Goa Board Class 12 Question Paper Mar 2019 Principles and Practice of Auditing

2019 III 14 1000 Seat No.

Time : 2 Hours PRINCIPLES & PRACTICE OF AUDITING
Subject Code

V 2 2 2
Total No. of Questions : 5 (Printed Pages : 5) 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

The procedure of establishing the accuracy and authenticity of an

entry recorded in the books of account by examining the

documentary evidence is termed as .............................. .

• Vouching

• Surveying

• Valuing

• Verifying

(B) Answer the following in a word, phrase or figure : 1

Which documentary evidence must the auditor rely upon, for

confirming the opening balances ?

(C) Mention any three points involved in the vouching procedure for

amount paid towards ‘Insurance Premium’. 3

(D) Explain the procedure that needs to be followed while vouching the

amount received towards ‘Rent’. Write five points. 5

OR

Explain the procedure for vouching the receipts from ‘Sale of

Investment’. Write five points.

2. (A) Complete the following statement by choosing the correct option

given below : 1

The auditor while vouching the expenses incurred towards ‘Extra

Ordinary Travelling Allowance’ must insist upon the sanction

from ................................ .

• Registrar of Companies

• Shareholders

• Board of Directors

• Companies Trade Unions

(B) Answer the following in a word, phrase or figure : 1

Which documentary evidence needs to be verified by an auditor in

order to understand the Drawing limits of a partner ?

(C) Explain any three steps that need to be incorporated for an efficient

internal check system with respect to ‘Credit sales’. 3

(D) As an auditor, mention any five steps that you will follow to vouch

the expenses incurred towards ‘Wages’. 5

OR

As an auditor, how will you vouch the expenditure incurred on

purchase of ‘Plant and Machinery’ ? Write five points.

3. (A) Complete the following statement by choosing the correct option

given below : 1

An intangible asset includes ................................ .

• Goodwill and Bank

• Patents and Cash

• Goodwill and Trademark

• Copyrights and Machinery

(B) Answer the following in one sentence : 1

What principle should be followed in valuation of closing

stock when market as well as cost price of the stock is

given ?

(C) Mention any three duties that an auditor has to follow while

vouching ‘Credit Purchases’. 3

(D) As an auditor, what procedure will you undertake for the

verification of ‘Cash in hand’. Write five points. 5

4. (A) Answer the following in one sentence : 1

What is verification of asset ?

(B) Explain in brief the concept of ‘Fixed assets’. 2

(C) As an auditor, how will you verify ‘Book Debts’ ? Write two

points. 2

(D) Explain any two points to be followed by an auditor while verifying

and valuing ‘Loose Tools, Patterns and Dyes’. 2

(E) Explain any three points to be adopted in the verification of ‘Trade

Creditors’. 3

5. (A) Answer the following in a word, phrase or figure : 1

What type of Audit report does an Auditor present in the case,

where he fully accepts all the figures of financial statement without

any adverse remarks or reservation ?

(B) Explain in brief any two elements of Audit Report. 2

(C) Explain in brief the concept of ‘Electronic Data Processing’. 2

(D) Explain two advantages of auditing under ‘Electronic Data

Processing’ system. 2

(E) Distinguish between Audit report and Audit certificate. Write three

points. 3