IPCC_Group 2_Test_3

Auditing and Assurance
 
TOPIC: Company Audit - 1

TIME: 1.5 hrs

Marks: 50

 
Answer all the questions.                                                                                                  10x5=50
 

1. A, a chartered accountant has been appointed as auditor of Laxman Ltd.  in the Annual General Meeting of the company held in September, 2016, which assignment he accepted. Subsequently in January, 2017 he joined B, another chartered accountant, who is the Manager Finance of Laxman Ltd., as partner. Comment.

 

1. Managing Director of PQR Ltd. himself wants to appoint Shri Ganpati, a practicing Chartered Accountant, as first auditor of the company. Comment on the proposed action of the Managing Director.

 

1. Rano Ltd. is a private limited Company, having paid up share capital of rupees 18 crore but having public borrowing from nationalized banks and financial institutions of rupees 72 crore. Analyse whether the manner of rotation of auditor will be applicable.

 

1. “ABC & Co.” is an Audit Firm having partners “Mr. A”, “Mr. B” and “Mr. C”, Chartered Accountants. “Mr. A”, “Mr. B” and “Mr. C” are holding appointment as an Auditor in 4, 6 and 10 Companies respectively. Provide the maximum number of Audits remaining in the name of “ABC & Co.” Provide the maximum number of Audits remaining in the name of individual partner i.e.  Mr. A, Mr. B and Mr. C.

 

1. While conducting the audit of a limited company for the year ended 31^st March, 2017, the auditor wanted to refer to the Minute Books. The Board of Directors refused to show the Minute Books to the auditor. Discuss the rights of the Auditor in this regard.

 

1. The auditor's report is considered to be modified under certain circumstances. Discuss.

 

1. State the disclosure required to be made  in the  financial statements  if they  do  not  comply  with the accounting standards.

 

1. What are the various types of companies covered under Companies (Auditor’s Report) Order, 2016 [CARO, 2016]?

 

1. Audit Committee is to be formed by each and every company and the auditor has right to vote      in the meeting of such Audit Committee. Comment.

 

1. ABC Company Ltd. removed its First Auditor before the expiry  of  his  term  without obtaining approval of the Central Government. Comment.

 
 All the best😊