No.

of Printed Pages : 4 I ECO 0121

-

BACHELOR'S DEGREE PROGRAMME

LC) Term-End Examination
00 June, 2017
ti
CD
ELECTIVE COURSE : COMMERCE
ECO-012 : ELEMENTS OF AUDITING
Time : 2 hours Maximum Marks : 50
Weightage 70%

Note : Attempt any five questions. All questions carry equal

marks.

1. What do you mean by window-dressing of 4, 6

Balance Sheet ? How would an auditor ensure
that the Balance Sheet of his client has not been
window-dressed ? Explain.

2. Explain the effect of the following accounting 5, 5

errors in the account books of any business entity.
(a) Errors of Omission
(b) Errors of Principle

3. (a) Explain the importance of vouching. 5

(b) How will you judge the authenticity of a 5
voucher ?

4. (a) How is verification different from 5

valuation ?
(b) How will you, as an auditor, assess the 5
existence of goodwill in a business firm ?
Explain with an example.

ECO-012 1 P.T.O.
5. Write a detailed note on "Auditor as a watch dog 10
and not a blood hound". Give legal decisions, if
any, in this connection.

6. What do you understand by 'Divisible Profits' ? 4, 6

How would you, as an auditor, determine divisible
profits of a company ?

7. What do you mean by 'Clean audit report' ? To 5, 5

what extent does the auditor's report guarantee
the accuracy of accounts ?

8. Explain clearly the meaning, objectives and 10

limitations of Management Audit.

9. Write short notes on :

(a) Need for Internal check system 5
(b) Role of Auditor as a Valuer of company 5
assets

ECO-012 2