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Auditing Bcom 3rd year question papers for CU Bcom honours is given here. CU Bcom sem 5 auditing and assurance previous years question papers are helpful for your exam. We have provided here bcom 5th sem audit previous year question papers for cu with solutions on the Chapter 3 Internal control and Internal audit. You can download cu bcom sem 5 auditing question papers PDF from the link given below. For your semester 5 audit bcom honours exam preparation these cu previous year bcom honours solved question paper with important and suggested audit questions will definitely help you. The auditing bcom 3rd year question papers of internal audit and internal check covers CU B.Com. 5th semester question papers from the year 2015 to 2020. Auditing and Assurance exam of CU 5th semester is of 80 marks. Therefore these solved previous year audit questions will definitely help Calcutta University B.Com. 5th semester Honours and General students to get an idea of important audit questions for CU 5th sem exam.
CU sem 5 auditing previous year question papers with solved answers PDF
You can also download CU sem 5 previous year question paper on auditing
CU B.Com. 5th Sem Audit previous year question and answers (Chapter 3)
1.Prepare an Internal Control Questionnaire (ICQ) In Respect Of Wages In a
Manufacturing Concern. (10)
Ans: Internal control system in relation to payments of wages in a large manufacturing concern:
Objectives:
(a) To ensure that only approved and recognized workers get wages.
(b) To ensure that workers get the wages they deserve.
(c) To ensure that wages are really paid.
Internal control:
(a) The wage department of a large manufacturing concern should maintain a wage payment sheet containing information, namely name of the workers, date of birth, date of joining, wage payment method ,bank ,rate of wages, overtime wages, total wages, account number, IFSC code, etc.
(b) The worker should be identified by a responsible person of the department.
(c) The entire job of the wage department should be segregated in such a way that the task of onei checked by another.
(d) Person receiving the wage must sign or give a thumb impression (must be authenticated) in the Wage sheet.
(e) In case of electronic clearing system (ECS) workers must sign the wage sheet immediately after Transfer of wages in their respective bank accounts.
(f) Cash payment of workers needs to be made to the concerned individual or to an authorized duly attested by a competent person by checking the ID proof to minimize fraudulent activities. persie
(g) Below the wage sheet, the signature of the accountant, departmental head, and finance officer is Must.
(h) Comparisons between the wage statements will unearth the truth.
Example: Calcutta Municipal Corporation and Rajharhat-Gopalpur Municipality derive the success Of EPS by eliminating a sizable number of ghost workers from the wage statement.
2) How would you review the internal control procedure of insurance company ? (6)
Ans:- Internal control system is inevitable for any insurance company. The following procedures have to be followed for the internal control of an insurance company:
(a) The nature and size of the insurance company have to be identified first.
(b) Check if the insurance company is related with life, fire, health, etc.
(c) Life Insurance Corporation of India is related with life, General Insurance Corporation of India is related with medical claims for health, Oriental Insurance Company is related with fire.
(d) In any insurance company, the policy value has to be determined first.
(e) In no circumstances does the claim exceed the policy value.
(f) In case of death claims, the case of death is a vital one. It is followed by a death certificate issued by the medical officer and subsequently issued by the local authority.
(g) In case of fire insurance, the place of the fire and the causes of fire have to be identified. The report from the fire department is a must and the amount of claim must be authenticated by the solicitor firm.
(h) In case of health insurance, a medical report, doctor's advice, prescription, diagnostic report, or doctor's certificate is a must.
(i) Any claim settlement like life, fire, or health is made within three months.
j) If any delay occurs, the causes of delay have to be identified.
3) Difference between internal check and internal control system. (4)
Ans:
4) Can a statutory auditor rely upon the work of an internal auditor while performing his duties ? justify your answer mentioning relevant standards on auditing(SA). (6)
Ans: Reliance by Statutory Auditor on Internal Audit Work as per Section 139 of the Companies Act, 2013, statutory auditor is appointed by the Board of Directors, the Shareholders in the AGM, or by the CAG as the case may be to ensure the audit report is as per the provision of the law. On the flip side, an internal auditor is appointed by the management to examine, evaluate, and monitor the adequacy and effectiveness of internal control. An internal auditor may belong to an internal audit department or perform an equivalent function.
SA 610 states the guidelines for "Using the Work of Internal Auditor. As per the guidelines the statutory auditor can rely on the work of the internal auditor after assessing the task of internal control for the purpose of placing reliance upon the work.
