Auditing Important Questions 2025 [Dibrugarh University: BCom 6th Semester CBCS]

Are you preparing for the Dibrugarh University BCom 6th Semester CBCS Pattern Auditing examination? In this post, we have compiled the most important questions for your upcoming 2025 exam. Auditing is a crucial subject that enhances your understanding of financial verification and accountability. Mastering this subject is not only essential for clearing your exams but also valuable for future careers in accounting, finance, and auditing professions.

Dibrugarh University: BCom 6th Semester (CBCS)

Auditing Important Questions 2025

Unit I: Audit & Audit Process

Section 1: Objective Type, Fill in the Blanks, MCQs, True/False (1 Mark Each)

(1). Auditing starts where accounting ends. (True/False)

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(2). The main objective of auditing is:

(a) Detection of error

(b) To find out whether profit and loss account and balance sheet show true and fair state of affairs

(c) Detection of fraud

(d) Detection and prevention of fraud and errors

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(3). A continuous audit is needed for:

(a) Any trading concern

(b) Smaller concern

(c) Banking companies

(d) Any manufacturing concern

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(4). Internal auditor is appointed by:

(a) Management

(b) Shareholders

(c) Government

(d) None of the above

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(5). The objective of internal audit is:

(a) To prevent error and fraud

(b) To detect error and fraud

(c) To improve financial control

(d) All of the above

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(6). When financial transactions are examined at the time of happening, it is called __________ audit.

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(7). Remuneration of the internal auditor is fixed by shareholders. (True/False)

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(8). Internal check is a part of:

(a) Internal audit

(b) Internal control

(c) External audit

(d) None of the above

(9). The attest function of auditing ensures:

(a) Preparation of accounts

(b) Verification of financial statements

(c) Detection of all errors

(d) None of the above

(10). Audit sampling is used to:

(a) Check every transaction

(b) Test a representative portion of transactions

(c) Prepare financial statements

(d) None of the above

Section 2: Short Notes (4 Marks Each)

(1). Explain the meaning and importance of auditing.

(2). Write a short note on the attest function of auditing.

(3). Discuss the objectives of auditing.

(4). What are the various classes of audit?

(5). Write a short note on continuous audit.

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(6). Explain the concept of internal control.

(7). Write a short note on internal audit.

(8). Discuss the importance of audit planning.

(9). What is an audit programme?

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(10). Explain the role of audit evidence and working papers.

(11). Write a short note on audit sampling.

(12). What is internal check?

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Section 3: Questions for 14 Marks

(1). What do you mean by auditing? Discuss the basic principles while conducting an audit.

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(2). Define auditing. Explain its importance and objectives in the context of a business organization.

(3). What is meant by the attest function in auditing? Discuss its significance and how it differs from other functions of auditing.

(4). Explain the meaning of audit process. Discuss the steps involved in planning an audit.

(5). What is a continuous audit? Discuss its advantages and limitations.

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(6). Distinguish between internal audit and external audit. Discuss the role of internal audit in an organization.

(7). What is internal control? Explain its importance and how it aids the audit process.

(8). Discuss the concept of internal check. Describe its objectives and advantages in the audit process.

(9). What is an audit programme? Discuss its importance and steps involved in its preparation.

(10). Explain the role of audit evidence and working papers in the audit process. How do they contribute to forming an audit opinion?

(11). What is audit sampling? Discuss its significance and methods used in auditing.

(12). “An audit is not a complete safeguard and insurance against all financial ills.” Discuss this statement with reference to the audit process.

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(13). Distinguish between continuous audit and periodical audit. Explain the situations where continuous audit is applicable.

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(14). Examine critically the role of auditing in the efficient and economical conduct of a business concern. Explain its advantages to different user groups. (Dibrugarh University BCom 2014)

Unit II: Audit Procedures

Section 1: Objective Type, Fill in the Blanks, MCQs, True/False (1 Mark Each)

(1). Stock should be valued at:

(a) Cost

(b) Market price

(c) Cost or market price whichever is lower

(d) Cost less depreciation

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(2). Patents must be valued at cost less depreciation. (True/False)

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(3). When written evidence is available in original, it is known as __________ voucher.

