Auditing Solved Question Paper 2023 [Dibrugarh University B.Com 6th Sem CBCS]

Hello, Dear readers. Today we are  going to share with you the Dibrugarh University B.Com 6th Sem Auditing Solved Question Paper 2023 . This paper was held in  2023 and we (TEAM PROEFUNOTES) have solved it with the help of the prescribed textbook and some online resources. We hope this will help you to prepare for your upcoming exams and score good marks.

Auditing is a very important subject for BCOM students as it deals with the examination and verification of financial statements and records of an organization. It helps to ensure the accuracy, reliability and fairness of the accounting information and to prevent frauds and errors. Auditing also helps to improve the efficiency and effectiveness of the internal control system and to provide assurance to the stakeholders.

Auditing Solved Question Paper 2023 [Dibrugarh University B.Com 6th Sem CBCS]

[Dibrugarh University BCOM 6th Semester]

Auditing Solved Question Paper 2023


Paper: C-603


Full Marks: 80

Pass Marks: 32

Time: 3 hours

The figures in the margin indicate full marks for the questions

1. (a) State whether the following statements are True or False1 x 4 = 4

(1) Auditing starts where accounting ends.

ANS:-  True 

(2) Patents must be valued at cost less depreciation.

ANS:- False 

(3) An auditor is not liable to third parties.

ANS:-  False

(4) U/S 129(2), the auditor’s report is attached to every financial statement.

ANS:- True

(b) Fill in the blanks with appropriate word(s):            1 x 4 = 4

(1) When an audit is conducted without any legal necessity, the audit is called Non-Statutory Audit

(2) When written evidence is available in original, it is known as Primary voucher.

(3) Share Premium Account may be used for issuing bonus shares or writing off preliminary expenses.

(4) Audit report with reservation is known as Qualified Audit Report.

Explanations:- An audit report with reservations is known as a "Qualified Audit Report." This type of audit report is issued by an auditor when they have identified one or more issues with a company's financial statements that they believe are material, but do not rise to the level of a full disclaimer or adverse opinion.

2. Write short notes on any four of the following:     4 x 4 = 16

(a) Errors of omission.

Ans:- Errors of omission are essentially failures to take required actions, complete tasks, or provide necessary information. These omissions occur when someone neglects to do something that they should have done. They can happen due to oversight, forgetfulness, or lack of knowledge. In various fields:

1. Financial Accounting: Omission errors might occur in financial reports when a company fails to record a transaction or an important piece of information, leading to inaccurate financial statements.

2. Medicine and Healthcare: Medical errors of omission involve failing to administer proper treatment, prescribe necessary medication, or provide essential information to patients, impacting their care and well-being.

3. Legal Context: Errors of omission in legal documents or contracts can result in incomplete agreements, missing clauses, or overlooked terms that could lead to disputes or legal complications.

4. Project Management: Failing to include essential tasks, steps, or milestones in a project plan represents errors of omission, potentially causing delays or inefficiencies in completing the project.

Addressing errors of omission often involves thorough review, adherence to checklists or procedures, and fostering a culture of attention to detail to prevent these oversights and ensure completeness in various processes and endeavors.

(b) Verification of contingent liabilities.

(c) Audit of forfeiture of shares.

(d) Government audit.

(e) Importance of audit report.

3. (a) What do you mean by auditing? Discuss the basic principles while conducting an audit.   4+10=14

Ans:- Download PDF for Complete Solution !


(b) What is ‘Continuous Audit’? Discuss the limitations of Continuous Audit. Distinguish between Continuous Audit and Periodical Audit.        4+5+5=14

4. (a) Discuss the duties of an auditor in connection with the vouching of credit purchases and purchase returns.        14


(b) Define vouching. What are the objectives of vouching? Distinguish clearly between the terms ‘Vouching’, ‘Verification’ and ‘Valuation’.    3+4+7=14

Ans:- Download PDF for Complete Solution !

5. (a) How will you examine the following items while auditing the accounts of a limited company?  5+5+4=14

(1) Issue of Bonus Share.

(2) Redemption of Preference Share.

(3) Forfeiture of Share.

Ans:- Download PDF for Complete Solution !


