An Approach to BC-402 _ Auditing (B.

Com Part-II) Education, with Excellence

AUDITING
Introduction
1. Explain the qualities required in an auditor? Also explain the main objects of auditing? 2004,12,14
What do you meant by commercial frauds? Explain its different kinds. 2013
Explain different types of accounting errors. How would you discover them? 2015,17
2. What is the difference between accounting and auditing? 2005,06,10,16
3. Briefly explain benefits of audit to the business, general public and states. 2007,11
Internal Control System
4. Define the term internal control, internal audit and internal check. Suggest a suitable system in Internal
Check for
 Principles of ICS (Manufacturing Business/Large scale departmental store) 2009,11,14,16
 Sales (Sales of trading business) 2004,07,12
 Cash (Cash dealing of a Manufacturing Company/Cash Receipts & Payment) 2005,13
 Purchases (Trading Concern) 2008,15
Types of Audit
5. Define continuous audit and its merits and demerits? 2005,06,08,13
6. Define final audit and its merits and demerits? 2011
7. Define interim audit and its merits and demerits? 2007,10,15,17
Audit Planning
8. Explain the necessary information that the auditor must collect before commencing a new audit. 2010
9. What is an audit program? Give its advantages and disadvantages? 2014
10. Define audit working papers. Explain objects/essentials/advantages of a good auditing working paper?
2006,16
Internal Auditor
11. Define and distinguish between Internal and External audit. 2004,09,17
Auditor and Legal Environment
12. Explain the legal provision relating to the appointment of an auditor of the Public Ltd. Company.
2005,08,11,12,14
13. Briefly explain qualification and disqualification of an auditor of public ltd. Company? 2009
14. Explain the legal provision relating to the removal of an auditor of the Public Ltd. Company. 2014,16
15. Briefly discuss the rights and duties of an auditor. 2006,10,13,17
Liabilities of Auditor
16. Under what circumstances an auditor can be held liable for
 Negligence (Client) 2005,07,09,12,13,14,15,17
 3rd Party 2008,10,16
 Criminal Liability 2004,06,12,15,16
 Misfeasance (Client) 2005,08,10,13,14,17
 Liability for Libel 2004,07
Auditor’s Report
17. Explain an un-qualified/qualified annual audit report? Discuss the audit work involved in the submission of
such report to the shareholders of the Public Ltd. Company? Give Specimen 2004,09,12/2005,10,12,13
18. What is Statutory Report? What work has been performed by the Auditor in this respect also give specimen.
2006,08,11,16
19. Explain the audit work required for submission of prospectus report of Public Ltd. Company. 2007,15

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An Approach to BC-402 _ Auditing (B.Com Part-II) Education, with Excellence

Vouching
20. Define vouching. Describe the technique of vouching? 2014
21. Define vouching. Briefly explain the necessary to steps to be taken in vouching of “purchase & sale”. 2017
Verification
22. Define verification and elaborate technique of verification? 2010,12,13
Specialized Industry Audit
23. Explain the “Special Points” which an auditor should be kept in mind while examining the accounts of
 Bank 2004,06,15
 Insurance Company 2004,10,17
 Textile Mill 2011,16
 Sugar Mill) 2005,09
 Hotel 2013
 News Paper 2007,12
 Cement Plant 2008,14
Investigation
24. Define investigation. How does it differ from auditing? 2011
25. How would you investigate the account of a company for
 Discovering the frauds of cash 2007
 On behalf of a loan giving agency 2009,15
26. How would you vouch following:
 Receipts from Debtors 2004  Closing Stock 2009
 Bills Receivable 2004  Bank Loan 2009,14
 Sales of Fixed Assets 2004  Debtors 2009
 Payment under hire purchase &  Purchase of stock 2011
installment 2004  Sales Commission Paid 2011
 Plant & machinery 2005,14  Cash Sales 2012
 Share Capital 2005  Wages & Salaries 2012
 Good will 2005,14  Dividend Income 2012,13
 Wages 2006  Traveling Expenses 2012
 Capital Expenditure 2006  Sales of Investment 2013
 Investment 2006,14  Subscription Received 2013
 Sales of securities 2006  Cash Purchases 2015
 Repairs Expenses 2007  Credit Purchases 2015
 Markup Expenses 2007  Credit Sales 2015
 Rent Income/Rent Received 2007,13
27. How will verify the following:
 Investment 2004
 Land & Building 2004
 Stock in trade 2004
 Cash in Hand 2017
 Cash at Bank 2017
 Land & Building 2017
 Trade Marks 2017

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