CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
JAN2016
ASSESSMENT_CODE BB0013_JAN2016
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73911
QUESTION_TEXT
Explain the operational aspects of management audit
Objects and aim of the organization
financial plan & policies
production
sales and distribution
organizational control
SCHEME OF EVALUATION
operations
layout & physical equipments
personnel development
regulation
(explanation of at least 5 are required)
(2*5=10)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73912
QUESTION_TEXT
What are the contents of Audit Report
SCHEME OF
EVALUATION
1. Title (1 Mark)
2. Addressee (1.5 Marks)
3. Identification of Data under Audit (1.5 Marks)
4. Scope of the auditor’s examination (1.5 Marks)
5. Statement on matters prescribed by law or
Regulation and
professional requirements (1.5
Marks)
6. Auditor’s opinion (1.5 Marks)
7. Signature (1.5 Marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73913
QUESTION_TEXT
What is accounting? Briefly describe the different accounting concepts.
SCHEME OF
EVALUATION
Accounting is the language of business; affairs of a business unit are
communicated to others as well as to those who own or manage it
through accounting information which has to be suitably recorded,
classified, summarised and presented.
Accounting Concepts are:
1. Business Entity Concept
2. Money Measurement Concept
3. Cost Concept
4. Going Concern Concept
5. Dual Aspect Concept
6. Realization Concept
7. Accrual Concept
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
73914
QUESTION_TEXT
What is the secondary objective of auditing? Explain the various types of
errors.
SCHEME OF
EVALUATION
Secondary objective of auditing relates to detection and prevention of
Errors. Errors are generally innocent but sometimes errors which might
appear as innocent may be ultimately found to be due to fraudulent
manipulation and therefore auditor must pay attention to every error. The
following are the various types of
errors.
a. Classical Errors
• Errors of Omission
• Errors of Commission
b. Errors of Principles
c. Off Setting Errors
d. Errors of Duplication
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
118097
QUESTION_TEXT
Write a note on
a.
Circumstances under which cost audit ordered
b.
Advantage of cost audit to government
a.
SCHEME OF
EVALUATION
Circumstances under which cost audit ordered
i.
Price fixation
ii. Cost variation
iii. Insufficient management industry.
iv. Tax assessment
v. Trade dispetutes.
b. Advantage of cost audit to government
i.
To fix price of a control
ii. To fix selling price so under profiteering can be checked.
iii. Helps government to decide in favour of giving protection
to certain industries.
iv. Facilitates settlement outputs.
v. Ensures efficient running of business.
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
118098
QUESTION_TEXT
Explain the conventions used in while preparing Financial statement?
SCHEME OF
EVALUATION
1.
Consistency : The accounting practices should remain the same from
one year to another; for instance, it would not be proper to value stock-intrade according to one method one year and according to another method
next year. If a change becomes necessary, the change & its effect should
be stated clearly. (3 marks)
2.
Disclosure : Apart from legal requirements good accounting practice
also demands that all significant information should be disclosed. Not
only various assets, but also the mode of valuation should be disclosed.
Various types of revenues and expenses properly grouped must also be
disclosed. Whether something should be disclosed or not will depend on
whether it is material or not. Materiality depends on the amounts involved
in relation to the asset or transaction group involved or to profits.
(7 marks)
3.
Conservation : Financial statements are usally drawn up on rather a
conservative basis, windowdressing i.e. showing a position better than
what it is, is not permitted. It is also not proper to show a position
substantially worse than what it is. In other words, secret reserves are not
permitted. (10 marks)