ECO-12 Elements of Auditing July – Dec 2011

1. “Auditing begins where Accountancy ends.” Discuss this statement. How does Accountancy differ from Auditing? (10, 10)

2. Write Short note on the following:

(i) Internal Cheek

(ii) Internal Audit

(iii) Internal Control (8, 6, 6)

3. How would you value the following:

(i) Intangible Assets

(ii) Investment

(iii) Patents

(iv) Goodwill (4 × 5)

4. “An auditor is a representative of shareholders and also an officer and an employee of a company.” Do you agree? Discuss the rights and duties of an auditor. (10, 10)

5. Distinguish between the following:

(i) Clean & Qualified Report

(ii) Auditor’s Report & Auditor’s Certificate. (10, 10)