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WBA&AS Departmental Question - AUDIT

1. “The utility of the audit program can be retained and enhanced only by keeping
the program and also the client’s operations and internal control under periodic
review so that inadequacies or redundancies of the program may be removed” –
Discuss stating clearly the advantages of an audit program. [6] [June 2023]

2. What is an AUDIT PROGRAMME? [2] [Dec 2021] [June 2014]

Explain the advantages of an audit programme. [10] [Dec 2021][June 2014]
Explain the disadvantages of an audit program. [4] [June 2023]
Explain whether an auditor should strictly confine his/her function as per audit
programme. [4] [Dec 2021]

3. Prepare the AUDIT PROGRAMME of a Hospital. [16] [June 2018] [Dec 2015]
Prepare an audit programme of audit of a College. [16] [June 2016]
Draw an audit programme of a charitable society. [16] [June 2015]

4. What do you mean by VOUCHING? [4] [Dec 2021] [June 2018]

Is routine checking included in vouching? [2] [June 2019]
How does vouching differ from routine checking? [10] [June 2019]
Features and objectives of Vouching. [7+7] [June 2018]
Discuss the salient features of vouching. [8] [June 2015]
Why it is called the backbone of audit? [8] [June 2015]

5. “Vouching of transactions is the essence of audit” – Discuss. [8]

[June 2016] [June 2014]
Vouching has been described as “the essence of auditing”. Amplify this statement
and why you should attach such importance to vouching? [16] [Dec 2013]

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6. What is the object of VERIFICATION of assets? [4] [Dec 2018]

Distinguish between Verification and Valuation. [8] [Dec 2015] [Dec 2014]
[June 2012]
What do you mean by the term verification? What are its objectives? [12]
[June 2014]
What is meant by the term “Verification of Assets”? [4] [Dec 2013]
How does it differ from the term “Valuation of Assets”? [4] [Dec 2013]
State the importance of verification and valuation of assets from the point of
view of an auditor of a Limited Company. [8] [Dec 2013]

7. How will you VOUCH/VERIFY the following items?

(a) Goods sent on consignment [2 ½] [June 2023] [Dec 2018]
(b) Foreign travel expenses [2 ½] [June 2023]
(c) Receipt of capital subsidy [2 ½] [June 2023]
(d) Provision for income tax [2 ½] [June 2023] [June 2019]
(e) Land and Building [2 ½] [Dec 2022]
(f) Patent Right [2 ½] [Dec 2022] [Dec 2018]
(g) Closing Stock [2 ½] [Dec 2022]
(h) Sundry Debtors [2 ½] [Dec 2022]
(i) Payment of wages [6] [Dec 2021] [Dec 2014]
(j) Payment of salaries [6] [Dec 2021]
(k) Leasehold Property [4] [Dec 2021] [June 2019] [June 2018-8]
(l) Furniture, Fixture and fittings [4] [Dec 2021]
(m) Trademarks [4] [Dec 2021]
(n) Motor Vehicle [4] [Dec 2021]
(o) Freehold property [4] [Dec 2020] [June 2014]
(p) Copyright [4] [Dec 2020] [Dec 2018]
(q) Asset bought on hire purchase agreement [4] [Dec 2020]
(r) Sores and spare parts [4] [Dec 2020]
(s) Outstanding liabilities [4] [June 2019]
(t) Plant & Machinery [4] [June 2019]
(u) Following outstanding liabilities

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(i) Commission payable to a travelling agent. [4] [Dec 2018]

(ii) Audit fees [4] [Dec 2018]
(iii) Freight and Carriage [4] [Dec 2018]
(iv) Wages outstanding [4] [Dec 2018]
(v) Work in progress [4] [Dec 2018]
(w) Cash and Bank Balances [8] [June 2018]
(x) Preliminary Expenses [4] [June 2016]
(y) Travelling Expenses [4] [June 2016]
(z) Loan received [4] [Dec 2014]
(aa) Payment creditors [4] [Dec 2014]
(bb) Cash Purchase [4] [Dec 2014]

