LIST OF IMPORTANT QUESTIONS (GUESS QUESTIONS) FOR NOV 2014 EXAMS OF IPCC – AUDITING ATTENTION STUDENTS: Dear students, you shall not rely on this Guess questions completely. Since you are writing a professional examination, it is near to impossible to guess the question paper. First do your preparation very seriously and use this list as a last resort. Just revise the problems or questions in this list for 3 to 4 times and be thorough with all the questions / problems listed in this document. This is only a supplement or compliment for your preparation but this can’t act as your preparation alone. Management of MASTER MINDS can’t guarantee that any of this questions / problems will come in the main examinations of IPCC and it is not responsible for any negative consequences of relying on this work completely. CHAPTER – 1: INTRODUCTION OF AUDITING No. 1. Question Contents of letter of engagement. Need for its circulation for each period in case of recurring audits. CHAPTER – 2: CONCEPTS OF AUDITING No. Question 1. Differences between continuous and final audits 2. Surprise check 3. Write about analytical procedures. How much the auditor can place his reliance on analytical procedures? CHAPTER – 3: AUDIT EVIDENCE No. Question 1. Reliability standards (SA 500) 2. Audit methods to obtain audit evidence CHAPTER – 4: AUDIT PREPARATION No. Question 1. Types of audit programme and precautions to be taken while preparing it. 2. Audit note book 3. Audit working papers are the property of the auditor – comment 4. Sampling risk 5. Precautions to be taken while going for test checking 6. Advantages of statistical sampling CHAPTER – 6: COMPANY AUDITOR No. Question 1. Rights of auditor 2. Casual vacancy 3. Removal of auditor 4. Management responsibility, Auditor’s responsibility, other matter paragraphs 5. Qualifications & Disqualifications 6. Appointment of auditors (very important special resolution 224A) 7. Ceiling on Number of audits 8. Duties of the auditor PAGE 1 OF 3 LIST OF IMPORTANT QUESTIONS (GUESS QUESTIONS) FOR NOV 2014 EXAMS OF IPCC – AUDITING CHAPTER – 7: MISCELLANEOUS MATTERS IN COMPANY AUDIT No. Question 1. How to deal with the modifications of branch auditor’s report. 2. Interest on capital 3. Cost audit 4. Special audit 5. Responsibilities of joint auditors CHAPTER – 8: SPECIAL AUDIT No. Question 1. Club houses 2. Cinema theatres 3. Hospitals 4. Charitable institutions 5. Special features in administration of local bodies CHAPTER – 9: GOVERNMENT AUDIT No. 1. 2. Question Government expenditure audit Commercial accounts audit CHAPTER – 10: EDP AUDIT No. 1. 2. 3. Question Audit through and Audit around the computer CAAT Audit trail CHAPTER – 11: AUDIT OF SHARE CAPITAL No. 1. Question Shares at premium CHAPTER – 13: AUDIT OF CASH TRANSACTIONS No. Question 1. Income tax payment 2. Travelling expenses 3. Selling agent commission 4. Bad debts 5. Insurance claims 6. Sale of fixed assets 7. Cut off procedures 8. Goods sent on consignment 9. Sale of empties PAGE 2 OF 3 LIST OF IMPORTANT QUESTIONS (GUESS QUESTIONS) FOR NOV 2014 EXAMS OF IPCC – AUDITING CHAPTER – 15: VERIFICATION & VALUATION OF ASSETS No. 1. 2. 3. 4. 5. 6. 7. Question Debentures as collateral security Plant & machinery Loans given Investments Inventory Preliminary expenses Loans taken CHAPTER – 16: VERIFICATION OF LIABILITIES No. 1. Question Proposed dividend CHAPTER – 17: INTERNAL CONTROL No. 1. Question Contents of letter of weaknesses as per SA 265 CHAPTER – 18: COMPANIES (AUDITOR'S REPORT) ORDER, 2003 No. 1. Question CARO applicability and clauses : 1,2,3,5,7,9,10 IMPORTANT AREAS FOR SA’S: SA 200 SA 200 SA 220 SA 230 What is reasonable assurance? Why auditor cannot obtain absolute assurance? What are basic principles governing an audit? SA 315 Engagement Quality control review Audit completion memorandum Risk assessment procedures What audit procedures the auditor should carry out to verify compliance of laws & regulations by an entity in an audit. How he should deal with the non compliances detected. Risks at financial statement and assertion levels SA 505 SA 510 Positive and negative confirmation requests Changes in accounting policies (SA 510) SA 240 SA 250 SA 550 SA 560 What procedures the auditor has to carry out to obtain information about the related parties of an entity. Subsequent events (SA 560) practical questions SA 580 SA 610 Factors indicating threats to going concern. How the auditor shall report if going concern assumption is not appropriate. Written representation Using the work of an internal auditor SA 620 Considerations while using the work of an expert (SA 620) SA 570 THE END PAGE 3 OF 3