The statutory auditor should consider the following aspects of internal audit work:
1. Judge the organizational status of the internal auditor
2. Scope of function of the internal auditor
3. Technical competence as a professional to act as an internal auditor
4. Due professional care expected from the internal auditor
The obiective of a statutory auditor and internal auditor are almost similar with the difference to submit a within the time frame. As the task of the statutory auditor is a time-bound game, comprehensive audit report he/she has to relay the task of the internal auditor provided it is really reliable. If anything is wrong within the internal audit report and which has been overlooked by the statutory auditor, the entire responsibility goes to the statutory auditor, not the internal auditor. Companies Act, 2013 or Standards on Auditing does not give any scope in this regard.
5) Prepare an Internal Control Questionnaire (ICQ) In Respect Of purchase of goods in a Manufacturing Concern. (10)
Ans: Internal Control Questionnaire in Respect Of purchase of goods:
Objectives:
(a) To ensure purchases are made as per requisition.
(b) To ensure purchases are made by taking concurrence from the finance department.
(c) To ensure purchases are made in accordance with an authorized order.
(d) To ensure that all purchases are recorded properly.
Internal control:
(a) Requisition must come from the respective departments.
(b) Purchase officer receives concurrence from finance department.
(c) Meeting of the Purchase Committee is called.
(d) Sealed quotations are invited.
(e) Tender Committee shortlists the quotation on the basis of least price, quality, and credential of the vendor.
(f) Finance Committee approves an appropriate tender on the basis of the recommendation of the Tender Committee and instructs the purchase committee to go ahead.
(g) Purchase order has to be placed in accordance with the recommendation of the finance committee.
(h) Goods or services are provided by the selected vendor.
(j) Goods or services are received in good condition.
(i) Proper accounting records have to be made and placed in the store keeper's room.
6) Define Internal audit. Distinguish it with internal control . Is internal audit mandatory as per provision of the companies act 2013? Discuss. (2+4+4)
Ans: Internal audit:
In the words of W.B. Meigs, 'Internal auditing consists of a continuous, critical review of financial and oper-ating activities by a staff of auditors, functioning as full-time salaried employees.
SA 610 stated that, 'Internal audit is a separate part of internal control system. The objective of internal audit is to determine whether other internal control systems are well designed and properly operated.
Distinguish between Internal audit and Internal control :
Provision of the companies act 2013:
As per Section 138 read with Rule 13 of the Companies (Accounts) Rules,2014,it is mandatory for the following class of companies to appointinternal auditors or a firm of internal auditors:
(a) Every listed company;
(b) Every unlisted company having paid up a capital Rs 50 crore or more or turnover of Rs 200 crore more or outstanding loan banks or Public Financial Institutions Rs 100 crore or more or outstanding deposits of Rs 25 crore or;
(c) Every private company having turnover of Rs 200 crore or more or outstanding loan or borrowing from banks or financial institutions of Rs 100 crore or more.
Ans: Internal control system in relation to payments of wages in a large manufacturing concern:
Objectives:
(a) To ensure that only approved and recognized workers get wages.
(b) To ensure that workers get the wages they deserve.
(c) To ensure that wages are really paid.
Internal control:
(a) The wage department of a large manufacturing concern should maintain a wage payment sheet containing information, namely name of the workers, date of birth, date of joining, wage payment method ,bank ,rate of wages, overtime wages, total wages, account number, IFSC code, etc.
(b) The worker should be identified by a responsible person of the department.
(c) The entire job of the wage department should be segregated in such a way that the task of onei checked by another.
(d) Person receiving the wage must sign or give a thumb impression (must be authenticated) in the Wage sheet.
(e) In case of electronic clearing system (ECS) workers must sign the wage sheet immediately after Transfer of wages in their respective bank accounts.
(f) Cash payment of workers needs to be made to the concerned individual or to an authorized duly attested by a competent person by checking the ID proof to minimize fraudulent activities. persie
(g) Below the wage sheet, the signature of the accountant, departmental head, and finance officer is Must.
(h) Comparisons between the wage statements will unearth the truth.
Example: Calcutta Municipal Corporation and Rajharhat-Gopalpur Municipality derive the success Of EPS by eliminating a sizable number of ghost workers from the wage statement.
2) How would you review the internal control procedure of insurance company ? (6)
Ans:- Internal control system is inevitable for any insurance company. The following procedures have to be followed for the internal control of an insurance company:
(a) The nature and size of the insurance company have to be identified first.
(b) Check if the insurance company is related with life, fire, health, etc.
(c) Life Insurance Corporation of India is related with life, General Insurance Corporation of India is related with medical claims for health, Oriental Insurance Company is related with fire.
(d) In any insurance company, the policy value has to be determined first.
(e) In no circumstances does the claim exceed the policy value.
