World University of Bangladesh

Department of Business Administration

Semester Final Exam

Course Code: ACC 1003 Course Title: Auditing
Program: BBA Semester: Fall 2022
Full Marks: 40 Batch: Mixed (Evening Batches)

Instructions:
i. Answer any four (4) of the following questions taking at least one from Part A.
ii. Figures in the right margin indicate full marks.
iii. Parts of the same questions are to be answered consecutively.
iv. If any similarity is found with your friends, both of you will get zero. Don’t share your
answer script with your friends.
v. Very little marks will be awarded if you answer by copying and pasting from online
sources.

Part A

1. a) Differentiate between error and fraud. 5

b) Explain the purposes of showing more or less profits by the fraudulent director. 5

2. a) How to establish and maintain a system of quality control in an audit firm? 5

b) Explain the sufficiency of audit evidence and appropriateness of audit 5
evidence.

Part B

3. a) Discuss the chances for which the misstatement arises in the form of fraudulent 5
financial reporting.
b) Mention the prospects for which the misstatement arises in the form of 5
misappropriation of assets.

4. a) What type of attitudes provides the scope of misstatements arising from 5

fraudulent financial reporting?
b) “Problematic or unusual relationships between the auditor and management 5
indicate the possibility of Fraud.” –Explain the statement.

5. a) In the audit of large entities, more than one auditor is appointed. What is the 5
obligation in such a situation?
b) “In the interest of both client and auditor, the auditor should send an 5
engagement letter.” –Explain the statement.

6. a) In which circumstances does the auditor provide an unqualified opinion? 5

Provide a pattern of unqualified opinion.
b) In which situations does the auditor deliver a qualified opinion? Explain with 5
samples.