Ch 12: FORMING AN OPINION & REPORTING — Previous Year Exam Questions (PYQ)
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📚 Compliance Management, Audit & Due Diligence
📖 Ch.12 — FORMING AN OPINION & REPORTING
⭐ V1: Previous Year Question (PYQ)
⚡ Free Mode (Answers Locked)
⏱ Duration: 54 Mins
🎯 Total Marks: 30
Passed at: 12 Marks
Max Attempts: 10
⚖️ Statutory Applicability: AY 2026-27 & Current Institute Curriculum
Answer ALL questions. Working notes / statutory sections must form part of the answers.
📑 Exam Questions
6 Questions • Total 30 Marks1(a): Form of an Opinion
5 Marks
Smith is a Swiss national and also the Managing Director (MD) of Front India
Ltd. The said company had obtained loan from consortium of banks to a tune of
₹ 12,000 crore. There are about 9 banks involved in providing the loan. Loan
was granted in November 2014. The company was regular at its payment of
interest and loan instalment as per agreed terms and conditions of loan agreement
till November 2017. However due to downfall of business, the company could
not pay its interest and loan instalment since November 2017. There were also
reports that the company is irregular at its salary payments to its employees
since December 2018 and the MD is absconding as he fled out of India and
settled in Switzerland.
The banks have decided to approach the court to declare the company as ‘willful
defaulter’. The company has sufficient assets to meet its obligations to the
banks.
The Board is divided on the opinion on the claims made by the consortium of
banks and is contemplating to defend the case in the court in not declaring the
company as a ‘willful defaulter’.
As a Company Secretary in Practice, examine the above situation and advise
the consortium of banks whether they will succeed in their claim before the
Court of Law.
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1(b): Auditing Standard on Forming of Opinion (CSAS-3)
5 Marks
Define the term ‘modified opinion and unmodified opinion’ as per Auditing Standard
3-on forming an opinion’ (CSAS-3) issued by the ICSI.
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2(a): Management Representation Letter
5 Marks
Prepare a brief note on Right to Access Records and Methodology for Diligence
Reporting.
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2(b): Discussion with Management Format of Report
5 Marks
What do you understand by Social Audit ? State the implications of Social
Audit.
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3(a): Discussion with Management Format of Report
5 Marks
S Ltd. appointed M & Co., Chartered Accountants, as statutory auditors for the
financial year 2025-26. During the audit, the statutory auditors have noticed fake
and duplicate expenses reimbursement of ₹ 1.10 crore to the directors of the
company. In this situation, explain the procedure to be adopted by the auditors
for reporting of fraud.
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3(b): Auditing Standard on Forming of Opinion (CSAS-3)
5 Marks
Discuss the accounting principles to be used in preparation and disclosure of
financial reports under SEBI (LODR) Regulations, 2015 by HDB Bank Ltd., a
foreign listed entity, which has listed its Indian Depository Receipts.
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