Goa Board Class 12 Question Paper Mar 2018 Principles and Practice of Auditing _New Pattern_

2018 III 17 1000 Seat No. :

Time : 2 Hours PRINCIPLES AND PRACTICE OF AUDITING
(New Pattern)

Subject Code

V 2 2 2

Total No. of Questions : 5 (Printed Pages : 3) Maximum Marks : 50
INSTRUCTIONS : i) Answer each question on a fresh page.
ii) Write the number of each question and sub-question
clearly.
iii) All questions are compulsory.
iv) Figures to the right indicate full marks.

1. A) Complete the following statement by choosing the correct option given
below : [1]
As part of the internal check system, as soon as cash is received, it should
be acknowledged by means of a __________
• Inward Invoice
• Payment Voucher
• Printed Receipt
• Cover Note.
B) Answer the following in a word, phrase or figure : [1]
Which type of fraud can be detected by an auditor after comparing the amount
collected on a particular date with the Pay in Slip ?
C) As an auditor, write the procedure for vouching ‘Payment to Creditors’.
(Three points) [3]
D) Explain the procedure that needs to be followed by an auditor, while vouching
the amount received from ‘Sale of Fixed Asset’. Write five points. [5]
OR
Explain the procedure to be followed by an auditor, for vouching the receipts
from ‘Bills Receivable’. Write five points.

V-222 (N-11) -1- P.T.O.

2. A) Complete the following statement by choosing the correct option given
below : [1]
Bank charges such as commission, interest on overdraft and loan etc.
should be examined by referring the __________
• Cheque book
• Withdrawal slips
• Bank pass book
• Deposit slips
B) Answer the following in a word, phrase or figure : [1]
In order to vouch which expenditure, an auditor has to examine Newspapers,
Magazine, TV and Radio commercials log book ?
C) Explain any three steps that need to be incorporated for an efficient internal
check system with respect to ‘Credit Purchases’. [3]
D) As an auditor, mention any five steps that you will follow to vouch the
expenses incurred towards ‘Salaries’. [5]
OR
As an auditor, how will you vouch the expenditure incurred on purchase of
‘Patents’ ? Write five points.

3. A) Complete the following statement by choosing the correct option given
below : [1]
For verification of loan advanced against security of goods, the auditor may
examine the _________
• Dock Warranties
• Sales report
• Pass book
• Sales Book
B) Answer the following in one sentence : [1]
What are Copyrights ?
C) Mention any three duties that an auditor has to follow while vouching [3]
‘Credit Sales’.
D) As an auditor, what steps will you undertake for the verification of loan
given against security of ‘Land and property’. Write five points. [5]

V-222 (N-21) -2-

4. A) Answer the following in one sentence : [1]
What is verification of asset ?
B) Explain in brief the concept of ‘Intangible assets’. [2]
C) Explain in brief the concept of ‘Contingent liabilities’. [2]
D) Explain any two points to be followed by an auditor while verifying and
valuing ‘Furniture and Fixture’. [2]
E) As an auditor what procedure needs to be followed for verification of ‘Book
debts’ ?(Write three points). [3]

5. A) Answer the following in one sentence : [1]
What is Electronic Data Processing ?
B) Explain in brief the following two elements of Audit Report : [2]
i) Addressee
ii) Opinion paragraph.
C) Explain in brief the concept of ‘Audit Report’. [2]
D) Write any four essentials of a good audit report. [2]
E) Explain three advantages of auditing under EDP system. [3]
________________

V-222 (N-21) -3- P.T.O.