CWA ICWA Question Papers Inter Group I Commercial and Industrial Laws and Auditing December 2008

CWA ICWA Question Papers Inter Group I

Commercial and Industrial Laws and Auditing December 2008

This Paper has 52 answerable questions with 2 answered.

I—P6(CIA)
Syllabus 2008
Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.
Answer Question No. 1 and Question No. 5 which is compulsory and attempt any two
from the rest in Section I and any two from rest in Section II.
SECTION I (Marks 50)
(Commercial & Industrial Laws)
Marks
1. Comment on the following statements based on legal provisions: 2×7
(a) An agreement with insufficiency of consideration is void abinitio; (1)
(b) Every employee in an establishment is entitled to bonus under the Payment of Bonus Act. (0)
(c) Mr. X offers to sell his Maruti car to Mr. Y for and intended sum of Rs. 90,000/- but by mistake he makes an offer in writing for Rs. 70,000/- instead of Rs. 90,000. Mr. X can plead mistake as defense . (0)
(d) Mr. X delivered 1000mt. steel pipes to Mr. Y. 100 mt. were not as per specification, hence Mr. Y refused to accept and informed Mr. X to take back at his cost and risk. Mr. X rejected Mr. Y’s request and demanded to return to Mr. X freight paid. State the correct position. (0)
(e) Consumer under Consumer Protection Act, 1986 means persons who obtain goods for resale or for any commercial purpose. (0)
(f) Public Information Officer shall as expeditiously as possible and in any case within 30 days of receipt of request provide the required information. (0)
(g) Workmen working a public utility services have right to go on strike even without giving notice. (0)
2. (a) Mr. Ramesh promised to pay Rs. 10,000/– on 30.10.08 jointly to Mr. Bhabesh and Mr. Naresh for some consideration. Mr. Bhabesh died on 1.9.08. On 30.10.08 Mr. Naresh demanded payment of whole amount of Rs. 10,000/–. Whether Mr. Naresh is justified? 2 (0)
(b) BEE owes Rs. 10,000/– to CEE. Amount was guaranted by GEE. Said debt becomes payable on 25.10.07. CEE does not sue BEE. Hence due to delay GEE is automaticall discharged from his surityship—Comment. 2 (0)
(c) In case of personal injury, the employer is liable to pay compensation within 3 months from the date when it fall due. State legal provisions. 2 (0)
(d) Personnel Manager told to Director that at least one canteen shall be provided in every factory. Do you agree? 2 (0)
(e) An agent retained all the stock and other papers of a principal until his pending dues are cleared by the principal State legal position. 2 (0)
(f) Calculate the amount of gratuity of Mr. X who joined the company on 1.5.78 and retired on 30.11.08 when his salary was Rs. 26,000/– per month. During November, 2008 he received overtime and incentive Rs. 5,000/–. (0)
(g) Mr. Ramesh direct his agent to sell his Maruti car. Agent buys the car for himself but in the name of his friend at Rs. 50,000/– against market price of Rs. 70,000/– without the consent of Mr. Ramesh. What action Mr. Ramesh can take? 2 (0)
(h) When and under what circumstances a person can receive pension under Employees Provident Fund Scheme? 2 (0)
(i) Dr. B has been dismissed by the Manager of an Industrial Establishment. Workmen demanded his reinstatement Comment legal position. 2 (0)
3. (a) What will be the consequences when goods are sold by person not the Owner and without Owner’s consent. 4 (0)
(b) Market of a cheque is not liable under N.I. Act for dishonour of cheque under certain conditions. State such conditions. 3 (0)
(c) One mistake was detected after passing of orders by the Commission under Competition Act, 2002. Whether such mistake can be rectified? If so, by whom and how? 3 (0)
(d) An employer is liable to pay compensation to his workmen even when the workmen is away from premises at the time of accident. State legal position. 4 (0)
(e) Who can file complaints under Consumer Protection Act, 1986? State the period of limitation if any for filing of complaints. 4 (0)
4. (a) Write explanatory notes on any four: 4×4
(i) Time is the essence of contract; (0)
(ii) Permissible deduction under Payment of Wage Act; (0)
(iii) Rights of the unpaid seller; (0)
(iv) Misrepresentation; (0)
(v) Sale and agreement to sell. (0)
(b) A dismissed employee is not entitled to bonus under Bonus Act — Comment, based on legal provision. 2 (0)
SECTION II (Marks 50)
(Auditing)
5. Comment on the following statements based on legal provision: 2×7
(a) US–GAAP is not different that of India. (1)
(b) Reserve not appearing on the balance sheet is a Secret Reserve and an Auditor is not supposed to very it. (0)
(c) Auditor can avoid checking of records where good internal check system exist. (0)
(d) When Information System Audit is an Information Technology Audit, the Auditor is required to have detailed knowledge of Auditing rather than information system. (0)
(e) To comply with the CARO in respect of LOAN the Auditor is to comments on certain points. (0)
(f) Management Audit is conducted by Statutory Auditor of the Company. (0)
(g) ABC Ltd. in its meeting held on 30.09.08 appointed Mr. X as Auditor of the company. Mr. X is holding Securities Valuing Rs. 500/– in that company from 01.01.07. Can he accept theappointment? (0)
6. (a) What are the contents of good Audit Report? 4 (0)
(b) As an Auditor, mention the points and books to be checked in connection with issue of Corporate Governance Report. 4 (0)
(c) Explain how the following are dealt with under the CARO:
(i) Fixed Assets
(ii) Deposit of Statutory Dues.
2+2 (0)
(d) State the particulars which are to be included in the balance sheet of holding company of its subsidiary. 4 (0)
(e) Risk occurring due to insufficient or incompetent evidence collected by the auditors to express his opinion on the financial statement is called an Audit Risk. Is the statement correct? 2 (0)
7. (a) How as an Auditor you will verify the “contingent liability”? 4 (0)
(b) What is Computer Assisted Audit Technique? 4 (0)
(c) How as an Auditor you will treat the amount received after 2 years? This was written off as Bad Debt. 2 (0)
(d) Statutory Auditor can be appointed as Internal Auditor of the same company for the same period. —Do you agree? 2 (0)
(e) What are the objectives of Operational Audit? 4 (0)
(f) Auditor in his Report is to comment whether the company has Internal Audit System commensurate with size and nature of its business. Whether this is applicable for all companies? 2 (0)
8. (a) In connection with Audit Risk information system Auditor is concerned with certain objectives. What are those? 2 (0)
(b) Auditor should test check controls established to reduce the risk associated with e–commerce transactions. State the position. 2 (0)
(c) State the need for Management Audit. 4 (0)
(d) Auditors are not required to get Inventory Valuation Certificate by the Company’s Management as he himself is qualified to ascertain the value. State the position. 2 (0)
(e) Auditor while undertaking Audit of environment of personal computer should know that inadequate control measures may creat serious problems. What are those? 2 (0)
(f) Audit Committee is only luxury to the company. Do you agree 2 (0)
(g) As an Auditor how you will verify the “investment”? 4 (0)

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