1. **What do you mean by Auditing?** - Auditing is the systematic examination of financial statements, records, and related operations to verify their accuracy and adherence to legal and regulatory standards. 2. **Define internal audit.** - Internal audit is an independent, objective activity designed to add value and improve an organization's operations by evaluating and improving the effectiveness of risk management, control, and governance processes. 3. **State the meaning of internal control.** - Internal control refers to the procedures and policies put in place by an organization to ensure financial integrity, accurate reporting, and regulatory compliance. 4. **What is Bookkeeping?** - Bookkeeping is the recording of financialtransactions in a systematic and organized manner. 5. **What is an Audit Notebook?** - An audit notebook is a record where the auditor notes important points, queries, and observations made during the audit process. 6. **Who is the owner of audit working papers?* - The auditor is the owner of the audit working papers. 7. **Define vouching.** - Vouching is the process of verifying the authenticity of entries in the accounting records by examining supporting documents. 8. **Mention any two methods of valuation of assets.** - 1) Market Value Method, 2) Cost Method. 9. **Who will be appointing the first auditor in a company?**- The Board of Directors appoints the first auditor within 30 days of incorporation. 10. **Write a note on Secretarial Audit.** - Secretarial audit is an independent verification of compliance with corporate laws and regulations by a qualified company secretary. 11. **Expand the term EDP** - Electronic Data Processing. 12. **Define Audit Report.** - An audit report is a formal opinion or disclaimer issued by an auditor after evaluating the financial statements and records of an organization. 13. **Give few examples of misconduct of an auditor.** - 1) Breach of confidentiality, 2) Falsification of audit documents. 14. **Give the meaning of test checking.**- Test checking is the process of selecting and checking a sample of transactions from a larger set to draw conclusions about the entire set. 15. **What is Cost Audit?** - Cost audit is the verification of cost accounts and adherence to cost accounting plans and practices in an organization. 16. **What do you mean by Verification?** - Verification is the process of ensuring that the assets and liabilities in the financial statements actually exist and are valued correctly. 17. **Define share capital.** - Share capital refers to the funds raised by a company through the issuance of shares. 18. **What are the duties of an auditor as regards audit of the Call in arrear?** - The auditor must verify the correctness of calls in arrear and ensure proper disclosure in the financial statements.19. **How is the remuneration of a company auditor determined?** - The remuneration of the auditor is determined by the shareholders in a general meeting or as per the company's articles of association. 20. **Write a note on Auditor Appointment by Special Resolution.** - In some cases, a company must pass a special resolution to appoint or reappoint an auditor, especially for companies with specified paid-up capital limits. 21. **What is government audit?** - Government audit refers to the audit of government departments, public sector undertakings, and government agencies to ensure the proper use of public funds. 22. **What is investigation?** - Investigation is a detailed and in-depth examination of records and transactions forspecific purposes such as fraud detection. 23. **What is EDP audit?** - EDP audit is the audit of the systems and controls in place for electronic data processing to ensure data accuracy, security, and reliability. 24. **What is accounting?** - Accounting is the process of recording, classifying, summarizing, and reporting financial transactions to provide useful information for decision-making. 25. **What do trading transactions include?** - Trading transactions include the buying and selling of goods or services. 26. **Mention any two ledgers that come under scrutiny of the auditor.** - 1) General Ledger, 2) Sales Ledger. 27. **Expand the terms CAG and NFRA.**- CAG: Comptroller and Auditor General, NFRA: National Financial Reporting Authority. 28. **What is cash audit?** - Cash audit is the examination of cash transactions, cash book, and cash balances to ensure accuracy and proper control over cash handling. 29. **What are the types of CAATs?** - 1) Data analysis software, 2) Test data. 30. **Write about the Green Audit.** - Green audit is an examination of the impact of an organization's activities on the environment and its compliance with environmental laws and regulations. 31. **What are the points involved in the verification of assets?** - 1) Existence, 2) Ownership, 3) Valuation, 4) Presentation in financial statements.32. **What are reserves and provisions?** - Reserves are profits set aside for future needs, while provisions are amounts set aside for known liabilities or losses. 33. **What is meant by depreciation?** - Depreciation is the reduction in the value of an asset over time due to wear and tear or obsolescence. 34. **What are the good qualities of an Auditor?** - Independence, objectivity, integrity, and professionalism. 35. **What are the elements of an Audit report?** - 1) Title, 2) Scope, 3) Opinion, 4) Signature of the auditor. 36. **State the kinds of Audit report.** - 1) Unqualified report, 2) Qualified report, 3) Adverse report, 4) Disclaimer of opinion.37. **Give the meaning of EDP.** - EDP stands for Electronic Data Processing, referring to the use of computers for processing financial and operational data. 38. **What is the audit approach in an EDP environment?** - The audit approach in an EDP environment focuses on evaluating controls over the IT systems and data accuracy. 39. **What is the main object of auditing?** - The main objective of auditing is to provide an independent opinion on the fairness and accuracy of financial statements. AO. **Ildentify the flexible Audit Programme.** - A flexible audit program is adaptable and allows modifications based on the audit's progress and findings. 41. **How will you vouch the Insurance claim?**- To vouch the insurance claim, the auditor should verify the claim amount, supporting documents, and the insurance policy. 42. **Define Audit Evidence.** - Audit evidence refers to the information an auditor gathers to draw conclusions and provide an opinion on the financial statements. 