Audit Question Bank – TYBBI SEM 5, 2013

Audit Question Bank – TYBBI SEM 5, 2013

  1. What is statutory audit?

  2. Write difference between Internal and External Audit (statutory audit).

  3. What is environment audit? What are its objectives?

  4. Explain Cost Auditand its ojectives.

  5. What do you mean by “Due Diligence Audit” explain its need.

  6. Short notes:

  1. Proprietary Audit.

  2. Auditing in Computerised Environment.

  3. Generally accepted auditing practices.

  1. XYZ Ltd. was registered with the Registrar of Companies on 1st April, 2007. The Board of Directors appointed Mr. Prakash as the first auditor on 11th May, 2007. A new Board of Directors who assumed charge on 30th May, 2007, removed him and appointed Mr. Banerjee as the auditor of the company.

  2. How would you vouch the following receipts of a company?

  1. Rent

  2. Dividend

  3. Interest

  4. Commission

  5. Insurance claim

  1. Write in brief what are KYC norms with importance of these and as an Auditor what one should verify.

  2. As an auditor of the banking company, the major thrust is put on matter of the correct NPA classification and right provision thereof.

  3. Prepare an audit checklist for verification of the follwing area of Banking Company

  1. Bills for collection

  2. Bills Purchased.

  1. Write the Audit procedure for the verification of the following relating to bank audit:

  1. Loan against term deposits

  2. Loan against LIC Policy and government securities.

  1. Enumerate procedure of vouching in respect to the following

  1. Professional fees paid.

  2. Preliminary expenses paid.

  3. Dividend received/Receivable on share.

  4. Carriage Inward.

  1. Draft a detailed Audit plan for Verification of the advances portfolio in banks.

  2. Write a note in long form audit report.

  3. Discuss the procedure for verification of fixed assets in case of a company.

  4. Write short Notes on:

  1. Removal of a company auditor

  2. Long form audit report

  3. “Surprise Check”

  4. Environmental Audit.

  1. State the procedure for verification of agent’s balance in the course of audit of general insurance company.

  2. State the special points that will receive the attention of auditor in verification of loan against life insurance policies.

  3. Write a short note on procedures to e adopted by auditor for verification of premium in General Insurnce Company.

  4. Explain the term Co-Insurance and write short note in Incoming and Outgoing Co-insurance.

  5. A major part of the benefits paid by the insurer is the claims as far as Life Insurance companies are concern, in context to the same write the noes on the audit procedure relating to the verification of the same and what are the records one has to check for the audit verification.

  6. State the procedure for verification of Investment in the Audit of an Insurance Company.

  7. Write the audit procedure to be followed for the verification of claims paid and received by the Insurance Company.

  8. Explain the audit procedures for verification of claims paid and payable by an Insurance Company.

  9. What is audit sampling? What factors auditor should consider for designing a sample?

  10. What are the basic principles governing an audit (SAP – 1)?

  11. Discuss, ‘relying on the work of the internal auditor’.

  12. Briefly Highlight the importance of ‘AAS-2’.

  13. Short Notes

  1. Generally accepted Auditing Practices.

  2. AAS-3 “Documentation”.

  1. Explain the elements of audit report as specified in AAS 28.

  2. Under what circumstances does an auditor issue a disclaimer of opinion?

  3. Write the circumstances under which the Auditor of the company finds it necessary to qualify his report to the members of a company.

  4. Explain the nature of verification the auditor should conduct before issuing report or certificate on financial information in offer documents.

  5. Distinguish between ‘Clear Report’ and ‘Qualified report’.

  6. When does an auditor  gives Disclaimer of Opinion?

  7. ‘Qualified Audit Report’ –when is it given?

  8. Explain in brief the role of CAG on preparetion and reporting of financial statements of public sector companies.

  9. Explain the role of SEBI in regulation and control of capital market in India OR Role of SEBI with regards to listed companies.

  10. Explain in brief the role of Department of Company Affairs for the enefits of public, investors and corporate sector.

  11. What are the provisions of Companies Act, 1956 that ensures the “Independence of Auditor” with respect to appointment of auditor itself?

  12. What special liability has been imposed by the Companies Act, 1956 on the Company Auditor?

  13. What special liability has been imposed by the Banking Regulations Act, 1949 on the Auditor of Banking Companies in India?

  14. Why is it important for an Auditor to remain independent? What are the provisions relating to the appointment of an auditor under Companies Act which ensures the independence?

  15. Discuss briefly how do the provisions of Companies Act ensure independence of an auditor.

  16. What are the qualifications, disqualifications, rights and duies of a statutory auditor of a company?

  17. What are the duties of an auditor under the Companies Act, 1956?

  18. What is Professional Misconduct?

  19. Explain the comcept of professinal misconduct as per the Chartered Accountants act, 1949. Give four instances of the same.

  20. Ashok was appointed by the Central Government as a special auditor under Section 233A of the Companies Act. He accepted that appointment and proceeded with the work without communicating with the statutory auditor of the company.

  21. Mr. Yatin who had passed the final examination of the Institute of Chartered Accountants of India, applied to the Institute to be enrolled as a member. Before his name was registered, he issued a certificate to certain firm of exporter, certifying the amounts of their imports. Do you think that Mr. Yatin acted properly? Give reasons.

  22. Mr. Shah is a CA and is representing his client in an Income Tax Appeal. Shah has quoted to charged a flat fee of 15% of the expected relief to his client as a result of the appeal. Comment on the same.

  23. Mr. P chidambaram a practicing Chartered Accountant has accepted the audit of a company in which his wife Mrs. Chidambaram is a shareholder, Is there misconduct? Will your ans change if MRs. Chidambaram is a director of the same company?

  24. How can a auditor be removed?

  25. Role of ethics and regulation in the Auditing Profession.

  26. What is the role of Auditors in Corporate Governance?

  27. Explain the need and importance of Audit Committee. What are its functions?

  28. Explain the role of SEBI.

  29. Discuss the importance of Corporate Governance in the Indian context.

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