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(4). Routine checking is a part of:

(a) Vouching

(b) Verification

(c) Valuation

(d) None of the above

(5). Vouching is primarily concerned with:

(a) Existence of assets

(b) Valuation of assets

(c) Authenticity of transactions

(d) None of the above

(6). Verification ensures:

(a) Correct recording of transactions

(b) Ownership and existence of assets

(c) Detection of fraud

(d) All of the above

(7). Valuation of assets is the responsibility of:

(a) Auditor

(b) Management

(c) Shareholders

(d) Government

(8). Carbon copy of sales invoices is an example of a primary voucher. (True/False)

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(9). Routine checking includes:

(a) Checking of totals and balances

(b) Valuation of assets

(c) Verification of ownership

(d) None of the above

(10). Preliminary expenses are of __________ nature.

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Section 2: Short Notes (4 Marks Each)

(1). Write a short note on routine checking.

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(2). Explain the meaning and objectives of vouching.

(3). Discuss the importance of verification of assets.

(4). Write a short note on valuation of liabilities.

(5). What is vouching of ledger?

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(6). Explain the concept of errors of omission.

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(7). Write a short note on verification of contingent liabilities.

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(8). Discuss the difference between vouching and routine checking.

(9). What is the role of an auditor in valuation of assets?

(10). Explain the process of vouching credit purchases.

Section 3: Questions for 14 Marks

(1). Define vouching. What are the objectives of vouching? Distinguish clearly between vouching, verification, and valuation.

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(2). Discuss the duties of an auditor in connection with the vouching of credit purchases and purchase returns.

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(3). What is a voucher? Discuss the duties of an auditor in respect of verification of purchase and sales ledger.

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(4). Explain the objectives of verification of assets. State the differences between routine checking and vouching.

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(5). What is vouching? Discuss the main points which must be taken care of while vouching the transactions.

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(6). What are the duties of an auditor regarding the valuation of intangible assets? Distinguish between verification and valuation.

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(7). Discuss the procedure for vouching cash sales and cash purchases in an audit.

(8). Explain the role of routine checking in auditing. How does it differ from verification and valuation?

(9). Discuss the steps involved in the verification and valuation of assets and liabilities.

(10). What is verification? Explain its objectives and how it ensures the reliability of financial statements.

Unit III: Audit of Limited Companies

Section 1: Objective Type, Fill in the Blanks, MCQs, True/False (1 Mark Each)

(1). Under Section 5 of the Companies Act, 2013, every company is required to have an Articles of Association. (True/False)

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(2). The company can buy back its shares only if it is authorized by its __________.

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(3). Section 143 of Companies Act, 2013 has laid down __________ requirement for the auditor.

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(4). Share Premium Account may be used for:

(a) Issuing bonus shares

(b) Writing off preliminary expenses

(c) Both (a) and (b)

(d) None of the above

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(5). No company shall have more than __________ directors unless approved by a special resolution.

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(6). An auditor is not liable to third parties. (True/False)

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(7). Violation of Sections 139, 143, 144, and 145 of the Companies Act implies a fine not less than __________.

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(8). Depreciation under Companies Act, 2013 is governed by:

(a) Section 123(1)

(b) Section 123(2)

(c) Section 143

(d) None of the above

(9). Divisible profits are determined after providing for:

(a) Depreciation

(b) Reserves

(c) Both (a) and (b)

(d) None of the above

(10). CARO 2016 is applicable to banking companies. (True/False)

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Section 2: Short Notes (4 Marks Each)

(1). Write a short note on the qualifications of a company auditor.

(2). Discuss the powers of a company auditor under the Companies Act, 2013.

(3). Explain the concept of managerial remuneration.

(4). Write a short note on audit of share capital.

(5). What is meant by divisible profits?

(6). Discuss the sources of dividend.

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(7). Write a short note on audit of forfeiture of shares.

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(8). Explain the provisions for depreciation under Companies Act, 2013.

(9). What is a secret reserve?

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(10). Discuss the duties of an auditor regarding redemption of preference shares.

Section 3: Questions for 14 Marks

(1). Discuss the provisions of the Companies Act, 2013 regarding qualification, disqualification, and removal of an auditor.

