AUDITING 2008 (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) State whether the following are True or False: (10)
(i) Auditor Submits the report before examining the books of accounts.
(ii) Auditor of a Public Limited Company must not be a chartered Accountant.
(iii) Auditor is not responsible for his work to management.
(iv) Government Auditors are working under Accountant and Auditor General of Pakistan.
(v) Voucher is not documentary evidence in support of a transaction.
(vi) In partnership, the appointment of auditor is made by the owners.
(vii) Scanning, Inquiry and observation are audit evidence.
(viii) Audit report should be dated.
(ix) Cost Audit is not compulsory under law.
(x) Auditor is concerned with the examination of financial aspect of accounts.
(b) Draft qualified Audit Report for share holders of Daniyal Usman Printers (Pvt) Ltd. for the year ended June 30, 2008, giving at least three qualifications. (10)
2.(a) . Define Auditing. What are the objectives of audit? (10)
(b) What is meant by Internal Control? List the features of Internal Control. (10)
3.(a) Discuss Audit Programme. (05)
(b) List the various types of audit techniques & explain any three of them. (15)
4. Yousuf Rizwan & Co. is considering the purchase of an established business, What points you would consider on behalf of the purchaser to investigate the affairs of the business (report is not required). (20)
5. What are divisible profits? What should be the guiding principles in determining the divisible profit? (20)
6. Define: (i) Special Tax Year (ii) Perquisites
(iii) Transitional Tax Year (iv) G.S.T (v) Allowances
OR State the powers & functions of FBR. (10)
7. Mr. Abdul Rafay is the employee of MIS. Rahim Asim Ltd. Mr. Abdul Rafay provided following particulars for Income year ended on June 30th 2008. (30)
(1) Pay Rs.60,000 per month in the pay scale 40,000 — 5,000 — 75,000
(2) Bonus equivalent to 45 days basic Salary.
(3) Leave encashment 15 days basic salary.
(4) Company provides a Toyota Car for personal use. Cost of car is Rs.1.5 million.
(5) Company provides accommodation Annual rental Value
(6) Received medical Allowance Rs.2000 per month.
(7) Medical re-imbursement according to the terms of employment Rs.20,000.
(8) Life insurance premium paid by the employer Rs.15,000.
(9) Driver provided by the employer with monthly salary Rs.5000 per month.
(10) Dearness Allowance Rs.3000 per month.
(11) Received Cash gift from Brother Rs.25.000.
(12) Tax deducted by the employer Rs.1,28,700.
(13) Zakat paid under Zakat & Ushr ordinance 1980. Rs.2000.
(14) Mr. Abdul Rafay has one Flat in Gulshan-e-lqbal which he rented out on August 1, 2007 for Rs.10,000 per month. He also received Rs. 1,50,000 as Security deposit.
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.950, 000 but does not exceed Rs.1O.50,000. – 10.00%
Where Taxable Income exceeds Rs.1O,50,000 but does not exceed Rs.12,00,000. – 11.00%
Where Taxable Income exceeds Rs.12,001000 but does not exceed Rs.15,00,000. – 12.50%
Where Taxable Income exceeds Rs.15,00,000 but does not exceed Rs.17100,000. – 14.00%
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