C.U.SHAH UNIVERSITY Summer Examination-2016 Subject Name : Principles of Auditing - II Subject Code : 4CO06PAU1
Branch: B.Com (English)
Semester : 6
Time : 02:30 To 05:30
Date : 11/05/2016
Marks : 70
Instructions: (1) Use of Programmable calculator & any other electronic instrument is prohibited. (2) Instructions written on main answer book are strictly to be obeyed. (3) Draw neat diagrams and figures (if necessary) at right places. (4) Assume suitable data if needed. Q-1
Attempt the following questions: a)
b)
c)
d)
e)
f)
The dividend declared in between two general meetings is called ….. (a) Interim dividend (b) Final dividend (c) Divisible profit (d) None of the Above How many specimen of clean reports of auditors are given? (a) 1 (b) 2 (c) 3 (d) 4 Who appoints the auditor within one month after incorporation of the company that remains till the completion of first Annual General Meeting? (a) Secretary (b) Board of Directors (c) Treasurer (d) Central Government …… is Auditor’s comment about the results of examination of accounts. (a) Audit Certificate (b) Annual Statements (c) Court Rewards (d) Audit Report …… generation of computers were also called the Super-computers. (a) Third (b) Fourth (c) Fifth (d) Sixth To whom the company auditor is expected to address his report? (a) Share-holders of the company Page 1 || 3
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(b) Central Government (c) Board of Directors (d) Company Secretary g) Assets which are fluctuating and whose forms frequently changes are called …… (a) Fixed Assets (b) Floating Assets (c) Tangible Assets (d) Fictitious Assets h) After declaration of dividend by company in Annual General Meeting within how many days the share-holders should be paid the dividend? (a) 7 days (b) 14 days (c) 21 days (d) 30 days i) Who becomes liable for negligence in the verification of the price of assets? (a) Director (b) Auditor (c) Treasurer (d) Secretary j) …… is used in the auditing of accounting records/ (a) Checking through computers (b) Audit Trial (c) Computer Audit Programme (d) None of the above k) Which one of the following is not correct in regard to the “Right of an Auditor”? (a) Right to receive remuneration (b) Right to be indemnified (c) Right to get expert advice (d) Right to attend the Board of Directors meeting l) …… is the first step in auditing. (a) Verification (b) Vouching (c) Valuation (d) None of the above m) Into how many types does Tangible Assets is divided? (a) 1 (b) 2 (c) 3 (d) 4 n) Which type of liability gets created on the auditors for negligence or misfeasance when they do not work as per his duties. (a) Civil liability (b) Criminal liability (c) Third party liability (d) None of the above Page 2 || 3
Attempt any four questions from Q-2 to Q-8 Q-2
Attempt all questions State and explain the auditor’s duties as per Indian Companies Act.
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Q-3
Attempt all questions Discuss the following auditors liabilities under the Companies Act. (a) Civil liabilities of auditor (b) Criminal liabilities of auditor
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Q-4
Attempt all questions Write a note on: (a) Concept of “True and Fair” (b) Contents of Audit Report
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Q-5
Attempt all questions What is Divisible Profit? Discuss the factors to be considered while distributing the dividend. Differentiate between Profit and Divisible Profit
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Q-6
Attempt all questions What do you mean by Computerized Accounting System? Explain its merits and demerits
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Q-7
Attempt all questions Explain the following (1) Importance of computerized accounting methods. (2) Audit Certificate
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Q-8
Attempt all questions Define Verification. Explain the objectives and duties of auditors regarding verification
b) How many specimen of clean reports of auditors are given? (a) 1. (b) 2. (c) 3. (d) 4. c) Who appoints the auditor within one month after incorporation of the ...
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