University of Mumbai 2006 B.A Economics Auditing %26 Costing omber - Question Paper

Auditing & Costing
Octomber 2006
Time: three HoursMarks: 100
NB:
ques. Nos. one and six are compulsory and ans any 2 from the remaining fromeach part.
Figures to the right indicate full marks.
Working should be part of ans.
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 ? eight

(i)Interest Received on Investments.
(ii)Cash Purchases of Stationery.
Q.2 (a) elaborate the different techniques of Auditing ? eight
(b) ) discuss in detail the provisions of the Companies Act, 1956, regarding appointment of an Auditor. eight
Q.3 (a) explain the disclosure requirements of "SHARE CAPITAL" as per schedule VI of the Companies Act, 1956. eight
(b) elaborate the contents of Good Audit Report ? eight
Q.4 (a) describe and discuss the term "Auditing". eight
(b) Scrutinise and provide your comments as an Auditor on the subsequent Ledger Account. In the Books of M/s. GEC International. eight
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.)
Plant & Machinery 2,50,000 Capitals : A 1,20,000
Office Buildings 3,00,000 B 80,000
Materials Purchased 4,20,000 Advanced From Contractee 6,00,000
Wages 1,40,000 Bank Overdraft 1,40,000
Sub-contracting Charges 80,000 Outstanding Wages 10,000
Interest 10,000 Creditors 1,50,000

Earning:   Approval pending.