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(2). State clearly the rights and duties of an auditor of a company under the Indian Companies Act.

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(3). Explain the procedure of issue of shares at premium and at discount under the provisions of the Companies Act, 2013. Point out the auditor’s duties in this connection.

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(4). How will you examine the following items while auditing the accounts of a limited company: (i) Issue of Bonus Shares, (ii) Redemption of Preference Shares, (iii) Forfeiture of Shares?

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(5). Explain the provisions of depreciation applicable to companies under Section 123(2) of Companies Act, 2013. Discuss the duties of an auditor as regards provision for depreciation.

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(6). Describe the various sources from which dividends may be paid by a company. Mention the auditor’s duties with regard to payment of dividends.

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(7). Discuss the auditor’s duties in connection with the audit of share capital and debentures of a limited company.

(8). Explain the concept of divisible profits and dividends. Discuss the legal provisions and auditor’s role in ensuring compliance.

(9). What are the liabilities of a company auditor under the Companies Act, 2013? Discuss with examples.

(10). Discuss the special points arising in the audit of a cooperative society.

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Unit IV: Reporting

Section 1: Objective Type, Fill in the Blanks, MCQs, True/False (1 Mark Each)

(1). U/S 129(2), the auditor’s report is attached to every financial statement. (True/False)

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(2). Audit report with reservation is known as __________ Audit Report.

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(3). A qualified audit report indicates:

(a) No issues in financial statements

(b) Minor issues with exceptions

(c) Major misstatements

(d) Inability to form an opinion

(4). An adverse opinion is issued when:

(a) Financial statements are true and fair

(b) Financial statements are materially misstated

(c) Evidence is insufficient

(d) None of the above

(5). The auditor’s report must be signed by:

(a) Management

(b) Auditor

(c) Shareholders

(d) Government

(6). A disclaimer of opinion is issued when:

(a) Financial statements are accurate

(b) Auditor cannot obtain sufficient evidence

(c) Minor errors are found

(d) None of the above

(7). The audit report is addressed to:

(a) Management

(b) Shareholders

(c) Government

(d) All of the above

(8). The audit report must bear a __________ on it.

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(9). A clean audit report enhances:

(a) Credibility of financial statements

(b) Detection of fraud

(c) Valuation of assets

(d) None of the above

(10). The Companies Act, 2013 requires the auditor to report on fraud under Section __________.

(Fill in the blank)

Section 2: Short Notes (4 Marks Each)

(1). Write a short note on independent auditor’s report.

(2). Explain the features of a good audit report.

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(3). What is a qualified audit report?

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(4). Discuss the importance of an audit report.

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(5). Write a short note on standard audit report.

(6). Explain the concept of a disclaimer of opinion.

(7). What are the elements of an audit report?

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(8). Discuss the specimen of a clean report.

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(9). What is meant by reporting under Companies Act, 2013?

(10). Explain the significance of a qualified opinion in an audit report.

Section 3: Questions for 14 Marks

(1). What is an audit report? Explain briefly about the various types of audit reports.

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(2). Discuss the elements and features of a good audit report.

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(3). What do you mean by audit report? Explain the provisions of the Companies Act regarding audit reports.

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(4). Explain the importance of an audit report. Discuss its role in ensuring transparency and accountability in financial reporting.

(5). What is a qualified audit report? Discuss its implications and how it differs from an unqualified report.

(6). Discuss the legal requirements for an auditor’s report under the Companies Act, 2013. Explain the auditor’s responsibilities in reporting fraud.

(7). What are the different types of audit opinions? Discuss their significance in the context of financial reporting.

(8). Explain the structure and contents of a standard audit report. How does it differ from a qualified report?

(9). Discuss the role of an audit report in decision-making for stakeholders. Provide examples of its utility.

(10). What is an independent auditor’s report? Discuss its importance and the conditions under which it may be qualified.

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Complete Solution

Final Words

Auditing is not difficult if you prepare thoroughly. These important questions will help you understand key concepts and perform well in your Dibrugarh University BCom 6th Semester exams. Start your preparation early, revise regularly, and seek help if needed. Stay focused, practice diligently, and give your best effort.