AUDITING

Important Questions
2 marks
UNIT 1
1. Define auditing
2. What do you mean by final audit
3. State the meaning of stationery audit
4. What is internal audit
5. Define the term audit
6. Why is auditing an important one
7. What are the objects of an audit
8. What is meant by statutory audit
9. State any two limitations of audit
UNIT 2
1.
2.
3.
4.
5.
6.

What is internal check

What do you mean by internal audit
What is audit programme
What is internal control
What is the scope of internal control
Write short note on ICQ

UNIT 3
1. What is voucher
2. What is cash transaction
3. What is test checking
4. State the needs of vouching
5. Distinguish between current asset and fixed asset
6. State the types of vouchers
7. What is the main aim of vouching of trading transaction
8. What is meant by verification of assets
9. What is vouching
10. What are wasting assets
11. What are the primary vouchers
12. Specify the object of verification of assets

UNIT 4
1. Who is an auditor
2. State the status of a company auditor
3. Write any one reason for reappointment of auditor

4. How is an auditor appointed

5. Who is a branch auditor
6. When an auditor has been appointed at the annual general meeting
7. State the civil liabilities of an auditor
8. Who are first auditors
9. Who fixes the remuneration of an auditor
10. Mention the disqualification of accompany auditors
UNIT 5
1. Charitable institution
2. What is club
3. What is specialized audit
4. What is trust
5. State the importance of auditing in cinema theatre
6. Why auditing is needed for hospitals
7. What a point should an auditor keep in mind while verifying an expenditure of hotels
8. What are the sources income of charitable institutions?
9. What are working papers
10. What is meant by subscription
11. What is legacy.
12. Point out the sources of incomes for hospital
5 Marks
UNIT 1
1. What are the objectives of auditing
2. Distinguish between auditing and accountancy
3. Describe the functions of auditing
4. Briefly explain the types of audit programme
5. Explain the objectives of auditor
6. What are the advantages of an audit
7. Explain the objectives of audit
8. What are the limitations of an audit
9. What are the difference between auditing and investigation
10. Write note on internal audit
11. What are the limitations of auditing
12. Examine the importance of audit working papers
UNIT-2
1.
2.
3.
4.
5.
6.
7.

State the objectives of internal control

State the merits of internal check
What is the scope of internal control
Describe the disadvantages of internal check
What are the objectives of internal check
What are the objectives of internal audit
What are the features of an internal control

8. What are the features of internal check system

9. Explain the system of internal check regarding purchases
10. Explain the objectives of internal control
11. List down the benefits of internal check
UNIT 3
1. State the importance of vouching
2. State the procedures related with remuneration of auditors
3. Mention the objectives of vouching
4. Distinguish between verification and vouching
5. Explain differences between checking and vouching
6. What are contingent liabilities? Give any three examples
7. What are the important features of voucher
8. What are the objects on verification of assets
9. Define vouching. why is it needed?
10. How do you verify liabilities
UNIT-4
1. State the objectives of vouching
2. Discuss the provisions of companies act regarding removal of auditors
3. Describe the provisions of companies act regarding remuneration of auditors
4. What are the duties of an auditor
5. State the disqualifications of an auditor
6. State the qualification of an auditor
7. What are the powers of an auditor? Explain any four
8. Explain the rights of an auditor
9. Bring out some instances of criminal liability on the part of company auditor
10. Who can be appointed as an auditor
11. State the procedure for removal of an auditor after the expiry of his term
12. List out the rights of the company auditor
13. How is now auditor appointed in the place of retiring auditor
UNIT-5
1. Examine the merits of specialized audit
2. What are the objectives of specialized audit
3. How should income of hospitals be verified by an auditor
4. What point should auditor keep in mind while verifying an expenditure of clubs.
5. Briefly explain the procedure as to audit of fees received by an educational institution
6. Mention the special matters which you would verify in the course of audit on a hotel
7. Explain the procedure as to audit of hospital
8. Explain the procedure for auditing the accounts club
9. Discuss the audit of cinema theatre
10. Explain the role of an auditor for audit of club

10 Marks
UNIT 1
1. Explain the different types of audit?
2. Distinguish between accountancy and auditing?
UNIT 2
1.
2.
3.
4.
5.
6.
7.

Discuss the procedure for internal control regarding cash purchases and sales?
Explain the element of a goods system of internal control
Discuss advantages and disadvantages of an internal check
Describe the various steps in the evaluation of internal control system
Explain the duties of an auditor as regards internal check system?
Explain the main functions of an internal audit
Explain a suitable internal check system for purchases and sales

UNIT 3
1.
2.
3.
4.
5.
6.

Analyses the steps involved in vouching of cash transactions

What are the points to be born in mind while examining the vouchers
What points should the auditor pay attention while vouching purchase invoices
Explain the verification and valuation of different kinds of assets
What are the points to be considered by an auditor while vouching payment of wages
How would you vouch the receipt side of your clients cash book?

UNIT 4
1.
2.
3.
4.

Examine the duties of an auditor

What are the rights of a company auditor
What are the duties and power of an auditor
What are the provisions in the companies act for the appointment of an auditor of a
company
5. Discuss the liabilities of an auditor under company act
UNIT 5
1. Analyze the procedures involved in auditing of educational institutions
2. What points should an auditor keep involved while auditing the schools, college and
universities.
3. Mention special matters which you would verify in the course of an audit of hotel?

4. Mention eight special matters which you would verify in the course of audit of a
hospital?
5. Mention any eight matters which you would verify in the course of audit of a club