8. Distinguish between verification and valuation. How you will verify and value –
Investment, Debtors, Work-in-Progress, Bills receivables. [16] [June 2012]

9. Explain the PROVISIONS OF THE COMPANIES ACT, 2013 regarding

[5/6/8/10]
(a) Appointment of an auditor [June 2023] [Dec 2022] [Dec 2021] [Dec 2018]
[June 2016]
(b) Removal of an auditor [June 2023] [Dec 2022] [Dec 2020] [June 2016]
[June 2014]
(c) Registration of company auditor [Dec 2022]
(d) What Circumstances a person is debarred from being appointed as an auditor
of the company [Dec 2021]
(e) Remuneration of an auditor [Dec 2020]
(f) Qualification of auditor [Dec 2020]
(g) Duties of an auditor [Dec 2018] [Dec 2014]
(h) Responsibilities of an auditor [Dec 2018]

10. The code of ethics for professional accountants, prepared by the International
Federation of Accountants (IFAC) identifies five types of threats. Explain briefly
each of these threats. [10] [June 2023]

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11. What is meant by INTERNAL CHECK? [2/4] [June 2023] [Dec 2021]
[June 2019]
Difference between Internal Check and Internal Control? [8]
[June 2023] [Dec 2018] [June 2014]
Explain the position of an auditor relating to internal check. [12]
[Dec 2021] [June 2019]
Explain are the advantages of Internal check system. [8] [Dec 2020]
Distinguish between Internal Check and Internal Audit. [8] [Dec 2018]

12. State the use of internal check for a business concern and for an auditor; and
give, in short, a scheme of internal check as regards the following (a) Receipt of
cash (b) Payment of wages. [4+4+4+4] [Dec 2013]

13. What do you mean by PERFORMANCE AUDIT? [4] [June 2022]

Give the objectives of Performance Audit. [4] [June 2022]
Distinguish between Performance Audit and Traditional Audit. [7]
[June 2022]

14. Devise a system of internal check for

(a) a large shop in a shopping mall. [8] [June 2023]
(b) a large departmental store which has large daily turnover. [8] [Dec 2020]

15. What are the steps to be taken before commencement of audit? [8/16]
[June 2023] [June 2015]
You have been appointed the auditor of a company for the first time. List the
steps you would take before starting the audit work. [16] [Dec 2018]

16. What are the steps to be followed by an auditor in respect of AUDIT OF

[8/10]
(a) A club [June 2023] [Dec 2022]
(b) A cinema hall [Dec 2022]
(c) An educational institution [Dec 2020] [Dec 2015]

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(d) A hospital [Dec 2020]

(e) Governmental Departmental Undertakings [Dec 2016]
(f) Government Companies [Dec 2016]

17. Discuss the special points to which you would give attention while auditing a
school or a Charitable Institution. [16] [June 2014]
18. On what points would you concentrate your attention at the time of conducting
audit of a Transport Company? [16] [Dec 2012]
19. Write the special points to be considered for audit of a hospital. [16] [June 2012]

20. Write SHORT NOTES on: [4]

(a) Audit notebook [Dec 2022] [June 2019] [June 2018] [Dec 2013]
(b) Audit-in-depth [Dec 2022] [Dec 2016] [June 2015]
(c) Contingent liabilities [Dec 2022] [June 2019] [Dec 2012]
(d) Propriety audit [Dec 2022] [Dec 2016]
(e) Audit Programme [June 2019]
(f) Audit Manual [June 2019]
(g) Auditor’s appointment [Dec 2018]
(h) Third party liability [Dec 2018]
(i) Test checking [Dec 2018]
(j) “True and fare” [Dec 2018] [June 2016]
(k) Management Audit [June 2018]
(l) Audit procedure [June 2018]
(m) Audit technique [June 2018]
(n) Social Audit [Dec 2016] [June 2015] [Dec 2012]
(o) Vouching [Dec 2016]
(p) Internal check [June 2016] [Dec 2012]
(q) CAG [June 2016] [June 2014]
(r) Verification of assets [June 2016]
(s) Internal Control [June 2015] [June 2012]
(t) Continuous Audit [June 2015]
(u) Duties of an auditor in respect of missing vouchers [June 2014]

