T

INSTITUTE OF CHARTERED SECRETARIES OF BANGLADESH

CHARTERED SECRETARY EXAMINATION . JANUARY 2021
PROFESSIQNAL LEVEL - II
504 : SECRETARIAL AND MANAGEMENT AUDIT

Timeallowed:3hours Total marks: 100

Note: Separate answer book to be usedfor each part. Dffirent parts of the same question must be
answered in one place in order of sequence.

PART.A
SECRETARIAL AUDIT. 50 MARKS
(Answer any three questions including Question no. 1)

you have been appointed as the Secretarial Auditor of Alpha Limited, a listed company, for
conducting Secretarial Audit for the financial yeff 2019-2020. During the audit, you find the
following information :
a) This year company constituted a Nomination and Remuneration Committee (NRC). Mr.
Mustaq Khan, Chairman of the Company was appointed as the Chairman of the NRC.
b) Mr. Akram Khan, Director Finance resigned from the Company.
Mr. Zahangir, Director, did not attend the meetings of the Board of Directors of the Company
"i during the last twelve months without the leave of absence.
d) fhey dia not disclose the Code of Conduct and Directors information in the Company's
website.
Please advise the Board of Directors regarding your observation. (4.5x4):18

2 a) ,'secretarial Audit is to be on the principle of 'Prevention is better than cure' rather than a
post mortem exercise and to find faults." Explain.
b) Lirt out the check points to'be observed by a Company Secretary while conducting the
Secretarial Audit with regard to Quorum of the meetings as per Bangladesh Secretarial
Standard. You being appointed as a Practicing Chartered Secretery examine whether there
has been any violation.
c) Mention the time within which public announcement is required to be made to the Stock
Exchange under the following circumstances:
i) Adoption of Final Accounts;
iil acquisition of shares. (6+6+4):16

J a) Explain professional misconduct pursuant to section 19 of the Chartered Secretaries Act,

2010.
b) Who is a Chartered Secretary in Practice? How to obtain a Private Practice Certificate?
Discuss the list of the services to be rendered by a Chartered Secretary in Practice. (6+4+6p16
"i
4 Write short notes on any four of the following:
a) Special Audit;
b) Internal Audit;
c) Statutory Audit;
d) Qualified Opinion;
e) Registration of charges.
(4x4):16
0 Dividend ComPliance RePort.

(Contd. .. P12)
 [Page-2]

PART.B
MANAGEMENT AUDIT- 50 MARKS
(Answer any three questions including Question no, 1)

1 a) As a Management auditor, do you consider it necessary to have a system based audit?

b) Explain the roles and responsibilities of Management, Board of Directors and Audit
Committee on the internal control systems of the Company. (8+10;:13

2 a) Briefly discuss the key areas ofthe Management Auditor rieeds to perform.
b) How an internal auditor evaluates the internal control and accounting procedures of a service
company listed in a Stock Exchange? (8+3;:16

J- a) What do you mean by an unqualified/ unmodified opinion by an Auditor?

b) What is Forensic Audit Report? Highlight its major contents.
c) What is materiality concept in auditing? Explain. (6+S+S;=16

4 Write short notes on anyfour of the following:

a) Audit Trail;
b) Operational Audit;
c) Risk Management;
d) Cost Audit Report;
e) Compliance Testing;
0 Related Party Transaction. (4x4):16

THE ENI)