CU EXAMS 2022

AUDITINGHINAL
SOLUTIONS
SEMESTER-5

WITH DISCUSSION BYGKJ

GOBINd kumar JHA 9874411552

“Ye Wala PDF kar Dala Toh Humlog Ka Life Jingalaa”

B. Com. (Semester – V) Auditing Suggested
Questions for CU Exam, 2022 For both Honours and
General
Group A (5X3=15)
Group B (10X5=50)
Group C (15X1=15)

1. Distinguish between audit & investigation.

2. Distinguish between statutory and non-statutory audit.
3. Write a short note on Standards on Auditing (SA).
4. State the purposes of Standards of Auditing.
5. Discuss the advantages of conducting an audit according to a predetermined audit programme.
6. What do you mean by audit notebook? Discuss the contents of audit notebook.
7. What is Audit Memorandum?
8. What do you mean by audit evidence?
9. Discuss the importance of audit evidence.
10. What are the various procedures of obtaining audit evidence?
11. What do you mean by auditing in depth?
12. What special steps are involved in conducting the audit of an Educational Institution?
13. Prepare an audit programme in respect of a Nursing Home/Hospital.
14. What steps will you take in conducting the audit of a Hospital?
15. Prepare an audit programme in respect of a Hotel.
16. Distinguish between internal control system & internal check system.
17. Distinguish between internal check system and internal audit.
18. Distinguish between internal control and internal audit.
19. Is it compulsory for every company to have an internal audit system?
20. State with references to the relevant SA to what extent should a statutory auditors rely upon internal audit?
21. “In a good system of internal check, the work of one is checked indirectly by the work of another” – Explain
and discuss the statement with examples.
22. How do you vouch the following items:-
a) Vouching of cash sales
b) Interest and Dividend from Investment
c) Vouching of Travelling Expenses
23. How would you verify the following assets & liabilities:-
a) Goodwill
b) Plant and Machinery
c) Investments
d) Inventory
e) Secured Loan
24. State the qualification of a company auditor as per Companies Act, 2013.
25. Discuss the disqualification of a company auditor as per the Companies Act, 2013.
26. State the provisions of the Companies Act, 2013 regarding appointment of a company auditor.
27. State the circumstances when an auditor of a company may be appointed by:- (i) Board of Directors (ii)
Members of the company, and (iii) Central Government.
28. State the provisions of the Companies Act, 2013 regarding removal of a company auditor.
29. Explain the provisions of the Companies Act, 2013 for declaration and payment of dividend.
30. Can dividend be paid out of capital?
31. Can dividend be paid out of capital profit?
32. Can dividend be paid out of current profit without making good past losses?
33. Can dividend be paid out of current profit without writing off fictitious assets?
34. Can dividend be paid out of current revenue profit before writing of depreciation?
35. Distinguish between Auditor’s Report and Auditor's Certificate.
36. What are the different types of audit report?
37. Give a specimen of qualified audit report.
38. Discuss the significance of the term ‘True and Fair View' under the Companies Act, 2013. Discuss how far
auditor's duties have increased as it’s consequences?
39. What is cost audit? Describe the objectives.
40. Write short note on Management Audit.
41. Write a short note on tax audit.
42. Write a short note on Social Audit.
43. Write a short note on Propriety Audit.
44. Write a short note on Performance Audit.
45. Write a short note on Environment audit.

2019 (Honours) Question Paper

Group – A
1. Distinguish between Error and Fraud.
Or, What are the basic principles governing an audit?
2. State the importance of Auditor's independence.
Or, (a) What is balance sheet audit?
(b) How is it conducted?
3. What is analytical procedure in audit?

Group – B
4. (a) What do you mean by audit evidence?
(b) Discuss it’s importance.
(c) What are the various procedures of obtaining audit evidence?
Or, What essential steps are involved in conducting the audit of a hospital?
5. (a) What is internal audit?
(b) Is it compulsory for every company to have an internal audit system?
(c) State with references to the relevant SA to what extent should a statutory auditors rely upon internal audit.
6. As an auditor, how would you verify (any two) :
(a) Secured Loan
(b) Plant and Machinery
(c) Debtors
Or, How will you vouch the following (any two) :
(a) Income from Interest
(b) Cash Sales
(c) Travelling Expenses
7. State the various elements of Audit Report as per SA, 700.
Or, List the matters to be reported under CARO 2016.
8. Write short notes on (any two) :
(a) Social Audit
(b) Cost Audit
 (c) Performance Audit
Group – C
9. (a) State the circumstances when an auditor of a company may be appointed by
(i) Board of Directors
(ii) Members of the company, and (iii) Central Government.
(b) State the qualification of a company auditor.
Or, How will you as a company auditor verify payment of dividend? SND Ltd. credited, the entire profit of ₹ 10
Lacs on the sale of land not require for its use on 31.08.2019. The directors wish to purpose dividend out of
the above profit. – Comment

2019 (General) Question Paper

Group – A
1. What is an Audit? State the objectives of an Audit.
Or, Explain Auditor's duty regarding prevention of errors and frauds.
2. Distinguish between continuous audit and periodical audit.
Or, what is interim audit? State it’s advantages.
3. Define audit working papers. Who is owner of audit working paper?

Group – B
4. Explain audit of an undergraduate college.
Or, what do you mean by audit evidence? What are the sources of audit evidence? How are audit evidence collected?
5. What is internal control system? State it’s advantages and disadvantages.
Or, Define internal audit. Distinguish between internal check system and internal audit.
6. What is vouching? State the essential factors to be considered for vouching. Or, As an auditor, how would you
verify the following? (Any two)
(a) Goodwill
(b) Inventory
(c) Secured Loan
(d) Investment
7. Write short notes on. (Any two)
(a) Tax audit
(b) Social Audit
(d) Environment audit
8. What do you mean by audit report? What are the different types of audit report?