43. **What is the necessity for providing depreciation?** - Depreciation is necessary to allocate the cost of an asset over its useful life and reflect its declining value over time. 44. **Mention the concept of Depletion method.** - The depletion method is used to allocate the cost of natural resources like minerals, oil, or gas as they are extracted or used up. 45. **What do you mean by Auditor’s Report?** - The auditor's report is a formal statement issued by an auditor, expressing an opinion on the accuracyand fairness of a company’s financial statements. **46. Write a short note on Auditor's lien?** An auditor's lien refers to the right of the auditor to retain the client's books and documents until the auditor’s fee is paid. **47. What is Test data in EDP?** Test data in Electronic Data Processing (EDP) refers to a set of input data used to test whether a computer program functions correctly. **A8. Give the Output Devices in Computer?** Output devices include monitors, printers, and speakers. **49. Define the term ‘Internal Check’?** Internal check is an arrangement of duties among staff in such a way that the work of one person is automatically checked by another to prevent errors and frauds. **50. What are Clerical Errors?**Clerical errors are mistakes made in routine office work, such as misposting, totaling errors, or duplication. **51. What do you understand by routine checking? xk Routine checking involves verifying the arithmetical accuracy of entries in accounting records. **52. What is Mechanized Accounting?** Mechanized accounting refers to the use of machines or computers for processing financial transactions. **53. What are the factors to be considered while determining the amount of depreciation?** Factors include the cost of the asset, its useful life, the scrap value, and the method of depreciation. **54. Who is the first Auditor of a company?** The first auditor of a company is appointed by the Board of Directors within one month of its incorporation.**55. Mention the meaning of Audit of Software?** Audit of software refers to the examination of software programs to ensure they are functioning as intended and comply with legal requirements. **56. Write short note on ‘EDP Environment’?** An EDP environment refers to the computerized processing of data, typically involving the use of systems like computers, software, and networks for business operations. **57. How will you vouch the Bill Receivable?** Vouching of bills receivable involves checking records, verifying the terms of the agreement, and ensuring proper accounting entries. **58. Identify the concept of Audit Note Book?* * An audit note book is used by auditors to record important points and observations made during the audit process. **59, What do you mean by Special auditor?** A special auditor is appointed to conduct an audit of specific areas of an organization, often in response to specific concerns or legal requirements. **60. Write a short note on remuneration of auditor? kk The remuneration of the auditor is fixed by the shareholders or the Board of Directors, and it is based on the scope of the work and time involved. **61. What is Internal control in EDP?** Internal control in EDP refers to the measures and systems put in place to ensure the integrity, accuracy, and security of data processed electronically. **62. Write any two aims of an internal audit?** -. To detect and prevent fraud. -. To improve the efficiency of internal processes. **63. Identify the uses of reserve fund?** Reserve funds are used for future contingencies,expansion, or to cover unexpected losses. **64. Write short note on branch audit?** A branch audit is an audit conducted at a company’s branch office to ensure that its financial statements and transactions are accurate. **65. What is an audit programme?** An audit programme is a detailed plan outlining the steps and procedures to be followed during an audit. **66. Define the unacceptable voucher?** An unacceptable voucher is one that lacks proper authorization, documentation, or does not comply with accounting policies. **67. What is depreciation?** Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. **68. What is a voucher?** A voucher is a document that serves as evidence fora business transaction. **69. Importance of vouching?** Vouching is important to verify the authenticity and accuracy of transactions recorded in the books of accounts. **70. Who is Cost auditor?** A cost auditor is a professional who audits the cost accounting records of an organization. **71, State the meaning of Audit of ledger?** Audit of ledger involves checking the ledger accounts to ensure the accuracy of balances and transactions recorded. **72. Who appoints the auditors to fill the casual vacancies?** The Board of Directors appoints auditors to fill casual vacancies, except in the case of resignation, where shareholders must approve. **73, What is auditing through computer?**Auditing through computers involves using software and tools to perform auditing tasks and analyze data. **74, What do you mean by valuation?** Valuation is the process of determining the worth of assets or liabilities. **75. Meaning of computer system audit?** A computer system audit is the evaluation of the hardware, software, and networks in a system to ensure compliance with policies and security standards. **76. What is interim audit?** An interim audit is conducted during the financial year, before the final audit, to check the interim financial records. **77. Explain the term provision?** Provision refers to the accounting estimate set aside for a known liability or expense, the amount ofwhich is uncertain. **78. What is continuous audit?** A continuous audit is an ongoing audit process where the auditor continuously checks the accounts throughout the financial year. **79, What is sinking fund?** A sinking fund is a reserve set aside to repay debts or replace an asset over time. **80. What is collateral voucher? (Some eg)** A collateral voucher supports a transaction and may be secondary, such as purchase orders or delivery receipts. **81. What is Test Checking?** Test checking involves checking a sample of transactions instead of all transactions to draw conclusions about the entire set. **82. Distinguish between verification and valuation.**Verification involves checking the existence and ownership of assets, while valuation assesses their correct value. **83. Identify the concept of Audit Note Book.** An audit note book records observations, discussions, and important points noted by the auditor during the audit process.