CA Inter Audit Lec 69 & 70

GA.3

The C&AG Act gives which of the following power to the C&AG in connection with the performance of his duties

• a) To inspect any office of accounts under the control of the Union or a State Government including office responsible for the creation of the initial or subsidiary accounts

• b) To require that any accounts, books, papers and other documents which deal with or are otherwise relevant to the transactions under audit, be sent to specified places.

• c) To put such questions or make such observations as he may consider necessary to the person in charge of the office and to call for such information as he may require for the preparation of any account or report which is his duty to prepare.

• d) All of the above

GA.5

Public enterprises are required to maintain commercial accounts and are generally classified under three categories. Which of the following is not a category relating to above:

• a) departmental enterprises engaged in commercial and trading operations, which are subject to the same laws, financial and other regulations as other government departments and agencies;

• b) statutory bodies, corporations, created by specific statutes mostly financed by government in the form of loans, grants, etc.; and

• c) government companies set up under the Companies Act, 2013.

• d) Charitable Trusts

GA.4

After a Government expenditure has been incurred and the accounts are closed, the Appropriation Accounts are prepared which are scrutinised by the

• a) CAG

• b) President

• c) Public Accounts Committee

• d) Parliament

COP.2

Under section 43(h) of the Central Act, who can frame rules prescribing the books and accounts to be kept by a co-operative society?

• a) Central Government

• b) State Government

• c) Management Committee of the Society

• d) Secretary of the Co-operative Society

COP.1

In addition to the audit certificate in the prescribed form and various schedules, the auditor of a Co operative society in the applicable State has to answer two sets of questionnaires called as

• a) Internal Control Questionnaires

• b) Audit Supplements

• c) Audit Memos

• d) Memorandum reports

Incs.60.5

While conducting the audit of receipts of HAIL Ltd., which of the following area is to be covered as part of Audit of Receipts?

1. Whether all revenues or other debts due to government have been correctly assessed, realised and credited to government account by the designated authorities of HAIL Ltd.

2. Whether adequate checks are imposed to ensure the prompt detection and investigation of irregularities, double refunds, fraudulent or forged refund vouchers or other loss of revenue through fraud or willful omission or negligence to levy or collect taxes or to issue refunds.

3. Whether the expenditure incurred has been on the purpose for which the grant and appropriation had been provided and that the amount of such expenditure does not exceed the appropriation made.

4. Whether the various schemes/projects are executed and their operations conducted economically and whether they are yielding the results expected of them.

• a) Only statement 1 is correct

• b) Statements 1 & 2 are correct

• c) Statements 1,2,3,4 are correct

• d) Statements 1,2,3 are correct

Incs.50.1

The auditors also understand that according to section 5 of the Central Act, in the case of a society where the liability of a member of the society is limited, no member of a society other than a registered society can hold such portion of the share capital of the society as would exceed a maximum of a certain percentage of the total number of shares or of the value of shareholding to a specified amount. RAS & Associates were concerned with this provision so as to watch any breach relating to holding of share

“According to section 5 of the Central Act, what is maximum percentage of the total number of shares and what is the maximum value of shareholding that RAS & Associates were concerned with, so as to watch any breach relating to holding of shares?

• a) Twenty-five percent of the total number of shares or of the value of shareholding upto ` 5,000

• b) Twenty percent of the total number of shares or of the value of shareholding upto ` 5,000

• c) Twenty-five percent of the total number of shares or of the value of shareholding upto ` 1,000

• d) Twenty percent of the total number of shares or of the value of shareholding upto ` 1,000

Incs.50.2

While examining the loans of Best Tea House, the auditors notice that the society has given a loan to a relative named Mr. P, of a member of the society, Mr. T, of an amount not exceeding ` 1000. RAS & Associates examined the overdue debts and checked its classification which they are required to report.

“As per Section 29 of the Central Act, Best Tea House cannot give a loan to any person other than:

• a) A member and with the special sanction of the Registrar, relatives of the member not exceeding an amount of ` 1000.

• b) A member and with the special sanction of the Registrar, another registered society.

• c) A member and with the special sanction of the Registrar, relatives of the member

• d) A member and with the special sanction of the Registrar, another registered society not exceeding an amount of ` 1000.

Incs.50.3

“Overdue debts for a period from _____________to_______ and more than _____ were classified and reported by RAS & Associates.

• a) 3 months to 6 months and more than 6 months

• b) 6 months to 3 years and more than 3 years

• c) 6 months to 5 years and more than 5 years.

• d) 3 months to 5 years and more than 5 years

Incs.50.4

RAS & Associates notice few transactions for personal profiteering by members of the management committee, which are ultimately detrimental to the interest of the society. RAS & Associates report this matter to the required authority to take necessar y action.

“To whom does RAS & Associates report the few transactions noticed during audit?

• a) Registrar of Co-operative Societies

• b) Secretary of Best Tea House.

• c) State Government

• d) Management Committee of Best Tea House