Q. 2
How an internal control system helps the management in conduct of their business affairs? Explain the difference among internal check, internal audit and internal control.
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FPSC · CSS 2018
Accountancy & Auditing, Paper II
This paper
Accountancy & Auditing · all yearsQ. 2 · How an internal control system…Q. 3 · ABC Company is an audit…Q. 4 · Due to the inherent limitations…Q. 5 · Explain the law regarding the…Q. 6 · What is the scope of…Q. 7 · Information technology is perceived as…Q. 8 · Define financial markets and explain…With this paper← 20182019 →3 hours · questions hide until you reveal them
Not yet checked 1 of 7 questions have not yet been compared with the official paper.
SECTION–A
Q. 3
ABC Company is an audit and assurance firm, which has recently accepted the audit of XYZ. Explain the purpose of auditing financial statement of XYZ and the three elements of audit risk faced by the company.
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Q. 4
Due to the inherent limitations of audit, auditors are only able to offer 'reasonable assurance' over the truth and fairness of the financial statements rather than absolute assurance. Keeping in view the above statement, explain the limitation of audit of financial statement.
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SECTION–B
Q. 5
- (a)Explain the law regarding the definition of business and taxability of business income along with the relevant examples under section (18) of Income Tax Ordinance 2001.
- (b)Mr. Atif is working as Chief accountant of a multi-national company. He received the following income during the tax year 2017. He is a non-filer: Item Amount (Rs.) Basic Salary 12,00,000 Bonus 3,00,000 House Allowance 5,00,000 Conveyance Allowance 2,00,000 Utilities Allowance 1,00,000 Zakat Paid 1,80,000 Capital Gain on Sale of Securities (holding period more than 12 months but less than 24 months) 70,000 Agricultural Income 4,00,000 Required: Calculate his tax payable.
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Q. 6
- (a)What is the scope of sales tax? What is the procedure for transfer of registration and deregistration under Sales Tax Act, 1990?
- (b)Mr Abdul Packages Ltd is a registered manufacturer of candies. Data regarding his business is given below: Item Amount (Rs.) Taxable turnover to registered person 50,00,000 Taxable turnover to non-registered person 18,000 Sales to retailers 50,000 Exempted sales 60,000 Supplies to DTRE registered person 25,000 Zero rated supply 70,000 Supplies donated 1,50,000 Taxable purchases from registered person 2,00,000 Taxable purchases from non-registered person 90,000 Taxable Purchases from wholesaler 60,000 Imported raw material specified in SRO 644(1) 2016 1,00,000 Sales tax paid on PTCL dues 9,000 Sales tax paid on electricity bill 3,000 Required: Calculate the sales tax liability for July 2016
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Section C
Q. 7
- (a)Information technology is perceived as an important source of future economic prosperity and employment growth. Explain the role of information technology in business organisation in Pakistan's scenario.
- (b)You have been hired as a financial advisor to Raheel Abbas. He has received two offers for playing professional basketball and wants to select the best offer, based on considerations of money only. Offer A is a Rs.10m (offer for Rs.2m a year for 5 years). Offer B is a Rs.11m (offer of Rs.1m a year for four years and Rs.7m in year 5). Required: Calculate the present value of each contract by assuming a range of interest rate (8% - 14%). What is your advice regarding the contracts.
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Q. 8
- (a)Define financial markets and explain the features and classification of financial markets.
- (b)ABC Company is considering a new product line to supplement its range line.
- (c)What would be the case if the required rate of return was 10%?
Not yet checked
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About this paper
The 2018 CSS Accountancy & Auditing paper set by the FPSC. Question wording only; questions marked “Not yet checked” have not been compared with the official paper yet.
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