This Paper has 52 answerable questions with 5 answered.
I—P6(CIA)
Syllabus 2008 |
| Time Allowed : 3 Hours | Full Marks : 100 |
| The figures in the margin on the right side indicate full marks. |
Answer Question No. 1 and Question No. 5 which is compulsory and attempt any two
from the rest in Section I and any two from rest in Section II. |
SECTION I (Marks 50)
(Commercial & Industrial Laws) |
| Marks |
| 1. | Comment on the following statements based on legal provisions: | 2x7 | |
| | (a) | An agreement with insufficiency of consideration is void abinitio; | | (2) |
| | (b) | Every employee in an establishment is entitled to bonus under the Payment of Bonus Act. | | (1) |
| | (c) | Mr. X offers to sell his Maruti car to Mr. Y for and intended sum of Rs. 90,000/- but by mistake he makes an offer in writing for Rs. 70,000/- instead of Rs. 90,000. Mr. X can plead mistake as defense . | | (0) |
| | (d) | Mr. X delivered 1000mt. steel pipes to Mr. Y. 100 mt. were not as per specification, hence Mr. Y refused to accept and informed Mr. X to take back at his cost and risk. Mr. X rejected Mr. Y’s request and demanded to return to Mr. X freight paid. State the correct position. | | (1) |
| | (e) | Consumer under Consumer Protection Act, 1986 means persons who obtain goods for resale or for any commercial purpose. | | (1) |
| | (f) | Public Information Officer shall as expeditiously as possible and in any case within 30 days of receipt of request provide the required information. | | (0) |
| | (g) | Workmen working a public utility services have right to go on strike even without giving notice. | | (0) |
| 2. | (a) | Mr. Ramesh promised to pay Rs. 10,000/– on 30.10.08 jointly to Mr. Bhabesh and Mr. Naresh for some consideration. Mr. Bhabesh died on 1.9.08. On 30.10.08 Mr. Naresh demanded payment of whole amount of Rs. 10,000/–. Whether Mr. Naresh is justified? | 2 | (0) |
| | (b) | BEE owes Rs. 10,000/– to CEE. Amount was guaranted by GEE. Said debt becomes payable on 25.10.07. CEE does not sue BEE. Hence due to delay GEE is automaticall discharged from his surityship—Comment. | 2 | (0) |
| | (c) | In case of personal injury, the employer is liable to pay compensation within 3 months from the date when it fall due. State legal provisions. | 2 | (0) |
| | (d) | Personnel Manager told to Director that at least one canteen shall be provided in every factory. Do you agree? | 2 | (0) |
| | (e) | An agent retained all the stock and other papers of a principal until his pending dues are cleared by the principal State legal position. | 2 | (0) |
| | (f) | Calculate the amount of gratuity of Mr. X who joined the company on 1.5.78 and retired on 30.11.08 when his salary was Rs. 26,000/– per month. During November, 2008 he received overtime and incentive Rs. 5,000/–. | | (0) |
| | (g) | Mr. Ramesh direct his agent to sell his Maruti car. Agent buys the car for himself but in the name of his friend at Rs. 50,000/– against market price of Rs. 70,000/– without the consent of Mr. Ramesh. What action Mr. Ramesh can take? | 2 | (0) |
| | (h) | When and under what circumstances a person can receive pension under Employees Provident Fund Scheme? | 2 | (0) |
| | (i) | Dr. B has been dismissed by the Manager of an Industrial Establishment. Workmen demanded his reinstatement Comment legal position. | 2 | (0) |
| 3. | (a) | What will be the consequences when goods are sold by person not the Owner and without Owner’s consent. | 4 | (0) |
| | (b) | Market of a cheque is not liable under N.I. Act for dishonour of cheque under certain conditions. State such conditions. | 3 | (0) |
| | (c) | One mistake was detected after passing of orders by the Commission under Competition Act, 2002. Whether such mistake can be rectified? If so, by whom and how? | 3 | (0) |
