Académique Documents
Professionnel Documents
Culture Documents
Section-I
Marks-50
Marks
1. Write short notes on the following : 10
(a) Audit program
(b) Audit engagement letter
(c) Prospectus
(d) Operating leases
(e) Fraud & Error
2. (a) What are the responsibilities of an auditor, if there has been a limitation of scope of the audit? 3
(b) Draft an audit report for a private limited company, containing at least two findings on
limitation of scope of the audit. 5
3. The fair presentation of financial statements is the responsibility of the management. Describe the
assertion of management with regard to fair presentation of financial statements. 7
4. (a) What are the provisions regarding appointment of the auditors under the Companies Act, 1994? 4
(b) A firm has been invited to accept appointment as auditor of a company following resignation
of the previous auditor. Give at least three reasons why the firm might decline the invitation. 6
5. State verification procedure of the items appearing in the financial statements of the Company, as
noted below: 15
Borrowing from banks by financial institutions
Capital work in progress
Accounts receivable
Trade creditors
Investment in Subsidiary Company
Section-II
Marks-50
- The End -