(f) In case of death claims, the case of death is a vital one. It is followed by a death certificate issued by the medical officer and subsequently issued by the local authority.
(g) In case of fire insurance, the place of the fire and the causes of fire have to be identified. The report from the fire department is a must and the amount of claim must be authenticated by the solicitor firm.
(h) In case of health insurance, a medical report, doctor's advice, prescription, diagnostic report, or doctor's certificate is a must.
(i) Any claim settlement like life, fire, or health is made within three months.
j) If any delay occurs, the causes of delay have to be identified.
3) Difference between internal check and internal control system. (4)
Ans:
 |
| Click on the image to zoom (Source: OUP) |
4) Can a statutory auditor rely upon the work of an internal auditor while performing his duties ? justify your answer mentioning relevant standards on auditing(SA). (6)
Ans: Reliance by Statutory Auditor on Internal Audit Work as per Section 139 of the Companies Act, 2013, statutory auditor is appointed by the Board of Directors, the Shareholders in the AGM, or by the CAG as the case may be to ensure the audit report is as per the provision of the law. On the flip side, an internal auditor is appointed by the management to examine, evaluate, and monitor the adequacy and effectiveness of internal control. An internal auditor may belong to an internal audit department or perform an equivalent function.
SA 610 states the guidelines for "Using the Work of Internal Auditor. As per the guidelines the statutory auditor can rely on the work of the internal auditor after assessing the task of internal control for the purpose of placing reliance upon the work.
The statutory auditor should consider the following aspects of internal audit work:
1. Judge the organizational status of the internal auditor
2. Scope of function of the internal auditor
3. Technical competence as a professional to act as an internal auditor
4. Due professional care expected from the internal auditor
The obiective of a statutory auditor and internal auditor are almost similar with the difference to submit a within the time frame. As the task of the statutory auditor is a time-bound game, comprehensive audit report he/she has to relay the task of the internal auditor provided it is really reliable. If anything is wrong within the internal audit report and which has been overlooked by the statutory auditor, the entire responsibility goes to the statutory auditor, not the internal auditor. Companies Act, 2013 or Standards on Auditing does not give any scope in this regard.
5) Prepare an Internal Control Questionnaire (ICQ) In Respect Of purchase of goods in a Manufacturing Concern. (10)
Ans: Internal Control Questionnaire in Respect Of purchase of goods:
Objectives:
(a) To ensure purchases are made as per requisition.
(b) To ensure purchases are made by taking concurrence from the finance department.
(c) To ensure purchases are made in accordance with an authorized order.
(d) To ensure that all purchases are recorded properly.
Internal control:
(a) Requisition must come from the respective departments.
(b) Purchase officer receives concurrence from finance department.
(c) Meeting of the Purchase Committee is called.
(d) Sealed quotations are invited.
(e) Tender Committee shortlists the quotation on the basis of least price, quality, and credential of the vendor.
(f) Finance Committee approves an appropriate tender on the basis of the recommendation of the Tender Committee and instructs the purchase committee to go ahead.
(g) Purchase order has to be placed in accordance with the recommendation of the finance committee.
(h) Goods or services are provided by the selected vendor.
(j) Goods or services are received in good condition.
(i) Proper accounting records have to be made and placed in the store keeper's room.
6) Define Internal audit. Distinguish it with internal control . Is internal audit mandatory as per provision of the companies act 2013? Discuss. (2+4+4)
Ans: Internal audit:
In the words of W.B. Meigs, 'Internal auditing consists of a continuous, critical review of financial and oper-ating activities by a staff of auditors, functioning as full-time salaried employees.
SA 610 stated that, 'Internal audit is a separate part of internal control system. The objective of internal audit is to determine whether other internal control systems are well designed and properly operated.
Distinguish between Internal audit and Internal control :
 |
| Click on the image to zoom (Source : OUP) |
Provision of the companies act 2013:
As per Section 138 read with Rule 13 of the Companies (Accounts) Rules,2014,it is mandatory for the following class of companies to appointinternal auditors or a firm of internal auditors:
(a) Every listed company;
(b) Every unlisted company having paid up a capital Rs 50 crore or more or turnover of Rs 200 crore more or outstanding loan banks or Public Financial Institutions Rs 100 crore or more or outstanding deposits of Rs 25 crore or;
(c) Every private company having turnover of Rs 200 crore or more or outstanding loan or borrowing from banks or financial institutions of Rs 100 crore or more.
Hope you have found this audit bcom 3rd year cu previous year question papers helpful. This important cu bcom sem 5 audit questions abd answers are helpful for both bcom honours and general students. Download CU solved 5th sem previous year question papers on audit for further studies.
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