Goa Board Class 12 Sample Paper 2023 Principles & Practice of Auditing

Sample Paper
&
Question Paper Pattern
2022
2023

GOA BOARD

Principles and Practice of Auditing 2022-23
Syllabus to be followed for the Academic Year 2022-23
Theory

Scope and limitations:-
Unit I:- Marks:- 12

Vouching of Cash Transactions:-

i) Vouching of cash transactions:-
Meaning – Definition of Vouchers, points to be noted while examining vouchers –
internal check as regards to cash – meaning of vouching.
ii) Vouching of Debit side of cash book:-
Opening balances, cash sales, receipt from debtors, Teeming and Lading method of
Fraud – How to detect Teeming and Lading method frauds – Income from interest,
dividend, loans, rent received, bills receivable, commission, sale of investments, sale of
fixed assets.
iii) Vouching of credit side of cash book:-
Payments to creditors, wages – chances of frauds and errors in wages – auditor’s duties
as regards to wages – loans, salaries, agent’s and traveller’s commission, travelling
allowance, insurance premium, bills payable, postage, petty cash, bank account,
partners drawings, bank charges, advertising expenses – capital expenditure – freehold /
leasehold property and building, plant and machinery, patents, investment.

Unit II:- Marks:- 04

Vouching of Trading Transactions:-

Internal check as regards to purchases, duty of an auditor in connection with credit purchases,
internal check as regards to sales, duty of an auditor with regards to credit sales.

Unit III:- Marks:-12

Verification and valuation of Assets and liabilities: -

i) Verification and valuation of Assets and Liabilities:-
Meaning – problems in valuation of Assets – Fixed Assets – mode of valuation of fixed

assets, floating or current assets and the mode of their valuation – wasting assets –

intangible assets – valuation of intangible assets –auditors position as regards to
valuation of assets.

ii) Verification and valuation of Assets and liabilities:-
Cash in hand, cash at bank, loans – loans against security of land and property, loans
against security of stock and shares, loans against security of goods, Investment – stock
in hand – duty of an auditor in connection with stock in hand – valuation of fixed assets
– book debts – patents – copy rights – furniture and fixture – plant and machinery –
loose tools

iii) Verification of liabilities:-
Trade creditors – outstanding expenses – contingent liability.

Unit IV:- Marks:- 08

Audit report and audit certificate:-

Meaning, basic elements of an audit report, essentials/characteristics of audit report – types of audit
report – qualified, unqualified, adverse, disclaimer. Meaning of audit certificate – distinction
between audit report and audit certificate.

Unit V:- Marks:- 04

Auditing in an EDP Environment:-

Meaning of EDP (Electronic data processing), advantages of EDP system in auditing, problems in an
EDP Environment, auditing in an EDP Environment.

CHART SHOWING SYLLABUS TO BE COVERED FOR FIRST TERM AND SECOND TERM

FIRST TERM
UNIT I Vouching of Cash Transactions 12 Marks

(Sub unit I, ii & iii )

UNIT II Vouching of Trading Transactions 04 Marks 20 Marks

UNIT III Verification and valuation of Assets 04 Marks

and liabilities (Only sub unit i )

SECOND TERM
UNIT III Verification and valuation of Assets 08 Marks
and liabilities (sub unit ii & iii )

UNIT IV Audit report and audit certificate 08 Marks
20 Marks
UNIT V Auditing in an EDP Environment 04 Marks

SCHEME OF EXAMINATION FOR THEORY PAPER (2022-23)

I TERM BOARD EXAM (All 20 MCQ Questions)…….……………...………… 20Marks

II TERM BOARD EXAM (Subjective Paper) - No MCQ Questions to be asked...20Marks

INTERNAL TEST MARKS (Average) ………...…..……………………………. 10Marks

(1st Internal test + 2nd Internal Test + Innovative Test/6 = 20+20+20/6)

