(BBA 3rd Year 5th Semester) Auditing and the public Accounting profession

BBA 3rd Year 5^th Semester

BBA-3102(Auditing)

Chapter: 1

(Auditing and the public Accounting profession)

1.      Define Audit/Auditing.

2.      Types of Audit.(2009)

3.      Types of Auditors.

4.      What are the services performed by CPA firm? Or, what are the Attest and Non Attest services.

5.      What is AICPA? (2009) (2007)

6.      Distinguish between Internal audit and statutory audit. (2006)

7.      What are the major purposes of an internal Audit? (2007)

Chapter: 2

(Financial statements audit and auditor’s Responsibilities)

1.      Define Accounting & Auditing.(2009)

2.      Explain the relationship between Accounting & Auditing.

3.      Distinguish between Accounting and Auditing. (2007)

4.      What are the needs of financial statements audit.(Boy-35) (2010)

5.      What is Information risk (2010) (Boy-36)

6.      What are functions of  an Accountant an Auditor.(2007)

7.      What are the economic benefits of an audit? (2010) (2006)

8.      What are the limitations of a financial statement Audit?

9.      Enumerate the ten Generally Accepted auditing standards. (Boy-41)

10. Define Auditor’s Report & Standard report.

11. What are the basic Elements of a standard Report? (Boy-46)

12. What are the basic features of a standard Report?

13. What are the basic contents of a standard Report?

14. State four types of opinion that may be expresses.

15. What is Explanatory language, Management Representation letter?

16. (a)What is Expectation Gap? How this gap can be narrowed?

         (b) What are the responsibilities of an auditor in narrowing this gap? (2007) (2010) (2009)

17. Distinguish between terms errors and irregularities.

18. Explain the auditor’s responsibility for (I) errors and irregularities (ii) Illegal clients Act.

19.  Explain the concept of going concern. Discuss the indications that signify the inappropriateness of ‘going concern’. (2011)(Boy:58/771-772)

20. Discuss the importance of Audit Report. (2006)

Chapter: 3

                                                            Professional Ethics

1.      What is professional ethics in auditing? (2006)

2.      Define code of ethics in the perspective of Audit. (2011)

3.      What is the purpose of professional Ethics? (2009)

4.      Describe the ethical principles to be maintained by an auditor.(2008), (2006)

5.      What do you mean by Auditor’s Ethics? (2008)

6.      What are the responsibilities of an auditor regarding “confidential client Information” (2007)

7.      Discuss some situation when you can disclose the “confidential client information”.  

8.      What do you mean by auditor’s independence, integrity & objectivity, professional competence & due care as per general principles of an audit? (2011)

9.      What is Errors of omission?

Chapter: 4

Audit objectives, Evidence and working papers

1.      State the five categories of management’s financial statement assertions.

2.      Explain the different types of audit procedures.(2009)

3.      Distinguish between tracing and vouching.

4.      ‘Vouching is the heart of auditing’ explain (2010).

5.       (a) what is test checking in auditing.(2007)

 (b) Under what conditions would you resort to this method of checking? (2007)

6.      Explain the techniques involved in vouching. (2007)

7.      What is the basic objective “verification of assets”. (2007)

8.      What is vouching and verification? (2006)

9.      What is audit Evidence? Describe the ways of collecting Audit Evidence. (2006)

10. Identify three types of substantive Tests.  (2011)

11. What is a dual purpose Tests?

12. What are working papers? Explain the Essentials of good working papers. (2008)       (Tandon)

13. Distinguish between Compliance & Substantive procedure in auditing. (2006) (Tandon-35)

14. What is auditing in depth? Give an example. (2010)

15. Discuss the duties of an auditor in connection with credit sales. (2006) (Tandon)

16. Briefly discuss vouching & valuation of liabilities in audit. (2006)

17. How profit & less a account can be audited? (2006)

18. What steps are followed to conduct balance sheet audit? (2006)

19. How is the trading & profit & less account scrutinized? (2006)

20. Identify three types of substantive Tests.  (2011)

21. What is a dual purpose Tests?

22. Identify the types of corroborating information available to the auditor.

23. Explain ten types of audit procedures.

24. What are working papers? Explain the Essentials of good working papers. (2008)       (Tandon)

25. Explain the nature & purpose of audit working papers.

26. What are the different types of working papers?

27. What are the essential techniques of good working paper preparation?

28. Distinguish between Compliance & Substantive procedure in auditing. (2006) (Tandon-35)

29. What is auditing in depth? Give an example. (2010)

30. Discuss the duties of an auditor in connection with credit sales. (2006) (Tandon)

31. Briefly discuss vouching & valuation of liabilities in audit. (2006)

32. How profit & loss account can be audited? (2006)

33. What steps are followed to conduct balance sheet audit? (2006)

34.  How is the trading & profit & loss account scrutinized? (2006)

35. “Audit evidence is persuasive rather than conclusive”. Explain the statement.

