IIBMS – Audit management

1. What is audit programme? Discuss the advantages and disadvantages of conducting an audit according to a predetermined audit programme. How can these disadvantages be overcome?
2. What is routine checking? What types of work are included in routine checking? What are the objectives of routine checking? Describe the advantages and disadvantages of routine checking. Discuss the duties of an auditor in this regard.
3. Is it absolutely necessary that depreciation should be provided for before profits are distributed as dividend? What are the provisions of the Companies Act, 1956 regarding the quantum of depreciation to be provided for in the annual accounts?
4. An enterprise purchases an item of machinery on 1.4.2002 for Rs. 1,00,000. It depreciates this item at the rate of 10 % per annum on straight-line basis. On 1.4.2005, the enterprise decides to change the method of depreciation from straight-line to written down value. The applicable rate under the new method is 15 %. How should the enterprise give effect to this change in the method of depreciation?
5. State the provisions of the Companies Act, 1956 regarding the declaration and payment of dividend.
6. State the provisions of the Companies Act, 1956 regarding declaration and payment of Interim dividend. What would be the duty of an auditor in connection with such dividend?
7. What are the different purposes of investigation? Distinguish between investigation and audit.
8. Mention the circumstances under which an investigation of a company can be ordered by the central government? What should be the procedure of investigation in such case?
9. A fraud is suspected in a business house and you are asked to carry out an investigation. Explain briefly how you would proceed in this matter.

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