ANU UG/Degree 4th Sem(Y23) Auditing Unit Wise Important Questions

ANU UG/Degree 4th Sem(Y23) Database Management System with Oracle Unit Wise Important Questions are now available, these questions are very important for your semester exams. These questions are prepared by top qualified faculty. Read these questions for good marks.

 

Unit 1: Introduction: Meaning – Objectives – Importance of Auditing – Characteristics - Book Keeping vs Auditing - Accounting vs Auditing – Role of Auditor in Checking Corporate Frauds.

Short Answer Questions

1. Define auditing and explain its primary objectives.
2. What is the importance of auditing in ensuring transparency and accountability in organizations?
3. List and describe two key characteristics of auditing.
4. Differentiate between book keeping and auditing.
5. Compare accounting and auditing in terms of their scope, purpose, and methodology.
6. Describe the role of an auditor in detecting and preventing corporate fraud.

Long Answer Questions

1. Discuss the meaning and objectives of auditing, and explain its importance in the context of modern business practices.
2. Analyze the key characteristics of auditing and how they contribute to ensuring accuracy and reliability in financial reporting.
3. Compare and contrast book keeping with auditing, highlighting the distinct roles and processes involved in each.
4. Examine the differences between accounting and auditing, and discuss how each function supports overall financial management.
5. Evaluate the significance of auditing in enhancing corporate governance and ensuring stakeholder confidence.
6. Critically assess the role of auditors in checking corporate frauds, including the challenges they face and the strategies they employ to detect fraudulent activities.

 Unit 2: Types of Audit: Based on Ownership, Time and Objective - Independent, Financial, Internal, Cost, Tax, Government, Secretarial Audits

Short Answer Questions

1. Define an independent audit and explain its main objective.
2. What is a financial audit, and how does it differ from a cost audit?
3. Describe the primary purpose of an internal audit.
4. What is a tax audit, and which aspect of an organization does it primarily focus on?
5. Outline the key features of a government audit.
6. What is a secretarial audit and how is it distinct from other audit types?

Long Answer Questions

1. Discuss the various types of audits based on ownership, time, and objectives, highlighting the unique characteristics of independent, financial, and internal audits.
2. Compare and contrast financial audits and cost audits, explaining their scopes, methodologies, and roles in ensuring organizational accountability.
3. Explain the significance of internal audits within an organization. Include a discussion on how they contribute to operational efficiency and risk management.
4. Analyze the purpose and process of tax audits, detailing how they ensure compliance with tax regulations and their impact on financial reporting.
5. Examine the role of government audits in the public sector, discussing their objectives, challenges, and the importance of accountability in governmental operations.
6. Evaluate the concept of secretarial audits, including their regulatory framework and their contribution to good corporate governance and transparency.

 Unit 3: Planning of Audit: Steps to be taken at the Commencement of a New Audit – Audit Programme - Audit Note Book– Audit Working Papers - Audit Evidence - Internal Check, Internal Audit and Internal Control.

Short Answer Questions

1. What are the key steps to be taken at the commencement of a new audit during the planning phase?
2. Define an audit programme and briefly describe its main components.
3. What is an Audit Note Book, and what role does it play in the audit process?
4. Explain the purpose of audit working papers and why they are essential for auditors.
5. Define audit evidence and mention two types of evidence commonly gathered during an audit.
6. Differentiate between internal check, internal audit, and internal control.

Long Answer Questions

1. Discuss in detail the steps involved at the commencement of a new audit. Explain why careful planning is crucial for the overall success of the audit process.
2. Elaborate on the concept of an audit programme. What are its key components, and how does it guide auditors in conducting a systematic and thorough audit?
3. Explain the roles and differences between an Audit Note Book and audit working papers. How do these documents contribute to effective audit documentation and evidence collection?
4. Define audit evidence and discuss the various types of evidence that auditors collect. How do auditors evaluate the reliability and sufficiency of this evidence during the audit process?
5. Examine the roles of internal check, internal audit, and internal control within an organization. How do these mechanisms support the audit process and contribute to maintaining organizational integrity?
6. Analyze how the planning tools—such as the audit programme, note book, and working papers—integrate with overall audit execution and follow-up. Discuss the challenges auditors might face in ensuring effective internal controls and documentation.

 Unit 4: Vouching and Investigation: Definition and Importance of Vouching – Objectives of Vouching -Vouching of Cash and Trading Transactions – Investigation - Auditing vs. Investigation

Short Answer Questions

1. Define vouching and explain its importance in the auditing process.
2. What are the primary objectives of vouching in an audit?
3. How is vouching for cash transactions performed, and why is it critical?
4. Describe the process and significance of vouching for trading transactions.
5. Define investigation in the context of auditing and outline its purpose.
6. Differentiate between auditing and investigation in terms of scope and approach.

Long Answer Questions

1. Discuss in detail the definition and importance of vouching in auditing, highlighting how it contributes to the verification of financial records.
2. Analyze the objectives of vouching and explain how these objectives help ensure the accuracy and reliability of an organization's financial statements.
3. Describe the procedures involved in vouching for cash transactions, including key steps and potential challenges an auditor may encounter.
4. Elaborate on the vouching process for trading transactions and discuss its role in validating the authenticity of sales and purchase records.
5. Explain the concept of investigation within auditing, outlining its methodologies, scope, and the circumstances under which an investigation is initiated.
6. Compare and contrast auditing and investigation by discussing their respective purposes, processes, and how they complement each other in maintaining financial integrity.

 Unit 5: Company Audit and Auditors Report: Auditor's Qualifications – Appointment and Reappointment – Rights, Duties, Liabilities and Disqualifications - Audit Report: Contents –Preparation - Relevant Provisions of Companies Act, 2013.

Short Answer Questions

1. What are the key qualifications required for an auditor under the Companies Act, 2013?
2. Outline the process of appointment and reappointment of auditors in a company.
3. What rights are granted to auditors during the audit process as per regulatory provisions?
4. List two primary duties of an auditor that ensure effective audit execution.
5. What are some common liabilities and disqualifications applicable to auditors under the Companies Act, 2013?
6. Identify the essential contents that must be included in an audit report according to the Companies Act, 2013.

Long Answer Questions

1. Explain in detail the qualifications required for an auditor as per the Companies Act, 2013. Discuss how these qualifications enhance the reliability and credibility of the audit process.
2. Describe the entire process of appointment and reappointment of auditors in a company. Include the statutory provisions, criteria for independence, and how these procedures safeguard against conflicts of interest.
3. Discuss the rights and duties of auditors in the context of a company audit. Explain how these rights and responsibilities contribute to transparent and effective auditing while protecting stakeholders' interests.
4. Evaluate the liabilities and disqualifications imposed on auditors under the Companies Act, 2013. Provide examples and discuss the rationale behind these measures in promoting audit quality and corporate accountability.
5. Outline the key components that should be included in an audit report as mandated by the Companies Act, 2013. Describe the preparation process of an audit report and how it ensures comprehensive disclosure of audit findings.
6. Analyze the impact of the Companies Act, 2013 on the role and responsibilities of auditors. Discuss how the Act has influenced audit practices, auditor independence, and overall corporate governance.