Chhatrapati Shahu Ji Maharaj University 2008 B.Com AUDITING ( III) - Question Paper

B.Com.(Part II)Examination ,2008

AUDITING

(Section -A)

Attempt both ques. (5 marks each)

Q1: avg. capital employeed of M>K> Ltd. is 2,00,000 and its net profit for the past four yaers are Rs.20,000 .Rs. 30,000; Rs. 35,000 and Rs. 45,000 respectively .The menager of the company considered reasonable to transfer 10% of profit to General reserve .A fair return on avg. capital employed is 10%.caluculate the value of goodwill on the basis of superprofit method, if the goodwill is valued on the basis of three years purchase.
Q2: "Where Auditing ends Investigation starts ."Explain the statement.

(Section -B)

Attempt any 15 ques. (2 marks each)

Q3: elaborate the limitations of Auditing ?
Q4: explain the various kinds of errors .
Q5: What is internal check ?
Q6: What is Audit Book ?
Q7: explain Routine Checking,Test Checking and Intensive checking.
Q8: What points should be kept in mind while vouching ?
Q9: How goodwill is valued ?
Q10:Discuss the causes of depreciation.
Q11:Distinguish ranging from Capital Income and Revenue Income.
Q12:What are the qualifications of a Company Auditor ?
Q13:What is share certificate ?Discuss the duties of an auditor in this connection.
Q14:What is the difference ranging from Clean and Qualified report ?
Q15:What is the difference ranging from Investigation and Audit ?
Q16:What do you mean by Operational Audit ?
Q17:What is the need of Tax Audit ?
Q18:A company sold its branch and goodwill to a foreign co,mpany for Rs. 51,000. The directors to distribute this as dividend. provide your opinion in this proposal of the directors.
Q19:An Auditor obtains at the time of audit of company that 15% of profit is provided as commission to the manager of the company .What should he do in htis regard ?
Q20:Directors obtain on the revalution of plant an dmachinery that its value has become Rs. 1,75,000
from Rs.2,50,000.They have decided to debit profit and loss account by this depriciated value of Rs.75000. What should an auditor do in this regard?


(Section-C)

Attempt any one ques. (10 marks)

Q21:"An Auditor is a watch-dog but not a blood hound".Explain this statement.
Q22:"Voching is the backbone of Auditing".Expalain.
Q23:The Trial balance of a manufacturing concern at the close of its financial year showed the subsequent balance:
Rs.
Raw material and stores consumed 2,00,000
Salaries and Wages 50,000
Other expenses 1,00,000
Sales 3,00,000
The closing stock at selling price amounted to Rs.80,000.
The management wants to change the basis of evaluation of the closing stock from selling price to cost or market price whichever is less.work out the value of closing stock.

Earning:   Approval pending.