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(v) Duties of an auditor of a sole proprietary concern [June 2014]

(w) Special features of audit of a Government Company [June 2014]
(x) Statutory Audit [Dec 2013] [Dec 2012]
(y) Cost Audit [Dec 2013]
(z) Capital Reserve [Dec 2013]
(aa) Deposit works [Dec 2012]
(bb) Surrender of savings [Dec 2012]
(cc) Re-appropriation of funds [Dec 2012]
(dd) Direction office [Dec 2012]
(ee) Qualified Audit Report [Dec 2012] [June 2012]
(ff) Routine Checking [June 2012]
(gg) Internal Control [June 2012]

21. “The relationship of auditing to accounting is close, yet their natures are
different, they are business associates, not parent and child.” – Discuss.
[10] [June 2022]

22. “Accounting is necessity, but auditing is luxury.” – Comment. [10]

[June 2022]

23. What is PROFESSIONAL SCEPTICISM? [6] [June 2022]

When is Professional Scepticism necessary? [9] [June 2022]

24. What do you understand by WINDOW-DRESSING of Balance Sheet? [5]

[June 2022]
What is the liability of auditor in connection thereto? [10] [June 2022]

25. State the circumstances when an AUDITOR of a company may be APPOINTED

by - [5]
(a) Board of Directors [June 2022]
(b) Members of the Company [June 2022]
(c) Central Government [June 2022]

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26. What is GOVERNMENT COMPANY? [4]

Explain the role of CA&G in respect of audit of Government Companies under
subsection (5), (6) and (7) of Section 143 of the Companies Act 2013. [12]
[Dec 2020] [June 2018]
Write the functions of C&A.G. in respect of audit of Union Govt. & State
Government. [8] [Dec 2015]
Write the functions of C&A.G. [8] [Dec 2014]
Do you think Government audit and audit of Govt Companies are same? If not,
give explanation in detail. [8] [Dec 2014]

27. Discuss the position of an auditor with reference to the Companies Act, 1956
regarding his duties and responsibilities. [16] [June 2019]

28. What is INTERNAL AUDIT? [6] [Dec 2018] [Dec 2012]

How it differ from Statutory Audit? [10] [Dec 2018] [Dec 2012]

29. “An Auditor is not a valuer”, “An auditor is intimately connected with values”. –
How would you reconcile these two statements? [16] [Dec 2016] [June 2015]

30. “An auditor is a watchdog, not a blood-hound” – Explain citing the case law.
[8] [Dec 2014]

31. Point out the main differences between an auditor’s report and an auditor’s
certificate. [10] [June 2016]

32. What do you mean by “Report with disclaimer”? [6] [June 2016]

33. What is ‘Teeming and Landing’ method of misappropriation of Cash? Give

Examples. [8] [Dec 2014]

34. What are the objectives of audit working paper? [8] [June 2014]

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35. What do you understand by the following and what are the duties of an auditor
in respect of these? [8+8] [Dec 2013]
(a) Depreciation Fund
(b) Sinking Fund

36. What do you mean by Divisible Profit? [4] [Dec 2012]

What considerations should be taken into account before declaration of
dividend? [6] [Dec 2012]
Discuss the duty of a company auditor regarding divisible profits. [6] [Dec 2012]

37. What do you mean by Auditing in Depth? [4] [Dec 2012]

What are its advantages and disadvantages? [6] [Dec 2012]
State the circumstances under which Auditing in Depth can be done. [6]
[Dec 2012]

38. Write the status of an auditor as an agent of shareholders and as well as an

officer of the company citing case laws. [16] [June 2012]

39. Write the liability of an auditor arising out of negligence with reference to
important case laws. [16] [June 2012]

©Arghya Acharya, Shalini Bhakat, Samarpan Bose, Garga Basak