Group – C
9. Discuss the qualification and disqualification of a company auditor as per the Companies Act, 2013. Or,
Explain the provisions of the Companies Act, 2013 for declaration and payment of dividend.

2020 (Honours) Question Paper

Group – A (Any Four)
1. Define auditing. State objectives of independent financial audit.
2. Distinguish between audit and investigation.
3. What is audit programme? Discuss the advantages of conducting an audit according to a predetermined audit
programme.
4. What are audit working paper? What do you mean by ownership of working papers relating to audit? 5. “Vouching
is the essence of auditing” Do you agree with this statement? Justify your view.
6. How will you verify the following (any two) :
(a) Goodwill
(b) Investment
 (c) Trade Payables
7. What special steps are involved in conducting the audit of an Educational Institution?
8. Distinguish between Audit Report and Certificate.

Group – B (Any Two)

9. Write short notes on (any four) :
(a) Social Audit
(b) Environment Audit
(c) Propriety Audit
(d) Tax Audit
(e) Materiality Concept 10. Can dividend be paid:
(a) Out of capital profit?
(b) Out of current profit without making good past losses?
11. Discuss the significance of the term ‘True and Fair view' under the Companies Act, 2013. Discuss how far
auditor's duties have increased as it’s consequences.
12. Define Internal Control. State it’s objectives. Distinguish between Internal Control and Internal Audit.

2020 (General) Question Paper

Group – A (Any Four)
1. (a) What do you mean by Auditor’s independence? (b) State the purposes of standards on auditing.
2. (a) Distinguish between vouching of transactions and verification of assets and liabilities. (b) How would you
vouch Travelling expenses?
3. State the provisions of the Companies Act, 2013 in respect of appointment and removal of an auditor.
4. What are the differences between Audit Report and Certificate?
5. (a) What are the objectives of internal control system?
(b) State to what extent a statutory auditor should rely on internal audit report?
6. What is an audit file? How many types of audit files are there? What are the documents maintained in different
types of audit files?
7. Compare between cost audit and management audit. 8. “An auditor is a watchdog, not a bloodhound” – Discuss.

Group – B (Any Two)

9. (a) State the basic principles governing an audit.
(b) Define an audit programme. State the advantages of a fixed audit programme.
10. State the contents of an Audit Report as per Companies Act, 2013 and the relevant standards on auditing.
11. (a) “Auditing is a dynamic social science “ – Discuss.
(b) Write short note on: (any one)
(i) Social audit
(ii) Tax audit
12. Prepare an audit programme of a hospital.

2021 (Honours) Question Paper

Group – A (Any Four)
1. Discuss the scope of the financial audit as per the relevant standard on auditing. What are the basic principles
governing the financial audit?
2. What are the means of doing fraud? Discuss the Auditor’s responsibility towards detection and prevention of fraud
as per the relevant standards on auditing.
3. What is audit evidence? State the procedure to obtain audit evidence.
4. What do you mean by the analytical procedure in the auditing? Discuss the tools and techniques of this procedure.
5. (a) What are the differences between verification and valuation of assets?
(b) ‘Verification forms an important part of the whole system of audio – Critically examine the statement.
6. How will you vouch the following items: (any two)
(a) Interest and dividend income from investment
(b) Travelling Expenses
(c) Research and Development Expenditure
7. What steps will you take in conducting the audit of a hospital?
8. State the contents of Audit Report as per the relevant Standard on Auditing.

Group – B (Any Two)

9. Write short notes on: (any four)
(a) Cost Audit
(b) Performance Audit
(c) Management Audit
(d) True and fair view
(e) Substantive audit procedure.
10. (a) Can dividend be paid out of current profit without writing off fictitious assets?
(b) What are the provisions of the Companies Act, 2013 regarding depreciation to be provided in the
accounts?
11. State the provisions of the Companies Act, 2013 regarding appointment and removal of a company auditor.
12. (a) What is internal audit? Can a statutory auditor rely on the internal audit report?
(b) What do you mean by audit risk? Discuss the different types of audit risk as per the relevant Standard on
Auditing.

2021 (General) Question Paper

Group – A (Any Four)
1. Define auditing? State the basic principles governing an audit.
2. Distinguish between statutory and non-statutory audit.
3. Discuss the provisions of the Companies Act, 2013 regarding remuneration of Auditor.
4. Distinguish between internal check and internal audit.
5. What is audit note book? State the significance of audit planning.
6. How will you verify the following? (Any two)
(a) Goodwill
(b) Investment
(c) Plant and Machinery
7. (a) What is meant by Audit Report?
(b) Give a specimen of qualified audit report.
8. (a) Write a short note on Standards on Auditing.
(b) Explain the concept ‘True and Fair view'.

Group – B (Any Two)

9. Write short notes on: (any four)
(a) Social audit
(b) Environment audit
(c) Tax audit
(d) Materiality concept
(e) Auditing in depth
10. (a) State the provisions of the Companies Act, 2013 regarding depreciation of the asset.
(b) Discuss the qualification and disqualification of a company auditor.
11. Explain the various steps, which are involved in conducting the audit of a Higher Educational Institution.
12. (a) Distinguish between vouching and routine checking.
(b) What is audit risk? State it’s different types.
(c) State the auditor's duty towards detection and prevention of fraud and error.
 9 8 7 4411 552

GOBIND AR JHA

rajpchouhnst