audit
PAPER – 6 : AUDITING AND ASSURANCE
QUESTIONS
Nature of Auditing
1.
(a) Briefly explain the relationship between Auditing and Behavioural Science.
(b) “The auditor fails to obtain sufficient information to form an overall opinion on the matters contained in the financial statements.” In the light of the above statement briefly explain the circumstances and opinion expressed by an auditor, where he is unable to obtain sufficient audit evidence.
2.
Auditors of M/s Santa Banta (P) Ltd. were changed for the accounting year 2010-11.
However there was no change in the position of closing stock which remained at
` 400 lacs . The auditors of the company propose to exclude the audit of closing stock of
` 400 lacs from their audit programme on the understanding that it pertains to the preceding year which was audited by another auditor. Comment.
Basic Concepts in Auditing
3.
Write a short note on the following
(a) Fundamental Accounting Assumptions
(b) Disclosure of Accounting Polices
(c) Auditor’s Independence
4.
(a) XYZ Ltd sold scrap of `10,000 during the F.Y 2010-11. Auditor of the company wants to verify the sale proceeds from scrap but the accountant says that no need to verify the same because the company had a good accounting and costing system. Comment.
(b) What is “Audit Evidence”? Discuss the principles, which are useful in assessing the reliability of audit evidence.
Preparation for an Audit
5.
Briefly enumerate the circumstances where a response to a positive confirmation request is necessary to obtain sufficient appropriate audit evidence.
6.
Write a short note on the following
(a) Knowledge of client’s business
(b) Audit working papers
(c) Audit Notebook
Internal Control
7.
(a) States the steps for proper internal control over stores of a large textile mill Co.
© The Institute of Chartered Accountants of India
PAPER – 6: AUDITING AND ASSURANCE
51
(b) What are the special steps
QUESTIONS
Nature of Auditing
1.
(a) Briefly explain the relationship between Auditing and Behavioural Science.
(b) “The auditor fails to obtain sufficient information to form an overall opinion on the matters contained in the financial statements.” In the light of the above statement briefly explain the circumstances and opinion expressed by an auditor, where he is unable to obtain sufficient audit evidence.
2.
Auditors of M/s Santa Banta (P) Ltd. were changed for the accounting year 2010-11.
However there was no change in the position of closing stock which remained at
` 400 lacs . The auditors of the company propose to exclude the audit of closing stock of
` 400 lacs from their audit programme on the understanding that it pertains to the preceding year which was audited by another auditor. Comment.
Basic Concepts in Auditing
3.
Write a short note on the following
(a) Fundamental Accounting Assumptions
(b) Disclosure of Accounting Polices
(c) Auditor’s Independence
4.
(a) XYZ Ltd sold scrap of `10,000 during the F.Y 2010-11. Auditor of the company wants to verify the sale proceeds from scrap but the accountant says that no need to verify the same because the company had a good accounting and costing system. Comment.
(b) What is “Audit Evidence”? Discuss the principles, which are useful in assessing the reliability of audit evidence.
Preparation for an Audit
5.
Briefly enumerate the circumstances where a response to a positive confirmation request is necessary to obtain sufficient appropriate audit evidence.
6.
Write a short note on the following
(a) Knowledge of client’s business
(b) Audit working papers
(c) Audit Notebook
Internal Control
7.
(a) States the steps for proper internal control over stores of a large textile mill Co.
© The Institute of Chartered Accountants of India
PAPER – 6: AUDITING AND ASSURANCE
51
(b) What are the special steps