TOTAL ………………………………..………………………………………… 50Marks

Principles and Practice of Auditing 2022-23
Continuous and Comprehensive Evaluation - First Term Practical’s

Unit No:- I

Auditing of Books of Accounts of Trading Concerns:-

June

1. To detect the audit queries (vouching) by providing accounting vouchers with
documentary evidences and recording them in the prescribed format (minimum five
queries – 1 mark each) Marks:- 5

July

2. To detect the audit queries (vouching) from subsidiary books i.e. Double Column
Cash Book, Purchase Book, Sales Book, Purchase Return Book & sales Return book,
Journal proper by referring to Accounting vouchers and recording them in prescribed
format (minimum five queries – 1 mark each) Marks:- 5

August

3. To detect the audit queries (posting) from respective ledger accounts by referring
subsidiary books and recording them in the prescribed format
(minimum 10 queries – 1 mark each) Marks:- 10

Unit No:- II

September

Auditing of Books of Accounts of Trading Concerns:-

To detect the audit queries (vouching & posting) from subsidiary books i.e. Double Column
Cash book, Purchase Book, Sales Book, Purchase Return Book and Sales Return Book,
Journal Proper and respective ledger accounts and recording them in the prescribed format.
(minimum 10 queries – 2 marks for each query) Marks:- 20

Viva on the above Practicals Marks:- 05

File Marks:- 05

Total Marks:- 50

Second Term Practical’s

Unit No:- III

November

Auditing of Books of Accounts of Non-Trading Concerns:-

To detect the audit queries (vouching and posting) by providing accounting vouchers with
documentary evidences, Double Column Cash Book, Journal Proper and respective ledger
accounts. (minimum 10 queries – 2 marks for each query) Marks:- 20

Unit No:- IV

December - January

Collection of various Audit Reports, Drafting of various types of Audit Reports:-

1. The students are required to gather various Audit reports of Companies, Co-

operative societies, Banks etc and make analysis of the same as per the ‘Basic

Elements of an Audit Report’ and keep it in the files. (Minimum 2 reports needs to be
collected and analysed) 4 marks each. Marks:- 08
2. Based on the audit reports collected, the students must be made to draft minimum
two Audit reports of imaginary organisations/ companies by following the basic
elements of an Audit Report and the same must be maintained in the file. (6 marks
each) Marks:- 12

Viva on the above Practicals Marks:- 05
File Marks:- 05
Total:- 50

MODEL QUESTION PAPER FOR FIRST TERM EXAM 2022-23

STD. XII A&A

PRINCIPLES AND PRACTICE OF AUDITING

SUBJECT CODE: 4222

DURATION: 1 Hour MAX. MARKS: 20

INSTRUCTION:

i. All questions are compulsory.
ii. There are 20 MCQ questions in the paper
iii. Figures to the right indicate marks allotted to each question
iv. Write the number of each question clearly on the answer book

01. Re. 1 Revenue stamp should be affixed for all payment vouchers for an 01
amount equal to and more than Rs. ________.
A. ₹1,000/-
B. ₹5,000/-
C. ₹10,000/-
D. ₹15,000/-

02. Cash Memo is the documentary evidence referred by the Auditor to vouch 01
_______.

A. Credit Sales
B. Payment to creditors
C. Cash Sales

D. Receipt from debtors

03. A receipt is an example of ___________. 01

A. Voucher
B. Vouching
C. Verification
D. Valuation

04. In order to avoid misuse of funds of the firm, all payments except petty 01
cash payments should be made by _____________

A. Cash
B. Crossed cheque
C. Bearer cheque
D. Blank cheque

05. Freight paid on machinery purchased is a ___________ 01

A. Capital expenditure
B. Revenue expenditure
C. Capital loss
D. Revenue loss

06. Concealment of shortage by delaying the recording of cash receipts is 01
known as ______________.
A. Embezzlement
B. Misappropriation
C. Lapping
D. Error

07. Bank charges such as commission, interest on overdraft and loan etc 01
should be examined by referring the _______________.

