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Audit Question for B.com hons

Unit I Concepts, need and purpose of audit

1. Fraud does not necessarily involve misappropriation of cash or goods.

2. “An auditor is not an insurer”— explain.
3. What is Internal Audit? It is compulsory for every limited company?
4. What do you mean by EDP Audit? And its problem.
5. Define Interim Audit and state its necessities.
6. Define the term ‘Auditing’. State objectives of independent financial audit. 2020
7. State the auditor’s duties towards detection and prevention of error and fraud.
8. What are the different kinds of fraud?
9. Define Interim Audit and state its two necessities
10. “An auditor is a watchdog and not a bloodhound” – Explain.
11. State the advantage and disadvantages of Continuous Audit.
12. Distinguish between errors and frauds. 2019
13. Distinguish between continuous audit and periodical audit.
14. distinguish between ‘Investigation’ and ‘audit’. 2020
15. What are the basic principles governing an audit? 2019
16. State the importance of Auditor’s Independence. 2019
17. What is balance sheet audit? How is it conducted? 2019
18. Discuss the scope of the financial audit as per relevant Standard on Auditing (SA). What are the
basic principles governing the financial audit? 2021
19. What are the means of doing fraud? Discuss the auditor’s responsibility towards detection and
prevention of fraud as per the relevant Standard on Auditing (SA). 2021

Unit II. Auditing Procedures and Techniques

1. Write a short note on ‘Audit Note – Book’.

2. What do you mean by Audit Working Papers? Can an auditor keep the audit working papers with
him? Who is the owner of Audit Working Papers?
3. What do you mean by auditing in depth?
4. Write short notes on Audit Memorandum.
5. What is Audit Memorandum? Is there any difference of it with Audit Programme?
6. What is Audit File? State items which are recorded in Permanent Audit File.
7. State different types of audit evidence.
8. What is Test Checking? What are the advantages of Test Checking? Give two examples of Cut-off
Checking procedure.
9. State six important aspects that are usually included in Audit Engagement Letters.
10. What do you mean by Substantive Testing in audit sampling?
11. Draft and audit programme for a college audit/University audit.
12. What do you mean by audit evidence? Discuss its importance. What are the various procedures of
obtaining audit evidence?2019
13. What essential steps are involved in conducting the audit of a hospital? 2019
14. What is audit programme? Discuss the advantages of conducting an audit according to a
predetermined audit programme. 2020
15. What are Audit Working papers? What do you mean by ownership of working papers relating to
audit? 2020
16. What is audit evidence? State the procedures to obtain audit evidence. 2021

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17. What do you mean by the analytical procedure in the auditing? Discuss the tools and techniques of
this procedure. State the circumstances when an auditor can rely on it.2021

Unit - III: Audit Risk and Internal Control System

1. What do you mean by audit risk? Discuss the different types of audit risk as per the relevant SA.
2021
2. Discuss the difference between Internal Control System and Internal Check system.
3. What is internal audit? Can a statutory auditor rely on the internal audit report? Discuss. 2021
4. What is internal audit? Is it compulsory for every company to have an internal audit system? State
with reference to the relevant SA to what extent should a statutory auditor rely upon internal audit.
2019
5. Define Internal Control. State its objectives. Distinguish between Internal Control and Internal
Audit. 2020
6. ‘Internal audit cannot replace internal check’ – Explain
7. What is Internal Check System? State its objectives. Write its differences with Internal Control
System.
8. Distinguish between Internal Audit and Statutory Audit.
9. Objectives of internal audit.

Unit—IV: Vouching, Verification and Valuation

1. What do you mean by verification and valuation of assets?

2. How will you vouch the following items -- Receipts: Cash Sale (2019), Collection from Debtors,
Interest and Dividend from Investment (2019, 2021), Sale of Fixed Assets. ii) Payments: Cash
Purchase, Payment to Creditors, Payment of Wages and Salaries, Advertisement Expenses,
Travelling Expenses (2019, 2021), Research and Development Expenditure (2021), Prepaid
Expenses.
3. Distinguish between vouching and verification.
4. What are the differences between verification and valuation of assets? (2021)
5. “verification forms an important part of the whole system of audit” – Critically examine the
statement. (2021)
6. How would you as an auditor verify the following: i) Non-current Assets: Goodwill (2020),
Patent and Copy Right, Leasehold Land, Plant and Machinery (2019), ii) Investments (2020) iii)
Current Assets: Inventory, Loan and Advance, Debtors (2019), Cash and Bank Balances iv) Non-
current Liability: Secured Loan (2019) v) Current Liability: Trade Payables (Sundry Creditors)
(2020).
7. “It is no part of an auditors’ duty to take stock” – Discuss briefly with reference to case laws.
8. Is there any necessity of verification of assets and liabilities after proper vouching? Discuss with
reason.
9. “Vouching is the essence of audit” – Discuss. (2020)
10. Do you think Routine Checking and Vouching are complementary to each other?

