sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Students »
 Announcement for the Certificate Course on Cooperatives at Gwalior from 26th May 2018
 Roll No. data - PQC Exam in INTT-AT, May, 2018.
 President's Message - February 2018
  Examination Timings - CA May - 2018 Examinations
 ICAI wants CA course to be accorded PG status
 Announcement - Reservations in CA course
 Refresher Course on GST and Ind AS organized for CA Students and gain knowledge on GST and Ind AS
 Discontinuation of Students Learning Management System (LMS)
 Observations of the candidates on the question papers of CA examinations November, 2017
 Mock test paper for the students of CPT for December’17 Examination
 Join the Refresher Course on GST and Ind AS organized for CA Students and gain knowledge on GST and Ind AS

A model paper in auditing
April, 06th 2010

State whether the following statements are true or false, giving reasons (10 x 2 = 20 marks):

i) The risk of fraud remaining undetected is called audit risk.

ii) An auditor is not responsible for frauds remaining undetected after the audit is completed.

iii) Tolerable error is the difference in the total of balance-sheet which the auditor is willing to accept.

iv) Management of an entity has more knowledge of the business than the auditor.

v) The service provider is under no obligation to provide information to the auditor.

vi) Test check is an accepted audit practice.

vii) The auditor should not rely on internal evidence.

viii) Amounts payable on credit cards is an unsecured loan.

ix) Depreciation is not charged on the assets destroyed.

x) Borrowing costs are to be suspended during monsoon when the site of construction is waterlogged.

2) Give your views on the following: a) A company held an old car standing in its books at Rs 35,000 (before depreciation). Before March 31, 2009, the company advertises in newspapers to sell the car and the best offer was for Rs 30,000.

During April, the company finds a buyer and sells the car for Rs 40,000. The company charges depreciation on its vehicles at 15 per cent per annum as a policy. What is the value to be considered for the purposes of financial statements as on March 31, 2009? (8 marks)

b) Continuing the above situation, the company utilises the profit on sale of the car for proposing dividends to its shareholders. Do you agree? (6 marks)

c) Mr Smart is appointed as the auditor of a company at its annual general meeting (AGM) held in August 2008 to hold office till completion of the next AGM. He completes the audit for the year ended March 31, 2009, and releases his audit report during June 2009.

The managing director proposes him to join the board of directors and offers to induct him in to the board at the ensuing AGM. The auditor accepts the proposal. What is the procedure to be adopted? (6 marks)

3) In an audit, some of the respondents send in confirmations and some do not. How do you deal in both the situations? (10 marks)

4(a) What special points are to be considered in the course of the audit of a leasing company? (5 marks)

b) How does a local authority generate funds? How do you audit them? (5 marks)

5) How do you vouch/verify any two of the following: a) intangible assets; b) income tax; and c) deferred tax liability. (5x2 = 10 marks)

6(a) What are the different ways in which an auditor can be appointed by a company? ( 5 marks)

b) What are the rights of the auditor of a company? (5 marks)

7(a) What points are to be considered by the CAG while carrying out audit of expenditure? (5 marks)

b) Vouching of expenditure is more difficult than vouching of income. Comment. (5 marks)

8) Write short notes on any two of the following: a) walk through procedures; b) retail method; and c) CARO. (5x2 = 10 marks)

(The author is a Hyderabad-based chartered accountant.)

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Customer relationship management software CRM software Operational CRM Collaborative CRM

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions