M.Com. (Semester II) (CBCS) Examination Oct/Nov-2017
ADVANCED ACCOUNTANCY
(Auditing)
Day Date: Monday, 20-11-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
Audit is an effective tool to see that conditions of a countries
economy remain health.
Tax Management
Environment Cost
The concept of audit is based on the basic economic principle
that the resources should flow into the most remunerative channels.
Balance sheet Efficiency
Financial Management
is the medium through which an auditor expresses his opinion on
the financial statements.
Audit Note Audit Programme
Balance Sheet Audit Report
The first auditor shall be appointed by Directors within month of
the registration of the company.
Nine Twelve
Six One
A report without qualification is known as
Clean report Qualified report
Best report Auditors report
The liability of a company auditor is determined by
Court decisions Company law
Chartered accountant Act All of the above
The cost audit is conducted
Yearly According to the need
Half yearly Quarterly
To measure the efficiency of the management it is necessary to conduct

Cost Audit Social Audit
Management Audit Efficiency Audit
The audit is compulsory under section 44 AB of the company Act is known as

Cost audit Tax audit
Social audit Management audit
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SLR-CJ-19
10) The insurance business is controlled by
Insurance Act, 1938 Insurance Rules, 1939
IRDA Regulations, 2002 All of the above
11) The audit is undertaken when the central government directs to conduct in
certain cases under section 233 A is known as
Social audit Tax audit
Special audit None of these
12) The audit of branch account is compulsory under section
227 228
229 None of these
13) The appointment of an auditor is dealt with section
224 225
227 None of these
14) The first auditor of a company is appointed by
Central government Board of directors
Company registrar Annual General Meeting
Q.2 Write short answer. 14
Auditors certificate
Duties of company Auditor
Q.3 Write short notes. 14
What s management Audit?
What is cost Audit?
Q.4 State the provisions of Indian companies act, 1956 regarding appointment,
remuneration and rights of company auditor.
14
OR
Describe the main features of audit of an Insurance Company.
Q.5 What do you mean by unqualified report and qualified report? Give specimen of
qualified report, giving at least two qualifications.
14
OR
Explain how the audit of bank is conducted.