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Unit—V: Company Audit

1. Discuss the qualification of a Company Auditor. [2013, 2019] [5]

2. Discuss provisions of the Companies Act regarding appointment of auditor of a Joint Stock
Company. [2014, 2016, 2021] [10]
3. When can an auditor in a company be appointed by (a) BOD (b) Members of the company (c) Central
government? [2019] [10]
4. What are the statutory provisions regarding rotation of a company auditor? [2018]
5. What are the statutory provisions regarding removal of a company auditor? [2015,2017, 2021] [10]
6. How an auditor of a joint stock company can be removed before the expiry of his term? [2014] [4]
7. Discuss the rights and duties of an auditor as per provisions of the Companies Act. [2016] [5+5]
8. Discuss the liability of an auditor towards third parties. [2014] [4]
9. Discuss the provisions of the Company Act regarding remuneration of Auditor [2018]
10. What are the provisions of the Companies Act, 2013 regarding depreciation to be provided in the
accounts? [2021] [10]
11. What are the provisions for arrear depreciation in the Company Act? [2016] [4]
12. Discuss the provision regarding unclaimed dividend as per Company Act. [2013, 2015] [10]
13. Can payment of dividend out of past reserve be made when there is neither profit nor loss in the
current year? [2014] [5]
14. Can payment of dividend be made out of profit without writing off depreciation on fixed assets?
[2016]
15. Can dividend be paid out of current profit without making good past losses. [2010, 2014] [5]
16. Can payment of dividend out of current profit be made without writing off intangible assets.
17. Can payment of dividend out of current profit be made without writing off fictitious assets.
18. Can payment of dividend be made without making good capital losses?
19. Can payment of dividend be made out of capital profit? [2011, 2013]
20. Can payment of dividend be made out of profit prior to incorporation? [2016] [5]
21. Can payment of dividend be made out of capital? [2015] [5]
22. How will you as a Company auditor verify payment of dividend? [2018]
23. What is Joint Audit? [2017]
24. Discuss the principles to be followed in joint audit. [2013]
25. What are the steps to be taken by a statutory auditor before commencement of an audit of a company?
[2014]
26. “An auditor has no liability for negligence in the conduct of an honorary audit”.
27. ‘Information and means of information are by no means equivalent terms’ — explain.
28. “An auditor of a company is not responsible for un-detecting errors and frauds when there is nothing
to excite his suspicion.” Explain. [2017]
29. “An auditor is a watchdog not bloodhound” –Discuss. [2015]
“An auditor is not an insurer” –Discuss [2018

Unit – VI: Audit Report and Certificate

1. Distinguish between Auditor’s report and certificate. [2013, 2014, 2020] [10]
2. Explain the Different types of Audit report. [2016, 2017, 2018]
3. State the determining factors when an auditor is to give adverse or negative report instead of giving
a qualified report. [2014] [5]
4. State the provisions of the Company Act regarding contents of Audit Report as per company act
2013. [2014] [6]

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5. State the various elements of Audit Report as per SA 700. [2019, 2021] [10]
6. Explain the term ‘true and fair view’ in respect of audit of a joint stock company. [2015, 2021] [5]
7. Name the companies where CARO (Companies Auditor’s Report Order) is exempted. [2015] [5]
8. List the matters to be reported under CARO 2016. [2019] [10]
9. Discuss the factors to be considered while judging materiality at the time of audit of an organisation.
[2013] [6]
10. State the importance of the concepts of Materiality to an auditor. [2014, 2019, 2020] [5]

UNIT—VII: Other Thrust Areas

1. What is meant by ‘Social Audit”? Discuss the objectives of social audit. Do you justify the
introduction of Social Audit in India?
2. What is Management Audit? Discuss its advantages. [2013] [2+4]
3. What is Tax Audit? What are the objectives of Tax Audit?
4. What is Cost Audit and discuss its advantages. Explain the relevant provision of the Companies
Act in respect of such audit.
5. What is Cost Audit? What are the objectives of Cost Audit? [2013, 2016] [4+6]
6. Write short notes on Cost Audit. [2019, 2021] [5]
7. Write short notes on Tax Audit. [2014, 2020] [5]
8. Write short notes on Social Audit. [2015, 2019, 2020] [5]
9. Write short notes on Environment Audit. [2015, 2020] [5]
10. Write short notes on Performance Audit. [2019, 2021] [5]
11. Write short notes on Propriety Audit. [2020] [5]
12. Write a note on Management Audit. [2021] [5]

SUBHENDU KUNDU
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