Kamala Education Society’s

Pratibha college of Commerce and Computer Studies

Question bank
Course Name: Advanced Auditing Course Code (303)

Write Short Notes on

1. Vouching
2. Valuation and Verification
3. Audit Program
4. Audit of share capital
5. Audit report, contents and essentials
6. Composition of Audit Committees
7. Corporate Governance
8. Role of auditor in corporate governance
9. Audit under Computerized Environment
10.Computerized Information System Environment
11.Need of Internal Control
12.Profits and Divisible Profits
13.Audit of Debentures
14.Role, responsibilities and powers of audit committee
15.Dividend and proposed dividend
16.Use of computers in auditing
17.Computers Assisted Audit Technique
18.Audit tools

Fill in the Blanks

1. Auditing is a specialize function having complex, legal, economic &
implications
2. Auditing is Examination book of accounts, vouchers, document &
evidences
3. Auditing is Systematic & Critical examination of books of accounts,
document, record & vouchers.
4. The word audit is derived from the word Audire which means to
hear.
5. Fraud means wrong, bogus or false entries made in the books of
accounts.
6. Audit programs is the auditor’s plan of action, the system of internal
check & control.
7. A separate & up to date record book maintain by audit clerk is term
as Audit note book.
8. Valuable information collected by the auditor from various
statements Report, documents and other analytical reports is called
are called as Audit Working Papers.
9. Vouching is the process of comparing the Accounting Entries in the
Subsidiary books of Accounts with the documentary evidence.
10.Vouching is a means of establishing the truth of accounting data &
arithmetical accuracy of the same.
11.Transport receipts, telephone bill, Cash memo, etc. are example of
external vouchers.
12. Vouchers received from all the outsiders are called as external
vouchers.
13.Vouchers prepared by authorize or responsible person in the
organization as a documentary proof s are called as internal vouchers.
14.Checking denotes , checking entries, and posting to ensure the
arithmetical accuracy of the books of account
15.Voucher is foundation on which whole structure of accounting rests.
16.Verification is the process to confirm or verify the ownership,
valuation, possession of a particular assets or liabilities on the
balance sheet date.
17.Valuation is a process of testing the accuracy of the valuation of
assets & liabilities according General Accepted Accounting
Principles.
18.Auditing standards are issued by Financial Accounting Standards
Board.
19.AASB (Auditing & Assurance Standard Board) of India has given
formats of independent auditor’s reports on 1st May, 2015.
20. Auditing Practices Committee (APC) was constituted by ICAI on
17th September, 1982.
21. In July 2002, the auditing practices committee has been converted in
to Auditing & Assurance Committee Board.
22.As per Section 227 (2) it is obligatory on the part of auditor to submit
audit report to the members.
23. CARO 2003 is called as Companies Auditor Report Order 2003, Sec
227 (4A)
24.Divisible profit Section 205
25.Dividend- It is the distribution of divisible profit of the companies
among the shareholders.
26.A dividend recommended by the Board of Directors is termed as
Proposed Dividend.
27.The divided declare by the BOD before the preparation of final
accounts is known as Interim Dividend.
28.Investigation is a critical and special examination of the accounts &
records of business for a specific purpose.
29.Conduct of inspection & enquiry Section 207.
30.Search & Seizer sec. 209.
31.Appointment of investigator by central govt. - Sec. 210.
32.CIFO- (Serious Fraud Investigation Office) is a multidisciplinary
organization to investigate frauds. ( Established in 2nd July 2004 )
33.Corporate governance refers to practices by which organizations are
controlled, directed and governed (Clause 49).
34.Constitutions of Audit Committee- Section 177(1) of the companies
Act ,2013
35.CEO- Chief Executive officer, CFO – Chief Financial Officer, (
Clause 49)of SEBI gridlines
36.The CEO/CFO certifications are required under the Sarbanes- Oxley
Act of 2002.
37.The ideal side corporate board is 7 to 11 members.
38. The Audit committee shall convene meetings at least 4 times a year.
39. A set of specific clear & detailed instructions to do a particular job is
called Computer Program.
40.Standard Auditing Practices (SAP) defines the system of internal
Control.
41.CAT stands for Computer Assisted Audit Technique. It is a
fundamental tool used by Auditors.