B.Com. III (Semester (New CBCS) Examination, 2018
Advanced Accountancy (Paper II)
Auditing
Day and Date Saturday, 8-12-2018 Max. Marks 70
Time 10.30 a.m. to 1.00 p.m.
N.B. All questions are compulsory.
Figures to the right indicate full marks.
1. Choose correct alternative 14
Balance sheet audit is different from audit.
Continuous Interim
Final All of above
The error which is counter balanced by the other error is called as
Compensating error Errors of commission
Errors of duplication Misappropriation of goods
Under section of Companies Act, auditor has right to
visit the branches of the company.
U/S 221 U/S 226
U/S 228 U/S 231
"An auditor is a watch dog and not a blood hound" such a remark was
passed by the learned judge in case.
The Blue Band Navigation Co.
Hindusthan Rings Co.
Kingston Cotton Mills Co. Ltd.
B.P.L. Ltd.
A is one where the auditors staff is engaged
continuously on the accounts the whole year round or where the auditors
attends at intervals fixed or other wise during the financial year.
Continuous Interim
Partial Special
Cash received from a certain debtor is neither recorded in the cash book
nor to that debtors account but it is misappropriated by the cashier is
known as
Errors of omission Errors of commission
Compensating errors Teaming and lading
means systematic recording of day to day business
transactions in the books of account.
Book-keeping Accountancy
Auditing Vouching
The main object of auditing is detection and prevention of
in earlier days.
Vouching Recording
Errors and frauds None of above
The of assets implies enquiry of the value, ownership and
title existence and possession, the presence of any charge on the assets.
Valuation Verification
Vouching All of above
10) Voucher is evidence by which the entries in the books
of accounts may be proved.
Registered
Without documentary
Documentary
None of above
11) In of labour principle is applied.
Internal audit Interim audit
Continuous audit None of above
12) audit report should be presented in Form No. 3CA.
Tax
Cost
Management
None of above
13) To develop of management skills and evaluation, every business
organisation can do audit.
Cost audit Social audit
Management audit Balance-sheet audit
14) To test whether all the purchases have been recorded, the auditor should
draw a sample from a file of
Purchase bills file Sales bill file
Bank statement and both
2. Write short note (any two) 14
Advantages of auditing
Difference between internal audit and interim audit
Cost-audit.
3. Write short notes (any two) 14
Difference between vouching and verification.
Removal of auditor and remuneration of auditor.
Audit of educational charitable institutions.
4. Answer any one 14
Explain the provisions for tax audit.
OR
ii) As per Banking Regulation Act, 1949 which restrictions are imposed for
transparent banking business.
5. Answer any one 14
Define internal check system. Explain its characteristics and explain
requirements of a good internal check system.
OR
ii) How would you vouch the following items
Sale of investments
Bad-debts recovered
Payment to creditors
Income tax and sales tax.