B.com Part 2 – Auditing 2007 Regular Paper

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AUDITING 2007 (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.

 

SECTION A

1 .(a) Define ‘Auditing’. Why accounts are audited? (10)

(b) What are the Audit Techniques?  (10)

 

2. What do you mean by Internal Control? Describe the essential features of internal control. (20)

 

3(a) Define Audit Working Papers and describe its objects. (15+5)

(b) Audit working papers are the property of Auditor. Comment.

 

4. Differentiate between the following, (20)

(i) Annual Audit and Continuous Audit

(ii) Government Audit and Management Audit.

(iii) Cost Audit and Financial Audit

 

5. Explain Rights, Duties and Liabilities of a Company Auditor.

 

6.(a) Draft an unqualified audit report for the shareholders of Hamza Textile Mills Ltd. Karachi; for the year ended June 30, 2007. (10)

(b) What do you mean by Audit Evidences? (10)

 

 

SECTION B

7. What do you mean by Self Assessment Scheme in lncome Tax? Write its main features (15)

OR What are the Powers and Duties of Income Tax Officer?

 

8. Mr. Hamza is working in a private firm. He provided the following details for the income year on June 30, 2007 (25)

(i) Salary Rs.15,000 P.M in the pay scale (15,000-1,000-20000)

(ii) 6ons equal to TWO months salary.

(iii) House rent Rs.8,000 P.M

(iv) Medical Allowance Rs.20000 Per Annum

(v) Share of profit from registered firm Rs.25,000.

(vi) Conveyance allowance Rs.1 ,000 P.M

(vii) Entertainment allowance Rs,500 P.M

(viii) Cash prize Rs.20,000.

(ix) Zakat Deducted Rs.3,000.

Required:- Compute Total Income and Taxable of Mr. Hanzala

g �tc #�H�� Income year ended on June 30th 2008. (35)

 

(1) Pay Rs.25,000 per month in the pay scale 20000 — 2,500 — 450O0

(2) Leave encashment 15 days pay.

(3) Bonus equivalent to two months basic Salary.

(4) Conveyance provides by the company for party personal and party business use. Cost of conveyance 0.75 million:.

(5) House rent allowance Rs lO,000 per month.

(6) Received medical allowance Rs.1,000 per month.

(7) Company allowed Rs.1 000 per month for telephone.

(8) Company allowed Rs.1 500 per month for electricity.

(9) Employer paid Rs.40,000 for admission fees for his child re in school.

(10) Tax deducted by the employer Rs.26,280.

(11) Zakat deduction on PLS A/C Rs.2,000.

(12) He has two flats in Karachi Administrative Society. Flat No.1 rented out for Rs.7,500 per month and Tenant deducted & deposited with holding income tax Rs.4,500. Flat No.2. rented out for Rs.8,000 per month.

 

Calculate: (i) Total and Taxable Income

(ii) Tax Liability for the year 2008.

Schedule of Rates of Tax for the Salaried Individuals.

 

Where Taxable Income exceeds Rs.400,000 but does not exceed Rs.500,000. – 3.50%

Where Taxable Income exceeds Rs.500,000 but does not exceed Rs600,000. – 4.50%

Where Taxable Income exceeds Rs.600,000 but does not exceed Rs.700.000. – 6.00% Interest in their writemyessay4me.org/ essay so they will continue reading

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