CWA ICWA Question Papers Inter Group I Commercial and Industrial Laws and Auditing June 2010

CWA ICWA Question Papers Inter Group I

Commercial and Industrial Laws and Auditing June 2010



This Paper has 50 answerable questions with 0 answered.
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 & Question No. 5 which are compulsory and attempt any two
from the rest in Section I and any two from rest in Section II
SECTION I (Marks 50)
(Commercial and Industrial Laws)
1. Comment on the following statements based on legal provisions (No marks for wrong Reasons/Justification). 2×7
(a) Gratuity can be attached in execution of a decree or order of any civil revenue or criminal court. (0)
(b) During 2001– 02, the number of employees were 50 and subsequently reduced to 10 during 2009–10. Employer discontinued deduction as EPF not applicable due to reduction of Employees. (0)
(c) Mr. Roy sells by auction, to Mr. Paul a cow which Mr. Roy knows to be unsound. Mr. Roy says nothing to Mr. Paul about the cow’s unsoundness. This is a clear of fraud by Mr. Roy. (0)
(d) Sale and Agreement to sale are same. (0)
(e) Cheque for Rs. 2,00,000 issued by Mr. Nair was returned unpaid with remarks “account closed”. Hence drawee has no remedy. (0)
(f) Rights to information Act 2004 provides that Public Information Officer is required to furnish the Information within 15 days from the date of receipt of application with a fee of Rs. 50/–. (0)
(g) Mr. Tarafdar instruct Mr. Kinkar a merchant to buy a ship for him. Mr. Kinkar employs a renowned ship surveyor to choose a seaworthy ship for Mr. Tarafdar. The ship turns out to be un seaworthy and is lost. Mr. Kinkar, who is agent is responsible. (0)
2. (a) Mr. ‘A’ agrees that Mr. A shall sell Mr. B a house for Rs. 1,00,000 but if Mr. B uses the house for ‘Gambling House’ then Mr. B shall pay Rs. 1,50,000 for the same. Explain the legality. 2 (0)
(b) A contract without adequate consideration is not a contract–offer your views. 2 (0)
(c) Discuss the position of Agent appointed by minor. 2 (0)
(d) An exchange of goods for goods is a sale. Comment with Rule position. 2 (0)
(e) When sale is complete in an Auction sale. 2 (0)
(f) Factories Act provides certain precaution measures in case of five–give details. 4 (0)
(g) Under what circumstances compensation is not payable (Workmens Compensation Act 1923.) 4 (0)
3. (a) Write short notes on any four 4×4
(i) Undue influence (0)
(ii) Right of resale (0)
(iii) Industrial Disputes (0)
(iv) Working hours for children (0)
(v) Consumer (Consumer Protection Act 1986) (0)
(b) Give correct answer if the following statements are wrong:
A limited liability partnership must ensure that
(i) Where a person becomes or ceases to be a member or designated member, notice is delivered to the Register within 30 days.
(ii) Where there is any change in the name or address of a member, notice is delivered to the Registrar within 30 days.
1+1 (0)
4. (a) Mr. Roy give Mr. Ghosh on hire, a horse for his own riding but Mr. Ghosh drives the horse in his carriage. What action Mr. Roy can take? 2 (0)
(b) A saved life of ‘B’, when ‘B‘ was drowning. Later ‘A‘ sued ‘B‘ for remuneration/reward because saving life was the consideration received by ‘B’ . State based on Rules whether ‘A’ would succeed? 2 (0)
(c) Sale and Bailment are same. Do you agree? 4 (0)
(d) Manager of the factory fixed the working hours of women from 6 p.m. to 1 a.m. during the period from Monday to Friday of first week of May 2010. Whether it is permissible, cite with Rule position. 2 (0)
(e) As per factories Act ‘First Aid Boxes’ shall be provided and maintained not less than one for every 200 workers ordinarily engaged. 2 (0)
(f) When and to whom gratuity is payable? 4 (0)
(g) What is negotiation? 2 (0)
SECTION II (Marks 50)
5. Comment on the following statements based on legal provisions(No marks for wrong reasons). 2×7
(a) US GAAP is not different from India GAAP. (0)
(b) Auditor is not liable in case of honorary Audit. (0)
(c) Besides statutory Audit by Chartered Accountants, Comptroller and Auditor General of India conducts Audit of Government Companies. Hence Internal Audit is not necessary in Government Companies. (0)
(d) Cost Audit is submitted to the Company within 90 days from the end of Company’s financial year. (0)
(e) Scope of management Audit is limited to review the Audit Reports of Statutory Auditor and Internal Auditor. (0)
(f) CARO is not applicable to Private Company. (0)
(g) To comply with CARO, Auditor is to comment in his Report on “Application of Term Loan”–comment. (0)
6. (a) Find out the difference between US–GAAP and India–GAAP in respect of R & D 4 (0)
(b) What are the basic items/areas you will consider for review of Fixed Capital assets? 4 (0)
(c) State the matters that should be considered to determine the effects of computer information system environment on the Audit. 4 (0)
(d) Internal Check is said to have some fundamental aims. If so give details. 4 (0)
(e) Articles of Association of ABC Ltd. provides that Fixed Deposit Receipts should not be shown to the statutory Auditor. Accordingly Manager(Accounts) refused to show. State the legality. 2 (0)
7. (a) A sum of Rs. 4,00,000 which was spent for Trial Production run was included inProduction Cost. Give correct answer if this was wrong. 2 (0)
(b) What are the disclosure requirements if the assets of a company are revalued. 2 (0)
(c) Statutory Auditor is to give a certificate regarding compliance of corporate Governance which is annexed with the Director’s Report. What are the documents and records to be checked by you before signing of such certificate. 4 (0)
(d) What are the control measures which the Auditor is concerned under computer information system. 2 (0)
(e) State what are the items to be verified for conducting “Stores Accounting”. 4 (0)
(f) How you will verify the interest received? 4 (0)
8. (a) How you will verify Petty Cash? 3 (0)
(b) How you will verify provision for taxation? 5 (0)
(c) What is expected under the CARO regarding (a) Internal Audit and (b) Fraud. 2+2 (0)
(d) Under what circumstances, Auditor has to Qualify his report. 4 (0)
(e) Name the circumstances where in the management audit is useful. (Name 4 such circumstances) 2 (0)

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