Finance

Auditing - Question Bank

Unit 1
1. Explain in brief the different types of Errors.
2. Explain Fraud and the different types of Frauds.
3. Explain Teeming and Landing
4. Distinguish between Accounting and Auditing.
5. Distinguish between Investigation and Auditing.
6. Explain Interim Audit and its advantages and disadvantages.
7. Explain primary and secondary objects of Auditing
8. Explain Interim audit & its advantages and disadvantages.
9. Explain Window Dressing. What are the objections against it?
10. Explain objectives of auditing and the basic principles of auditing.
11. Explain the concept of True and Fair View.
12. Explain different types of Frauds. What are the duties of an auditor in respect of frauds.
13. Explain –secret reserves affect and window dressing.

Write a Note:

1. Statutory audit
2. Errors of commission
3. Interim Audit
4. Types of Frauds
5. Feature of Auditing
6. Manipulation of Records
7. Secret Reserve
Unit 2
1. What steps should be taken by the auditor before commencement of audit?
2. Explain Audit programme and its advantage and disadvantage.
3. Explain Audit Programme. What are the essentials of Audit Programme?
4. Explain Audit Programme. What factors should the auditor consider while developing audit programme?
5. Distinguish between Principles of Audit and Techniques of Audit.
6. Explain “Current File”. Give Example of its contents
7. Explain Audit Note Book and its contents.
8. List any 4 types of substantive audit procedures.
9. Distinguish between Internal Audit Evidence and External Audit Evidence.
10. What do you mean by the term –Audit Note?
11. Explain in brief- Risk of Under- Reliance.
12. Explain “Permanent Audit File” Give examples of its content.

Write a Note:

1. Contents of audit notebook
2. Precaution of audit programme.
3. Inspection as a audit technique.
4. Essential of audit programme
5. Audit planning
Unit 3
1. Explain Test Checking and the advantages and disadvantages of Test Checking
2. Explain Routine Checking in a Auditing.
3. Explain the term “Internal Control” and its objectives.
4. In audit what do you mean by Test Check Method of checking? What precaution should be taken by the auditor so that standard of audit can be maintained by checking selected item of similar nature?
5. Write the duties of an auditor in respect of internal check.
6. Explain Internal Control. What are the duties of an auditor relating to internal control?
7. Explain Test Check and its advantages and limitations in auditing.
8. Distinguish between Internal Audit and Statutory Audit.
9. Explain audit note-book and write its contents. How does it differ from “Working Paper?”
10. What is test checking in auditing? Explain its objectives.
11. Distinguish between Audit of accounts of Partnership Firm and a Limited Company.

Write a Note:

1. Letter of Weakness
2. Internal Control
3. Internal check
4. Test checking
5. Auditing depth
Unit 4
1. Define Audit Sampling. Explain the method of selecting sample items.
2. Explain the term “voucher” and the importance of vouching in the audit.
3. How would you vouch-(i) Advertisement Expenses (ii) Cash Sales?
4. How would you vouch the following: (a) Cash Purchases (b) Dividend Income?
5. Explain the term vouching and the objectives of vouching.
6. Explain the meaning and objectives of Verification.
7. Explain Vouching and the objectives of vouching? How would you vouch rent received?
8. Explain Audit sampling and the method of selecting sample items.
9. How would you vouch the following: (i) Advertisement Expenditure (ii) Interest Earned?
10. Explain the term Valuation. How is valuation of assets and liabilities importance in auditing?
11. Describe the different basis on which different assets are valued.
12. What is the process of physical stock taking?

Write a note:

1. Verification
2. Verification of unsecured loan
3. Principles of Verification
4. Checking Entry in Books
5. Inventory
6. Points to be considered in vouching
7. Procedure of stock-trading
8. Objectives of Valuation of assets
9. Types of Mortgages