Auditing — DU B.Com. (Hons.) Previous Year Question Papers

(a) "An auditor is a watchdog, not a blood hound." (b) "Secretarial audit is necessary to ensure good corporate governance, compliance, and risk management." What are the objectives of secretarial audit and explain in brief legal provisions included in the Companies Act, 2013 (9) regarding secretarial audit. (a) "The auditing principles are necessary to conduct a financial audit in an efficient, ethical and effective way." Justify the statement explaining at least six principles in brief. (9) (b) What are the challenges associated with auditing in a computerised system? Suggest ways to mitigate them. (9) 2. (a) Explain various techniques of obtaining Audit Evidence as per SA 500 with examples. (b) Write short notes on: (3x3) (i) Random sampling (ii) Stratified sampling (ii) Sufficiency and appropriateness of audit evidence (a) "The custody and ownership of working papers should be with the client." Do you agree with the statement? Support your argument with legal and professional viewpoints. (9) (b) "To ensure good corporate governance, The Companies Act, 2013 has made internal audit mandatory for certain classes of companies." Explain the statement. (9) (i) Freehold Land (ii) Loans and Borrowings (c) Write notes on: (2x3) (i) Auditor's liability for misstatement in prospectus. (ii) Remuneration of statutory auditor (a) Discuss the duties of an auditor regarding verification of inventory. Support your answer in the light of the legal judgements. (6) (b) Distinguish between Vouching and Verification as audit procedures. (6) (c) Explain in briefAuditor's duty to report on fraud. (d) Explain the role of Audit Committee in appointment of statutory auditor. (3) laye Hate (9) (b) What are the powers of a statutory auditor? (9) (a) Explain the auditor's liability for negligence towards client citing relevant cases. (9) (b) Discuss the provisions of The Companies Act, 2013 with regard to qualifications and disqualifications (any six) of the statutory auditor. (9) S. (a) Why was a need felt in India for a regulatory authority like NFRA? What types of companies and auditors fall under the jurisdiction of the (b) Define forensic audit. How is it different from financial audit? (9) (a) Write note on Audit of Loans and Advances of a banking company. (9) (b) Explain the role of auditor in verification of insurance premium in case of an insurance company. (9)