Acharya N G Ranga Agricultural University 2006 Diploma Accounting & Finance Auditing & Costing - Question Paper

Auditing & Costing
April 2006
Time: three Hours
Marks: 100
NB:

1. ques. Nos. one and six are compulsory and ans any 2 from the remaining fromeach part.
2. Figures to the right indicate full marks.
3. Working should be part of ans.
4. ans both the parts in the identical answer-book.

part I-(Auditing)

* Q.1 (a) What do you mean by Vouching? 10
*
How would you vouch the followings?

*
1. (i)Cash Sales
2. (ii)Travelling Expenses
* (b) Distinguish ranging from Auditing and Investigation. 8
* Q.2 (a) What is test checking? explain its advantages and disadvantages. 8
* (b) elaborate the objectives of verification? 8
* Q.3 (a) discuss the terms "Internal Control","Internal Check" and "Internal Audit". 8
* (b) elaborate the rights of a Company Auditor? 8
* Q.4 (a) explain the procedure for Removal of a Company Auditor. 8
* (b) Scrutinise and comment on the subsequent Ledger Accounts. In the Books of ADD Ltd. 8
*
Plant and Machinery A/c.

Dr. Cr.
Date Particulars Rs. Date Particulars Rs.
01-01-2005 To Balance b/fd. 12,50,000 31-03-2005 By Sale of Machinery A/c. 3,00,000
01-06-2005 To Bank A/c. 6,50,000 31-10-2005 By Asset Discarded A/c. 1,50,000
01-07-2005 To Bank A/c. 50,000 31-12-2005 By Balance c/fd. 15,00,000
(Installation)
19,50,000 19,50,000

*
Provision for Depreciation on Plant and Machinery A/c.

Dr. Cr.
Date Particulars Rs. Date Particulars Rs.
31-03-2005 To sale of Machinery A/c 2,40,000 01-01-2005 By Balance b/fd. 6,30,000
31-10-2005 To Asset Discarded A/c 1,45,000 31-12-2005 By P & L A/c. 1,22,500
31-12-2005 To Balance c/fd. 3, six 7, 500
7,52,500 7,52,500

*
*
* Q.5 Write short notes on any 4 of the followings:- 16
* (a) Errors of Principle
*
*
* (b) Auditing in Computer Environment.
*
* (c) Appointment of an Auditor in Casual Vacancy.
*
* (d) Audit in Depth.
*
* (e) Qualified Audit Report.
*
(f) Concept of actual and Fair View.
part II — (Cost Accounting)
* Q.6 20
*
Details Process A Process B Process C
Rs. Rs. Rs.
Indirect Material 1,00,000 18,750 16,550

Earning:   Approval pending.