A. Cheque book
B. Withdrawal slips
C. Bank pass book
D. Deposit slips

08. Profit from the sale of Fixed Asset should be credited to _____________. 01

A. Capital a/c

B. Fixed asset a/c
C. Capital reserve a/c
D. Profit and Loss a/c

09. The method wherein fraud is conducted by including the name of a 01
dummy worker in the Wage sheet is known as ______________.

A. Teeming and Lading
B. Tapping
C. Padding
D. Concealing

10. The documentary evidence that needs to be examined in order to vouch 01
Rent receivable is ________________.

A. Partnership Deed
B. Sale Deed
C. Mortgage Deed
D. Lease Deed

11. As a part of the Internal check system, as soon as cash is received, it 01
should be acknowledged by means of a ________________.

A. Inward Invoice
B. Payment Voucher
C. Printed Receipt
D. Cover note

12. The documentary evidence to be vouched for income received on account 01
of shares is ___________.

A. Cheque book
B. Bank pass book
C. Dividend warrant
D. Share certificate

13. All the orders sent out by an organization should be recorded in ______. 01

A. Sales order book
B. Purchase order book
C. Purchase return book
D. Sales return book

14. As part of the internal check system, on arrival of the goods, the 01
gatekeeper or the stock keeper should make a record in the ____________

A. Cash book
B. Goods inward book
C. Goods outward book
D. Sales book

15. Which of the following statement is true with respect to internal check of 01
credit purchases

A. Every person who has to deal with the invoice and goods should
put their initial on the invoice
B. No one should put their initials in the invoice
C. Only the Purchase manager who deals with the invoice must put
his initial on the invoice
D. Only the Store keeper must put his initial on the invoice

16. The auditor while vouching credit purchases of goods must see that the 01
orders are placed by ______

A. Gatekeeper
B. Cashier
C. Responsible officer
D. Store keeper

17. Copyrights, Patents and Trademarks are examples of ______________ 01
A. Current Assets
B. Tangible Assets
C. Intangible Assets
D. Wasting Assets

18. Floating Assets are valued at________________ 01
A. Cost price
B. Market price
C. Cost price or market price whichever is less
D. Cost price less depreciation

19. Which of the following does not require physical verification? 01

A. Stock
B. Plant
C. Goodwill

D. Loose tools

20. In the balance sheet contingent liability is shown _________ 01

A. On the Asset side
B. On the Liability side
C. In form of footnote
D. None of the above

Model Question Paper
SECOND TERM QUESTION PAPER 2022-23
PRINCIPLES AND PRACTICE OF AUDITING V - 4222
STD. XII
DURATION: 1 HOUR MAX MARKS: 20

Instructions:
1. There are three sections in this question paper (A, B & C)
2. In section A there are four questions of which question no. 1 & 2 are to be answered
in a word, phrase or figure and question no. 3 & 4 are to be answered in one sentence
each
3. Figures to the right indicate marks allotted to each question
4. Write the number of each question clearly on the answer book
5. Answer all questions from Section A and Section B
6. Answer any two questions from section C

SECTION A

01. Name the type of report in which the auditor gives an opinion subject to certain
reservations. (01)
02. Write the full form of EDP. (01)
03. List any two basic elements of an audit report. (01)
04. Mention any one problem faced by an auditor in an EDP system. (01)

SECTION B
05. Mention any two points to be adopted by an auditor while verifying ‘Trade creditors’.
(02)
06. Write four qualities of a good audit report. (02)
07. Discuss in brief Adverse audit report. (02)
08. Distinguish between audit report and audit certificate. (Any 2 points) (02)
09. Explain any two advantages of Auditing under EDP system. (02)

SECTION C (Answer any two)
10. Mention any three points for verification of cash in hand. (03)
11. Write any three points for verification of Loan Advanced against security

of goods. (03)
12. As an auditor, how will you verify ‘Book Debts’? Write three points. (03)