(b) (i) Explain the provisions of depreciation applicable to companies’ u/s 123(2) of Companies Act, 2013.   7

Ans:-  The following are the explanation of the provisions of depreciation applicable to companies under Section 123(2) of the Companies Act, 2013:

Key Provisions:

1. Mandatory Depreciation: Companies are required to provide for depreciation on tangible assets, as per Section 123(2) of the Act. This means depreciation must be charged against profits before any dividend can be declared.

2. Schedule II: The basis for calculating depreciation is governed by Schedule II of the Act, which outlines:

   - Useful Life: Specifies the expected useful life (in years) for various classes of assets (e.g., buildings, machinery, furniture).

   - Residual Value:  Sets a maximum residual value of 5% of the original cost of the asset.

3. Depreciation Methods: Companies have flexibility in choosing the depreciation method:

   - Straight Line Method (SLM): Allocates a uniform amount of depreciation over the useful life.

   - Written Down Value Method (WDV): Depreciation is calculated on the diminishing value of the asset each year.

4. Shift Working: Additional depreciation is allowed for assets used in multiple shifts:

   - Double shifts: 50% increase in depreciation for that period.

   - Triple shifts: 100% increase in depreciation for that period.

5. Exceptions to Schedule II: Companies can adopt a useful life or residual value different from Schedule II, provided they justify the reasons for such deviation.

6. Intangible Assets: Depreciation for intangible assets is not specifically addressed in Section 123(2) and Schedule II. It's generally governed by the applicable accounting standards.

7.Managerial Remuneration: Depreciation computed as per Section 123(2) is a mandatory deduction for determining the limits of managerial remuneration.

8. Non-Compliance: Failure to comply with depreciation provisions can result in penalties and potential litigation.

Additional Points:

- Depreciation is a non-cash expense that reflects the gradual wear and tear of assets over time.

- It helps companies accurately reflect the value of their assets in their financial statements.

- Companies should maintain proper records of assets and depreciation calculations to ensure compliance.

(ii) Discuss the duties of an auditor as regards provision for depreciation.    7

Ans:-  An auditor is not a valuer to determine the value of assets held by the company. He has to depend on the suggestions and advice given by professional experts in determining the value and estimated life of the asset. However, the following are the duties of an auditor in this regard.

the duties of an auditor as regards provision for depreciation.

1. Verify Depreciation Rates: The auditor should ensure that depreciation has been provided as per the rates prescribed by the Companies Act.

2. Disclosure in Financial Statement: He should ascertain that adequate depreciation is charged and properly disclosed in the Profit and Loss Account and Balance Sheet.

3. Compliance with Accounting Principles: He should ensure that relevant accounting principles have been followed while providing for depreciation.

4. Depreciation  on  Purchase  or  Sale: When assets are purchased or sold during the  year,  auditor  should  ensure  that depreciation is charged on pro-rata basis taking into account the date of purchase or sale and the accounting period.

5. Certification from Experts: In case the depreciation charged is more than the rates prescribed, he should examine whether same are based on professional and technical advice.

6. Consistency: Where difference rates are used for different assets, the same should be consistently applied over the years.

7. Change in Method of Depreciation: In case of a change in the method of  accounting  for  depreciation  it  is recalculated from the date on which asset came into use and deficiency, if any, has been charged to Profit and Loss Account.

8. Adequacy  of  Capital  Employed: Auditor should check whether the capital employed in the assets is being kept intact.

9. Revaluation of Assets: In case of revaluation of asset during the year he should ensure that depreciation is charged on revalued amounts.

10. Procedure of Computation: He should ensure that the procedure for calculating depreciation complies with the provisions of Companies Act and Income tax Act.

6. (a) What is Audit Report? Explain briefly about the various types of Audit Report.    4+10=14

Ans:- Download PDF for Complete Solution !


(b) Discuss the elements and features of a good Audit Report.   7+7=14

Ans:- Download PDF for Complete Solution !


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Benefits of Dibrugarh University B.Com 6th sem Auditing Solved Question Paper 2023

1. Practice: It provides a chance to practice with real exam-like questions, aiding in preparation.

2. Understanding Pattern: Helps in understanding the exam pattern, question format, and distribution of marks.

3. Identifying Important Topics: Highlighting key areas of focus, helping students prioritize their study material.

4. Self-Assessment: Allows self-assessment by attempting the questions and comparing solutions, aiding in gauging preparedness.

5. Familiarity: Familiarizes students with the type of questions asked and the level of difficulty.

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