Advanced Auditing, Assurance and Professional Ethics - May 2015 MTP

(a) While compiling the financial statements of a concern, you observed that the input information supplied by the concern is incomplete, incorrect and few of the Accounting Standards have not been followed. Describe, in brief, the procedure you will follow in the given situation. (b) CA. Zed has been appointed as an auditor of Attire Ltd., a textile entity. While going through the employee records of the company, CA. Zed identified that most of the labourers employed are of the…

(a) On recommendation of the Board of Directors, VJ Ltd., a listed company, appointed CA. Ramesh as the statutory auditor of the company at its Annual General Meeting held on 1st October, 2015 for a period of 10 years. A resolution to this effect was passed unanimously with no vote against the resolution. You are required to: (i) Examine the validity of the above resolution with respect to appointment of CA. Ramesh as the auditor for consecutive 10 years. (ii)…

(a) Hamma Ltd., on which the provisions of CARO, 2015 is applicable, defaulted in repayments of its dues to a Bank during the financial year 2014-15 and the same remained outstanding as at 31st March, 2015. However, the Company settled the total outstanding dues including interest o n 30th April, 2015 before completion of the audit. Discuss how you would deal with this matter and draft a suitable (5 Marks) Auditor's Report. (b) As a Statutory Auditor, how would you…

(a) While doing the audit of a nationalized bank, your Audit Assistant informed you that there are a lot of irregularities in Telegraphic Transfers and Demand Drafts. As an auditor, what guidance would be given to the Audit Assistant? (4 Marks) (b) You have been appointed as an auditor of a loan financing company, registered as an NBFC. You are required to state six special points to be kept in mind while auditing such company. (6 Marks) (c) BSL Pvt.…

(a) You have been appointed to investigate the accounts of a company and informed that the accounts have already been audited. Discuss whether you can put reliance on such already audited statement of accounts for the purpose of investigation. (5 Marks) (b) ABC, a manufacturing unit does not accept the recommendations for improvements made by the Operational Auditor. Suggest an alternative way to tackle the hostile management. (6 Marks) (c) Sugandh Pan Masala Pvt. Ltd. was incurring heavy losses in…

Comment on the following with reference to the Chartered Accountants Act, 1949 and schedules thereto: (a) Ms. Aabha, a Chartered Accountant in practice, entered into a partnership with Mr. Abhay, an advocate, for sharing of fees for work sent by one to the other. However, due to some disputes, the partnership was dissolved after 1 month without any fees having been received. (b) Mr. 'P' is a practicing Chartered Accountant working as a proprietor of M/s P & Co. He…

Write short notes on any four of the following: (a) Haphazard Sampling. (b) Objectives of Internal Check System. (c) Areas excluded from the scope of peer reviewer. (d) General Steps in the Conduct of Risk-Based Audit. (e) ‘Mandatory Review’ areas of the audit committee as per Clause 49 of the Listing Agreement. (4 × 4 = 16 Marks) Test Series : September, 2015 MOCK TEST PAPER – 1 FINAL COURSE: GROUP – I PAPER – 3: ADVANCED AUDITING AND PROFESSIONAL…

(a) Radar Ltd. appointed you as its statutory auditor for the current financial year. During the course of auditing, you meticulously analysed that the work performed by company’s internal auditor is likely to be adequate for the purpose of statutory audit. Consequently, you decided to use the work of internal auditor in respect of physical verification of tangible assets specifically. State how you would evaluate the specific work performed by internal auditor to determine its adequacy and who would be…