                                                    Chapter: 5                                                                                   

Accepting the Engagement & Planning the Audit

1.      What do you mean by Engagement letter? What are the principal contents of an audit engagement letter? (2010)

2.      How should the auditor accept a change in engagement? (2010)

3.      Describe the “Risk Assessment process” in audit planning process. (2009)

4.      What is audit planning? Why audit plan should be made? (2006)

5.      Mention the various aspect of audit plan. (2006)

6.      What is audit committee? (2008)  (2011)

7.      Describe the objectives & functions of audit committee. (2011)

8.      Briefly discuss the various steps of audit plan.

Chapter :6

 Materiality, Risk & preliminary audit strategies

1.      Define the term ‘materiality’. what are the differences between material account balance &  account balance materiality? (2011)

2.      What are the factors the auditor should consider for determining the materiality level of the financial statement? (2011)

3.      Describe the importance of setting account balance level materiality in the perspective of audit. (2011)

4.      What steps to be followed in case of applying the materiality for the financial statements? (2011)

5.      How does materiality affect in financial & accounts balance level? (2007)

6.      Describe the interrelationship among materiality, audit risk & audit evidence. (2007)

7.      What is audit risk? Describe the components of audit risk?

8.      Briefly discuss regarding the audit risk of financial statement level & account balance level. (2008)

Chapter: 7

Understanding the internal control structure

  1. (a) Internal control is the combination of accounting control & administrative control explain? (2006, 2008) (Tandon)

   (b) Why is it significant for a business organization? (2006)

  (c) Describe the characteristics of effective internal control?  (2006, walli-70)

  2. What are the objectives of internal control? (2008)

  3. Describe the documentations of internal control? (2009)

  4. Distinguish among internal check, internal audit & internal control? (2010)

  5. Briefly describe a system of internal check for payment of wages for a large scale manufacturing concern?  (2010)

   6. Briefly discuss the components of internal control structure.

  7. Devise a system of internal check for a small concern? (2007)

Chapter: 8

 Assessing control risk & test of control

1.      What is the test of control? Describe the relationship between test of control & assessing control risk. (2009, 2007)

2.      What is assessing control risk? what should an auditor do to assess control risk ?(2008, boy-301)

3.      What are the steps in designing substantive tests? (2007,2009)

4.      What are the different types of test of control?

Chapter: 9

Detection Risk & design of substantive test

1.      Explain the designing steps of substantive tests. (2007,2009)

2.      What is audit program? Evaluate the audit program.(2006)

3.      What is audit note book?(2009)

4.      (a) Is it necessary for an auditor to make notes in the course of the conduct of an audit?(2007)

(b) What notes should he make? (2007)

(c) Should these be necessarily recorded in a separate book? (2009)

5.      Distinguish between Test of control & substantive test.(2011)

6.      What is substantive test? Describe the general framework for developing audit program of substantive test.

7.      What are the special considerations in designing substantive test? (2007)

Chapter: 10

Completing the Audit & post audit responsibilities

1.      Describe the auditors responsibility in completing the audit.(2007)

2.      a) Define the post balance sheet events.(2011)

b) Enumerate the responsibilities of the auditor regarding the post balance sheet events & transactions.(2011)

3.      What is Contingency? What are the GAAS requirements in case of contingent gain & liability?

4.       State the auditors post audit responsibilities. (2009)

5.      What is letter of audit enquiry?

6.      What is management representation letter?

Chapter: 11

Reporting on audited financial statement

1. (a) What standards are to be followed by an auditor in reporting? (2008) (Boy:757-756)

  (b)Mention the types of opinion that can be included in auditor’s report. (2009)

  (c)Mention the circumstances under which adverse opinions are given by auditor. (2009)  

2. When and how can an auditor qualify his report? Mention at least four reasons. (2008)

3. Distinguish between ̒̓Auditor’s Report’ &‘Auditor’s certificate’. (2006)(2008)(Tendon)

4 (a) what do you mean by “true & fair view audit opinion”? (2006)(Tendon)

  (b) What are the requirements of fair presentation? (2006)

5. When an auditor may provide qualified opinion? (2006)

6. Discuss the qualification of a good report. (Tendon)

7. What are the responsibilities of an auditor if there has been a limitation of scope of the            audit?

Chapter 12

(Accounting profession in Bangladesh)

1.      GAAS/Auditing Standards. Explain

a.      GAAP(Generally Accepted Accounting principles), ISA & its objectives, benefits.

b.      GAAP(Generally Accepted Auditing Practices)Explain.

2.      ICAB, ICMAB. (2009)

3.      Classify the membership of ICAB & ICMAB. (2006)

4.      Discuss the classification of the International Audit Standards adopted in BD by ICAB. (2009)

5.      Mention some differences between ICAB & ICMAB. (2010)

6.      “Accountants are professional”-Explain.

7.      What are the legal provisions of appointment of a Company auditor? (2009)

8.      Mention the qualifications (2010), disqualifications, powers & removal procedures of an auditor under the Company’s Act. 1994. (2009)

9.      Give a brief idea of auditing profession in BD. (2010)

10. Discuss the importance of auditing of non-financial institutions. (2010)

11. Discuss the liability of an auditor under the Company’s Act.1994. (2008), (2006)

12. Define cost audit. Differentiate cost audit from financial audit. (2008), (2009)

13. Briefly explain the benefits of cost audit. (2011)

14. Mention the mandatory cost audit area as per Govt. notification. Briefly describe the various annexure as attached with the cost audit report.(2011)

15. Short Note:

      1. Continuous Audit. (2009)

      2. Govt. Audit Vs Commercial Audit. (2010)

      3. Social Audit. (2010)

      4. Partial Audit.

      5. Substance over form. (2010)

      6. Cost audit in BD. (2010)

      7. Comptroller & Auditor General (2011)