The Institute of Chartered Financial Analysts of India University 2011 C.A Chartered Accountant Chartered Accountancy -Pcc - Mock Test Series 1 - Question Paper

(d) Related parties
(e) Permanent audit file
5. How will you vouch and/or verify the following?
(a) Research and Development expenses
(b) Foreign travel expenses
(c) Sale proceeds of Scrap Material.
(d) Borrowing from Banks
(d) Development of property
6. In which cases an auditor be appointed by special resolution? If a company fails
to pass a special resolution in such cases, who will appoint the auditor?
7. State the requirements of Schedule VI to the Companies Act,1956, in respect of
the disclosure of the subsequent items in the accounts of a limited company:
(a) Share capital
(b) Fixed assets
(c) Contingent liabilities
(d) Miscellaneous expenditure
8. An Audit of expenditure is 1 of the major components of Government Audit.
In the situation of "Government Expenditure Audit" write in brief, what do you
understand by:
(i) Audit against Rules and Orders
(ii) Audit of Sanctions
(iii) Audit against Provision of Funds
(iv) Propriety Audit
(v) Performance Audit.
PAPER – three : LAW, ETHICS AND COMMUNICATION
QUESTIONS
1. Mr. X, is employed as a cashier on a monthly salary of Rs.2,000 by ABC bank for
a period of 3 years. Y gave surety for Xs good conduct. After 9 months,
the financial position of the bank deteriorates. Then X agrees to accept a lower
salary of Rs.1,500/- per month from Bank. 2 months later, it was obtained that X
has misappropriated cash since the time of his appointment. What is the liability
of Y?
2. Ram, Rahim and Robert are partners of software business and jointly promises to
pay Rs.30, 000 to Raheja. Over a period of time Rahim became insolvent, but his
assets are sufficient to pay one-forth of his debts. Robert is compelled to pay the
whole. Decide whether Robert is needed to pay whole amount himself to Raheja
in discharging joint promise.
3. (a) What is meant by Anticipatory Breach of Contract?
(b) Mr. Dubious textile enters into a contract with Retail Garments Show Room
for supply of 1,000 pieces of Cotton Shirts at Rs. 300 per shirt to be supplied
on or before 31st December, 2006. However, on first November, 2006 Dubious
Textiles informs the Retail Garments Show Room that he is not willing to

Earning:   Approval pending.