AUDITING 2004 (REGULAR)
Time : 3 Hours Max. Marks:100
Instructions: Attempt three questions from section A, including Question No. 1 which is compulsory. Both questions from section- B.
1.a) Draft a qualified audit report for the shareholders of Noman Cement Factory Ltd Karachi for the year ended as on 31.12.2003 (10)
b) State whether the following are true of false: (10)
(i) An auditor has to certify the correctness of the books of accounts.
(ii) Auditor’s report is not placed In Annual General Meeting.
(iii) Where Auditing ends Accounting begins.
(iv) An Auditor cannot be changed from year to year.
(v) External auditor is a permanent employee of the company.
(vi) Investigation is legally compulsory.
(vii) An Auditor Programme is a written scheme prepared by the Accountant.
(viii) Audit working papers are not the property of the auditor.
(ix) All the profits of a company are called Divisible Profit.
(x) There is no difference between Auditing and Investigation,
2. a) Define Auditing. (05+1 5)
b) Explain Rights, Duties and Liabilities of a company auditor.
3. a) Define Audit Programme. (05)
b) Explain different types of Audit Programme. (15)
4. Differentiate between the following: (20)
(a) Annual Audit and Continuous Audit.
(b) Government Audit and Private Audit.
5. Name the Basic Audit Techniques and explain in detail any three of them. (20)
6. a) Differentiate between Audit and Investigation (06)
b) Explain the procedure of investigation if a person wants to purchase a running business. (14)
7. a) What are the advantages of Audit? (10+10)
b) What the preliminary to the Comment of a Company Audit?
8. What do you mean by Self assessment scheme in Income Tax. Write its main feature.
Write short notes on any three of the following: (15)
(i) C.B.R. (ii) Income Tax Officer
(iii) Registered firm (iv) Appellate Tribunal.
9. Arif Raza is working in a private firm. He supplied the following details for the income year ended on June 30, 2004
(i) Salary Rs.20,000 per month in the pay scale 10,000- 500-25,000.
(ii) House rent 50% of Basic Salary.
(iii) Conveyance Rs.1,000 per month.
(iv) Receipted medical expense Rs.8,000.
(v) Utility allowance Rs.600 per month.
(vi) Cost of living allowance 10% of basic pay per month.
(vii) He spent Rs.2.000 on entertainment which was reimbursed to him.
(viii) Traveling allowance Rs.10,000.
(ix) Share of profit from registered firm Rs.15,000.
(x) Received a Sum of Rs.20000 for delivering lecture.
(xi) Agricultural income Rs,50,000.
(xii) He received cash award of Rs.20,J00 to boost up the sales of his firm.
(xiii) Zakat was deducted Rs.10,000. (25)
Required: Compute total and taxable income of Arif Raza. Their finest branches into which they were pouring their www.cheephomeworkhelp.com young life.