Commercial Law and Preliminaries of Auditing Question Paper 2014 | WBCHSE | Class 11

Commercial Law and Preliminaries of Auditing – 2014

PART – A

Commercial Law

Group – A

1. Answer the following questions: [1×12=12]

Choose the correct answer:

(i) When an offer is accepted, it is termed as –

(a) Consideration

(b) Agreement

(c) Acceptance

(d) None of these

(ii) The Indian Contract Act came into force in –

(a) 1870

(b) 1872

(c) 1932

(d) 1972

(iii) A contract which cannot be enforced in court in court of law, because of some technical defect, is called –

(a) void contract

(b) voidable contract

(c) unenforceable contract

(d) quasi contract

(iv) Mental acceptance not evidenced by words or conduct, in the eye of law is –

(a) acceptance

(b) not acceptance

(c) voidable

(d) illegal

(v) A contract by a minor is –

(a) legal

(b) illegal

(c) void ab initio

(d) voidable

(vi) Consideration must be –

(a) real

(b) proper

(c) unimaginary

(d) all of these

(vii) Charging of high price or high interest rate is –

(a) coercion

(b) undue influence

(c) fraud

(d) none of these

(viii) According to Sale of Goods Act, which of the following is included in goods?

(a) Land, building

(b) Actionable claims

(c) Money

(d) Stock, shares

(ix) Goods in the possession and the ownership of the seller at the time of sale are called –

(a) contingent goods

(b) existing goods

(c) future goods

(d) none of these

(x) Agreement to sale is –

(a) executed contract

(b) executor contract

(c) both (a) and (b)

(d) none of these

(xi) As per Sale of Goods act, 1930, breach of warranty –

(a) Gives right to a claim for damages

(b) Gives right to reject the goods

(c) Treats the contract as cancelled

(d) All of these

(xii) A sold goods to B. Before delivery of the goods to B, some of the goods were damaged in the warehouse. This loss will be borne by –

(a) Mr. A

(b) Mr. B

(c) warehouse

(d) government

Group – B

2. Answer the following questions (Alternatives are to be noted) [1×6=6]

(i) Define law.

(ii) what is an implied contract?

Or, What do you mean by quasi contract?

(iii) Give two examples of voidable agreement.

(iv) “Past consideration is no consideration.” Comment.

Or, Mention two instances where undue influence may be present.

(v) Give an example an example of contingent goods.

Or, Define condition under the Sales of Goods Act, 1930.

(vi) When an agreement to sell becomes a sale?

Group – C

3. Answer the following questions (Alternatives are to be noted): [4×4=16]

(i) Discuss the sources of Indian Commercial Law.

(ii) “No consideration, no contract”. – Discuss any two exceptions to this rule.

Or, Distinguish between coercion and undue-influence.

(iii) Discuss the implied warranties as per the Sale of Goods Act, 1930.

Or, Discuss the Doctrine of Caveat Emptor.

(iv) “No seller can give the buyer a better title to the goods than he himself has”. – Mention four exceptions to this rule.

Group – D

4. Answer the following questions (Alternatives are to be noted): [6×1=6]

“Every contract is an agreement, but all agreements are not contracts” – Discuss.

Or, Discuss the various rules regarding offer.

PART – B

Preliminaries of Auditing

Group – A

5. Answer the following questions: [1×12=12]

Choose the correct answer:

(i) The word ‘Audit has been derived from the Latin word –

(a) Auditum

(b) Audire

(c) Audum

(d) None of these

(ii) Verification of the correctness of accounts in auditing is the –

(a) primary objective

(b) secondary objective

(c) social objective

(d) none of these

(iii) An auditor appointed as per any statute is called –

(a) Internal auditor

(b) External auditor

(c) Statutory auditor

(d) Cost auditor

(iv) Chartered Accountants Act was introduced in India in the year –

(a) 1950

(b) 1949

(c) 1951

(d) 1948

(v) Statutory Audit is mandatory for which of the following organisation?

(a) Sole proprietorship business

(b) Partnership business

(c) Joint stock company

(d) none of these

(vi) The audit report on State Govt. accounts is submitted to the –

(a) Chief Minister

(b) Finance Minister

(c) Governor

(d) Prime Minister

(vii) The audit which is carried on at the time of admission of a new partner or retirement of any partner of a partnership business, is known as –

(a) Complete audit

(b) Partial audit

(c) Interim audit

(d) Periodical audit

(viii) Which of the folowing is not an objective of Internal Control System?

(a) Safeguarding of assets

(b) Prevention of errors

(c) Acquisition of capital

(d) Quick publication of financial accounts

(ix) The audit of Cash Book only is –

(a) Internal audit

(b) Interim audit

(c) Partial audit

(d) Periodical audit

(x) Internal audit is a part of –

(a) Internal Check System

(b) Internal Control System

(c) both (a) and (b)

(d) none of these

(xi) For which of the following, Internal Control System is more suitable?

(a) Small concerns

(b) Large concerns

(c) both small and large concerns

(d) none of these

(xii) In Internal Check System the work of an employee is –

(a) automatically checked by another

(b) sometimes checked by another

(c) never checked by another

(d) none of these

Group – B

6. Answer the following questions (Alternatives are to be noted): [1 x 6 = 6]

(i) What should be the professional qualification of a company auditor?

(ii) What is environmental audit?

(iii) Furniture purchased for Rs. 50,000 for office use has been debited to Purchase A/c. What type of error is it?

Or, Give an example of compensating error.

(iv) Who conducts Government Audit?

(v) Are Internal Audit and Interim Audit the same? Give anyone reason for your answer.

Or, State an advantage of Management Audit.

(vi) State one important objective of Internal Control System.

Or, Mention one limitation of Internal Check System.

Group – C

7. Answer the following questions (Alternatives are to be noted): [4 x 4 = 16]

(i) “Auditor is not accountant”- Explain in brief.

Or, Distinguish between Accounting and Auditing.

(ii) Discuss the duties of an auditor regarding prevention of errors and frauds.

(iii) Discuss the advantages of Statutory Audit in brief.

Or, Distinguish between Statutory and Non-Statutory Audit.

(iv) State the disadvantages of Periodical Audit from the point of view of auditor.

Group – D

8. Answer the following questions (Alternatives are to be noted): [6 x 1 = 6]

What do you mean by Internal Control System? State its features.

Or, Give an example of Internal Control Questionnaire in respect of sale of goods in a particular organisation.

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