| | (d) | An employer is liable to pay compensation to his workmen even when the workmen is away from premises at the time of accident. State legal position. | 4 | (0) |
| | (e) | Who can file complaints under Consumer Protection Act, 1986? State the period of limitation if any for filing of complaints. | 4 | (0) |
| 4. | (a) | Write explanatory notes on any four: | 4x4 | |
| | | (i) | Time is the essence of contract; | | (0) |
| | | (ii) | Permissible deduction under Payment of Wage Act; | | (0) |
| | | (iii) | Rights of the unpaid seller; | | (0) |
| | | (iv) | Misrepresentation; | | (0) |
| | | (v) | Sale and agreement to sell. | | (0) |
| | (b) | A dismissed employee is not entitled to bonus under Bonus Act — Comment, based on legal provision. | 2 | (0) |
SECTION II (Marks 50)
(Auditing) |
| 5. | Comment on the following statements based on legal provision: | 2x7 | |
| | (a) | US–GAAP is not different that of India. | | (1) |
| | (b) | Reserve not appearing on the balance sheet is a Secret Reserve and an Auditor is not supposed to very it. | | (0) |
| | (c) | Auditor can avoid checking of records where good internal check system exist. | | (0) |
| | (d) | When Information System Audit is an Information Technology Audit, the Auditor is required to have detailed knowledge of Auditing rather than information system. | | (0) |
| | (e) | To comply with the CARO in respect of LOAN the Auditor is to comments on certain points. | | (0) |
| | (f) | Management Audit is conducted by Statutory Auditor of the Company. | | (0) |
| | (g) | ABC Ltd. in its meeting held on 30.09.08 appointed Mr. X as Auditor of the company. Mr. X is holding Securities Valuing Rs. 500/– in that company from 01.01.07. Can he accept the appointment? | | (0) |
| 6. | (a) | What are the contents of good Audit Report? | 4 | (0) |
| | (b) | As an Auditor, mention the points and books to be checked in connection with issue of Corporate Governance Report. | 4 | (0) |
| | (c) | Explain how the following are dealt with under the CARO: | (ii) | Deposit of Statutory Dues. |
| 2+2 | (0) |
| | (d) | State the particulars which are to be included in the balance sheet of holding company of its subsidiary. | 4 | (0) |
| | (e) | Risk occurring due to insufficient or incompetent evidence collected by the auditors to express his opinion on the financial statement is called an Audit Risk. Is the statement correct? | 2 | (0) |
| 7. | (a) | How as an Auditor you will verify the "contingent liability"? | 4 | (0) |
| | (b) | What is Computer Assisted Audit Technique? | 4 | (0) |
| | (c) | How as an Auditor you will treat the amount received after 2 years? This was written off as Bad Debt. | 2 | (0) |
| | (d) | Statutory Auditor can be appointed as Internal Auditor of the same company for the same period. —Do you agree? | 2 | (0) |
| | (e) | What are the objectives of Operational Audit? | 4 | (0) |
| | (f) | Auditor in his Report is to comment whether the company has Internal Audit System commensurate with size and nature of its business. Whether this is applicable for all companies? | 2 | (0) |
| 8. | (a) | In connection with Audit Risk information system Auditor is concerned with certain objectives. What are those? | 2 | (0) |
| | (b) | Auditor should test check controls established to reduce the risk associated with e–commerce transactions. State the position. | 2 | (0) |
| | (c) | State the need for Management Audit. | 4 | (0) |
| | (d) | Auditors are not required to get Inventory Valuation Certificate by the Company’s Management as he himself is qualified to ascertain the value. State the position. | 2 | (0) |
| | (e) | Auditor while undertaking Audit of environment of personal computer should know that inadequate control measures may creat serious problems. What are those? | 2 | (0) |
| | (f) | Audit Committee is only luxury to the company. Do you agree | 2 | (0) |
| | (g) | As an Auditor how you will verify the "investment"? | 4 | (0) |
