within month of
the registration of the company.
Six One
Nine Twelve
is the medium through which an auditor expresses his opinion on
the financial statements.
Audit Programme Audit Note
Audit Report Balance Sheet
The auditor of a nationalized bank is required to make a report to the Central
Government by addressing it to the of India
Finance Minister Governor
Registrar President
The auditor's report is the end product of every
Financial year Investigation
Audit Examination
The auditor of a company is required not only to verify whether the financial
statements are true and fair, but has also to look into the of system.
Efficiency Correctness
Legalness Standard
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SLR-CS-19
10) The auditor of a company can be prosecuted if he makes a false statement
in any certificate as per section of the Company Act.
428 528
628 None of above
11) Value Added method is applicable for audit.
Efficiency Social
Tax Management
12) The tax auditor shall bear in mind the basic objective of his audit is to assist
the in assessing the correct income to the assesses from the
view point of income tax.
Company employees Tax consultants
Income tax authorities Share holders
13) Cost audit is conducted
Yearly Half Yearly
According to the need Quarterly
14) An audit report without qualification is known as
Qualified report Clean report
Internal auditors report Best report
Q.2 Answer the following in short: 14
What is Cost Audit?
What do you mean by 'Efficiency Audit'?
Q.3 Answer the following (Short Note) 14
Distinguish between Auditor's report and Certificate
Management Audit
Q.4 Answer any one: 14
Describe the main features of audit of an Insurance Company.
State the provisions of Indian Companies Act, regarding appointment,
remuneration and rights of company auditors.
Q.5 Answer any one: 14
What is a qualified audit report? Draft specimen of qualified audit report.
Explain how the audit of bank is conducted.