Capital Market and Auditing

Time Allowed: 2 Hours Maximum Marks: 50 All questions are compulsory. Answer all part of question together otherwise it will not be graded.

1) RIL Ltd have purchased refinery Machinery from BP PLC. The finance manager of RIL Ltd seeking advice on applicability of relevant accounting standard. Choose the correct answer: a. AS 6 b. AS 10 c. AS 6 & AS 10 d. AS 5 2) The following is not the process of internal Audit a. Planning b. Feedback c. Investigation d. Improvement Actions 3) Mr Khan has sold the goods worth 1000. He want to your advice on accounting s;8tandard. covers Choose the correct answer: a. AS 1 b. AS 9 c. AS 3 d. AS 4 4) Who is issuing authority for Standard of auditing Standard a. ICAI b. SEBI c. ICSI d. ICWAI 5) Is Statutory auditor required to comment on the internal Auditor a. Yes b. No c. Not applicable d. In some condition, 5 Marks 6) BSR and Company, Statutory auditor of ICICI bank relied for Forex Portfolio valuation on report of other expert. After some time RBI has ordered investigation on portfolio valuation. On investigation it was found those portfolios were undervalued. Comment on the position of BSR & Co. 5 Marks 7) Ms. Sonali Bendre an articled clerk seeking your help on determining the scope of audit for one of her client. Put the point she should covered in her scope of the audit. 5 Marks

8) Ernst & Young have audited the account of ITC Limited .Later on it were found that one of the account has wrongly posted, having profit understated by RS 100. Give your comment. 5 Marks 9) Can the statutory auditor rely upon the work of an internal audit? Write the difference between Internal Audit and Statutory Audit. 5Marks 10) After the statutory audit has been completed a fraud has been detected at the office of the auditee. What is your defense as an audit? 5 Marks 11) Deloitte Haskin and sells has been appointed internal auditor of RIL Ltd. Comment on the function and responsibilities of the Deliotte. 5 Marks 12) Comment on the in case where audit sample selection has been done on random basis no statistical process for selection of sample need to be followed. 13) Write Short note on the following a. True and Fair view b. Audit and Investigation c. Ethics and professional Judgment of Auditor d. Quality Control. 10 Marks