This Paper has 28 answerable questions with 0 answered.
| Roll No…………………… | |
| Total No. of Questions— 8] | [Total No. of Printed Pages—3 |
| Time Allowed : 3 Hours | Maximum Marks : 100 |
Answers to questions are to be given only in English except in the cases of candidates who have opted for Hindi medium.
If a candidate who has not opted for Hindi medium, answers in Hindi, his answers in Hindi will not be valued. |
| Answer Questions 1 and 2 and any four from the rest. |
| Marks |
| 1. | As an auditor comment on the following situations/statements: | | |
| | (a) | The first auditors of Health and Wealth Ltd., a Government company, was appointed by the Board of Directors. | 3 | (0) |
| | (b) | In case the existing auditors reappointed at the Annual General Meeting refused to accept the appointment, whether the Board of Directors could fill up the vacancy? | 3 | (0) |
| | (c) | The auditor of Trilok Ltd. did not report on the matters specified in sub–section(1A) of Section 227 of the Companies Act, 1956, as he was satisfied that no comment is required. | 3 | (0) |
| | (d) | At the AGM of a company, in which a Nationalized Bank held 25% of the subscribed capital, Krishna & Co., Chartered Accountants, were appointed as auditor by passing an ordinary resolution. | 3 | (0) |
| | (e) | The members of C. Ltd. preferred a complaint against the auditor stating that he has failed to send the auditors report to them. | 3 | (0) |
| | (f) | One of the directors of Hitech Ltd. is attracted by the disqualification under Section 274(1)(g). | 3 | (0) |
| 2. | Comment on the following: | | |
| | (a) | ABC Ltd. has not deposited provident fund contributions of Rs. 20 lakhs to the authorities, but accounted in the books. | 3 | (0) |
| | (b) | Asian Overseas Oil Ltd.'s oil wells were damageed in Iraqi war in November, 2002. Claim preferred with the Insurance Companies for total loss. Pending he settlement by the Insurance Companies neither any provision nor any disclosure has been made on 2002–03 accounts. | 3 | (0) |
| | (c) | Sundry debtors of a company as on 31-3-03 include Rs. 10 lakhs from M/s Unreliable Traders, who have been declared as insolvent on 4-4-2003. | 3 | (0) |
| | (d) | Directors of Speedway Ltd. declared a final dividend of 30% for 2002-03 in their meeting held on 11-8-2003. | 3 | (0) |
| | (e) | During the year under audit, A Ltd. credited to the Profit & Loss Account, the entire profit of Rs. 5 lakhs on the sale of land not required for its use. You are informed that the directors would like to propose dividend out of the above profit. | 3 | (0) |
| | (f) | Inspite of the internal control weakness commented upon by the audit manager, no further tests need to be carried out, as the purchase and sales figure as a percentage of gross profit was same as in the previous year. The audit manager's comments were in regard to control over purchases and sales. | 3 | (0) |
| 3. | (a) | Can the Statutory Auditor rely upon the work of an internal Auditor? | 8 | (0) |
| | (b) | What do you understand by Audit through the Computer? | 8 | (0) |
| 4. | How will you vouch/verify the following | | |
| | (a) | Remuneration to directors. | 4 | (0) |
| | (b) | Consignment sales. | 4 | (0) |
| | (c) | Patent rights. | 4 | (0) |
| | (d) | Royalties received. | 4 | (0) |
|
| 5. | (a) | What are the aims of internal control so far as Financial and Accounting aspects are concerned? | 12 | (0) |
| | (b) | What is the meaning of "options on unissued share capital" of a company? | 4 | (0) |
| 6. | (a) | What are the Basic Principles governing an Audit as laid down in SAP–1? | 10 | (0) |
| | (b) | What are Audit working papers and why should they be carefully preserved by the Auditor? | 6 | (0) |
| 7. | (a) | What is the ideal approach while carrying out audit of Incomplete Records? | 8 | (0) |
| | (b) | An audit of expenditure is one of the major components of Government Audit. In the context of
"Government Expenditure Audit" write in brief, what do you understand by: | (i) | Audit against Rules and Orders | | (ii) | Audit of Sanctions | | (iii) | Audit against Provision of Funds | | (iv) | Propriety Audit | | (v) | Performance Audit |
| 8 | (0) |
| 8. | Write short notes on the following: | | |
| | (a) | Outstanding Assets | 4 | (0) |
| | (b) | Fundamental Accounting Assumptions | 4 | (0) |
| | (c) | Extent of Reliance on Analytical procedures. | 4 | (0) |
| | (d) | Purpose of providing depreciation | 4 | (0) |
