| 3. |
(a) |
Managing director of Xavier Ltd. is of the opinion that the relevant forms in respect of charges should be filed with the Registrar of Companies within the stipulated time. Clarify the position to the managing director of Xavier Ltd. regarding the relevant time limits for filing prescribed forms and the consequences in case of default. |
|
(b) |
Securities audit acts as a powerful mechanism to prevent fraudulent and unfair trade practices. Elucidate. |
|
(c) |
Under the Employees Stock Option Scheme, on 1st April, 2005 a company issues 1,000 shares of nominal value of Rs.10 per share at Rs.40 per share when the market value of the shares is Rs.160 per share. As a consequence of this, the equity share capital will go up by Rs.40,000 and Rs.1,20,000 is treated as discount on shares and share premium account will also go up by an equal amount. Examine the statement and state whether it is true or false giving reasons in support of your answer. |
|
(d) |
What are the important points that are to be examined by a Company Secretary in practice while conducting internal audit of depository participants in respect of ‘account opening’ ? |
| (5 marks each) |
| PART—B |
| (Answer Question No.7 which is compulsory and any two of the rest from this part.) |
| 4. |
Critically examine any four of the following :
| (i) | Management audit is a comprehensive critical review of all aspects on processes of management. |
| (ii) | Management audit begins when a statutory financial audit ends. |
| (iii) | Operational audit is a scientific tool and technique adopted by the auditor in a progressive business concern. |
| (iv) | An operational auditor has to review and analyse the control measures in operations in an organisation. |
| (v) | Efficiency audit is to ensure that every rupee invested in capital or other field gives the optimum return. |
|
| (5 marks each) |
| 5. |
(a) |
The chief of an internal audit department has been asked by the managing director of the company to ensure that no qualifications are made by the statutory auditor in his report under the Companies (Auditor’s Report) Order, 2003. What are the points that need to be examined and reported to the managing director by the chief of internal audit in respect of the following items :
| (i) | fixed assets; |
| (ii) | inventory; and |
| (iii) | loans granted or taken ? |
|
| (4 marks each) |
|
(b) |
Discuss the advantages and limitations of inter-firm comparison. |
| (8 marks) |
