Adikavi Nannaya University (ANU) 2006 Diploma Accounting & Finance Auditing & Costing - Question Paper

Auditing & Costing
Octomber 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) discuss Basic Principles of Auditing. 10
* (b) How would you vouch the followings ? 8
*
1. (i)Interest Received on Investments.
2. (ii)Cash Purchases of Stationery.
* Q.2 (a) elaborate the different techniques of Auditing ? 8
* (b) ) discuss in detail the provisions of the Companies Act, 1956, regarding appointment of an Auditor. 8
* Q.3 (a) explain the disclosure requirements of "SHARE CAPITAL" as per schedule VI of the Companies Act, 1956. 8
* (b) elaborate the contents of Good Audit Report ? 8
* Q.4 (a) describe and discuss the term "Auditing". 8
* (b) Scrutinise and provide your comments as an Auditor on the subsequent Ledger Account. In the Books of M/s. GEC International. 8
CEG International Account.

Date Particulars Amount
Rs. Date Particulars Amount
Rs.
1-7-2004 To Balance b/fd. 10,000 31-7-2004 By Bank 10,000
1-8-2004 To Sales 10,000 1-8-2004 By Bills Receivables 11,000
1-8-2004 To Debit Note 2,000 1-8-2004 By Credit Note 1,000
(Rate Difference) (Spoiled Goods)
2-9-2004 To Sales 15,000
4-9-2004 To Bills Receivables 11,000 4-9-2004 By Bills Receivables 11,250
4-9-2004 To Interest 220 20-9-2004 By Bank 14,250
4-9-2004 To Noting Charges 30 20-9-2004 By Discount 750
15-09-2004 To Sales 20,000 30-9-2004 By Bank 17,500
30-9-2004 By Bed debts 2,500
Total 68,250 Total 68,250
*
* Q.5 Write short notes on any 4 of the followings:- 16
*
* (a) Internal check.
*
* (b) Secret Reserves
* (c) Contingent Liability
* (d) Audit in Computer Environment
* (e) evaluation of Closing Stock.
(f) Importance of Internal Audit.
part II — (Costing).
* Q.6 M/s AB & Associates, a partnership firm comprosing of partners A and B, undertook a contract to build a Bridge for Rs. 20,00,000 and commenced the work on 1-10-2003. 20
* The subsequent is the Trial Balance of firm as on 30-9-2004 :–
Particulars Debit (Rs.) Particulars Credit (Rs.)

Earning:   Approval pending.