AUDITING 2008 (PRIVATE)
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) State whether the following are True or False: . (10)
(i) The Auditor of a Public Limited Co. is appointed by the share holders of the company.
(ii) Misappropriation of goods and Manipulation of accounts are same.
(iii) Professional auditing may be classified as Internal Auditing, Statutory Auditing and Government Auditing.
(iv) Internal Auditor is not employee of the enterprise.
(v) An Auditor in a Sole Tradership is not appointed under any statute.
(vi) Audit work paper includes Account Information and Account verification.
(vii) Audit work papers are arranged and kept in a binder called Audit Work paper File.
(viii) Dividend be paid to registered shareholders.
(ix) Auditor’s opinion was called “Certificate”.
(x) Audit report should be signed by the Chartered Accountant.
(b) Draft qualified Audit Report for share holders of Yousra Paper Mills Ltd.Karachias on June 30, 2008.
2(a) Define Frauds and explain various types of frauds (10)
(b) Write a detail note on external audit. (10)
3.(a) What are the Audit Working Papers? (06)
(b) Explain purpose & importance of audit working papers.(14)
4.(a) Distinguish between Management Audit & Cost Audit. (10)
(b) Distinguish between Audit techniques and Audit Evidences.
5. What are the Rights and Duties of an auditor as provided under the Companies Ordinance 1984. (20)
6. Define Withholding Income Tax deduction section. (05) (i) 148 (ii) 149 (iii) 231A (iv) 235 (v) 236
7. Mr. Danyal is the employee of MIS. Usman Corporation. He provided following particulars for 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 RslO,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% Leave boots and shoes outside to keep your tent clean www.essaysheaven.com inside.