Thursday, 15 December 2016

mf0013 smu mba fall 2016 (jan/feb 2017 exam) IIIrd sem assignment

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DRIVE:          fall 2016
PROGRAM: MBA
SEMESTER: 3
SUBJECT CODE & NAME: MF0013 & INTERNAL AUDIT AND CONTROL
BK ID: B1733
CREDITS: 4
MARKS: 60

Q.1: Distinguish between Government audit and Specific audit. Explain types of Government and Specific Audit?
Distinguish between Government audit and Specific audit. (3 Marks)
Explain types of Government and Specific Audit? (7 Marks)
Ans:

Distinguish between Government audit and Specific audit:
Government audit is yet another variety of general audit. Government audit is a particular variety of external audit done by the CAG, concerned exclusively with government activity.

A specific


Q.2: Write the similarity and dissimilarity of Internal and External Audit? Explain the Co- operation between external and internal auditor.
Similarity and Dissimilarity of Internal and External Audit (5 Marks)
Co-operation between external and internal Auditor (5 Marks)
Ans:

Similarity and Dissimilarity of Internal and External Audit:
Similarity
1. Evaluation of the internal control systems of the entity.
2. Correctness of accounting documentation, bookkeeping and financial reporting.
3. Verification of assets.
There is a

Q.3: The audit firm follows certain policies and procedures. Explain the quality control policies adopted by an audit firm.
Explanation of all the 12 points under audit firm (10 Marks)
Ans:

Explanation of all the 12 points under audit firm:
1. The audit firm should ensure that all audits comply with auditing standards, and accordingly the firm has to design and implement quality control policies and procedures.
2. The quality

Q.4:     List and explain the elements of Internal Control. Explain the basic principles of governing internal control
Explanation of Elements of Internal Control (5 Marks)
Basic principles of governing internal control (5 Marks)
Ans:
Elements of Internal Control:

Internal control systems operate at different levels of effectiveness. Determining whether a particular internal control system is effective is a judgement resulting from an assessment of whether the five components - Control Environment, Risk Assessment, Control Activities, Information and Communication,


Q.5: Discuss the specific problems of Electronic Data Processing (EDP) relating to internal control.
Explanation of all problems of EDP  (10 Marks)
Ans:

Explanation of all problems of EDP:  
The implementation of internal control in an EDP system, give rise to the following problems:
(a)


Q.6: Explain the factors for having the effective internal control system for a bank.
Explanation of various aspects of having the effective internal control system (10 Marks)
Ans:

Basic considerations for an effective internal control system for cash and bank transactions are:
1.      Independent

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