SEMESTER – III

Total Marks: 40
Question Type: Multiple Choice Questions (1 Mark Each)

Sl. No.TopicMarks Distribution
1Law of Partnership1 × 10 = 10
2Company Law1 × 10 = 10
3Audit Procedure1 × 14 = 14
4Routine Checking and Test Checking1 × 6 = 6
Total40 Marks

Part – A : Commercial law

Unit No.Unit & TopicsMarks
Unit – 1LAW OF PARTNERSHIP

a) Definitions: Partnership, Partner, Firm, Essential Elements of Partnership, Mutual Agency, Who can be a Partner, Legal Status of Partnership Firms, Classification of Partnership and Partners, Partnership Deed.

b) Registration of Partnership Firms: Formalities of Registration, Consequences of Non-registration.

c) Rights and Liabilities of Partners: Mutual Rights and Duties u/s 12 & 13, Authority of a Partner, Express and Implied Authority, Limitations of Implied Authority, Alteration of Authority, Authority in Emergency, Liability to Outsiders, Rights and Duties of Partners, Position of a Minor in a Partnership Firm.
10
Unit – 2COMPANY LAW

a) Introduction: Definition of Company, Body Corporate, Essential Features, Types of Companies – Chartered, Statutory, Registered, Private, Public, Government, Holding, Subsidiary and Foreign Companies, Difference between Private and Public Company, Conversion of Private Company into Public Company and Vice Versa.

b) Incorporation of a Company: Formation, Memorandum and Articles of Association, Distinction between Memorandum and Articles, Incorporation, Effect of Registration, Commencement of Business, Alteration of Memorandum and Articles.

c) Prospectus: Public Offer and Private Placement, Definition of Prospectus, Matters to be Stated in Prospectus, Shelf Prospectus, Red-herring Prospectus, Mis-statements in Prospectus.

d) Accounts of Companies: Books of Accounts, Financial Statements, Periodical Financial Statements, Internal Audit, Auditor – Appointment, Eligibility and Auditor’s Report.
10

Part – B : Preliminaries of auditing

Unit No.Unit & TopicsMarks
Unit – 3AUDIT PROCEDURE

a) Preparatory Steps Before Commencement of a New Audit.

b) Preparation by the Auditor: Audit Planning, Audit Programme (Definition, Objectives, Features, Advantages and Limitations), Audit Notebook (Definition, Contents and Advantages), Audit Working Papers (Definition, Contents, Ownership, Protection and Preservation), Audit File (Definition, Types and Contents), Audit Memorandum (Definition and General Contents).
14
Unit – 4ROUTINE CHECKING AND TEST CHECKING

a) Routine Checking: Definition, Scope, Objectives, Advantages and Limitations.

b) Test Checking: Definition, Factors to be Considered Before Test Checking, Advantages, Limitations, Difference between Routine Checking and Test Checking, Transactions Not Suitable for Test Checking.
6
PartsMarks
Part – A (Commercial Law)20
Part – B (Preliminaries of Auditing)20
Grand Total (A + B)40 Marks

SEMESTER – IV

Total Marks: 40

TopicShort Answer Type Questions (2 Marks)Short Answer Type Questions (3 Marks)Descriptive Type Questions (5 Marks)Total Marks
Negotiable Instruments2 × 2 = 42 × 5 = 1014
Law of Insurance2 × 3 = 66
Vouching1 × 2 = 21 × 3 = 31 × 5 = 510
New Branches of Auditing1 × 2 = 21 × 3 = 31 × 5 = 510
Total8 Marks12 Marks20 Marks40 Marks

Part – A : Commercial law

Unit No.Unit & TopicsMarks
Unit – 1NEGOTIABLE INSTRUMENTS

a) Introduction: Concept and Essential Features of Negotiable Instruments, Types of Negotiable Instruments, Promissory Note (Definition and Essential Elements), Bill of Exchange (Definition, Essential Elements and Types), Cheque (Definition, Features and Types), Difference between Promissory Note and Bill of Exchange, Difference between Bill of Exchange and Cheque, Meaning of Holder and Holder in Due Course, Rights of a Holder in Due Course.

b) Acceptance, Negotiation and Endorsement: Meaning of Acceptance, Types of Acceptance, Cases where Acceptance is not Necessary, Time and Place of Presentment for Acceptance, Meaning of Negotiation, Negotiation by Delivery, Negotiation by Endorsement, Who can Negotiate, Meaning and Definition of Endorsement, Effects, Types and Rules regarding Endorsement.
14
Unit – 2LAW OF INSURANCE

a) Introduction: Advantages and Objects of Insurance, Contract of Insurance and its Essential Elements, Types of Insurance, Meaning of Insurer, Insured, Insurance Policy, Risk, Premium and Cover Note, Duties and Rights of Policy Holders, Double Insurance and Reinsurance, Distinction between Double Insurance and Reinsurance.

b) Life Insurance: Definition, Features and Types, Meaning of Surrender Value and Nomination, Difference between Life Insurance and General Insurance, Effect of Suicide.

c) General Insurance: Marine Insurance – Definition, Features and Types; Fire Insurance – Definition, Features and Types.
6

Part – B : Preliminaries of auditing

Unit No.Unit & TopicsMarks
Unit – 3VOUCHING

Definition, Features, Objectives and Importance of Vouching, Factors to be Considered in Vouching, Voucher (Definition, Classification and Features), Comparison between Routine Checking and Vouching, Vouching of Specific Transactions such as Cash Purchases, Cash Sales, Cash Payments, Cash Collections and Loans Taken from Outsiders.
10
Unit – 4NEW BRANCHES OF AUDITING

a) Cost Audit: Definition, Objectives, Advantages and Limitations.

b) Management Audit: Definition, Objectives, Advantages and Limitations.

c) Performance Audit: Definition, Objectives, Advantages and Limitations.

d) Social Audit: Definition, Objectives, Advantages and Limitations.

e) Tax Audit: Definition, Objectives, Persons Mandatorily Subject to Tax Audit under Section 44AB of the Income Tax Act (as per latest Government regulations).
10
PartsMarks
Part – A (Commercial Law)20
Part – B (Preliminaries of Auditing)20
Grand Total (A + B)40 Marks

Marks Summary

SemesterExamination PatternMarks
Semester–IIIMultiple Choice Questions (MCQ)40
Semester–IVShort Answer & Descriptive Questions40
Grand TotalTheory Examination80 Marks