Accountancy & Auditing, Paper II

What is Internal Control? Explain principles of Internal Control. Also differentiate between Internal Check, Internal Control and Internal Audit.

Define differences between statutory and non-statutory Audit.

Describe the kinds of Financial Markets.

Define types of business combination. Explain key objectives of a Vertical combination.

Mr. Ahmed is an employee of Multinational Company incorporated in Pakistan. His remuneration during the year was as follows: Particulars Rs. (Annual) Basic Pay 600,000 Perquisites 100,000 Cost of Living Allowance 50,000 Utilities, education and traveling allowance 140,000 Expenditure reimbursement 80,000 Medical allowance 90,000 Total 1,060,000 Other information: Company has provided a car for personal and business use to Mr. Ahmed. The cost of the car was Rs. 1,600,000. Required: Compute taxable income and tax liability of Mr. Ahmed.

What are various sources of income chargeable to tax under the head "Income from other source".

Following are result of Salman Associates for preparation of sales tax return for the month of June 2019: Local supplied to registered personal: 75,000,000 Local supplied to unregistered personal: 5,000,000 Total: 80,000,000 Exports: 20,000,000 Sales of Exempt supplied: 3,000,000 Purchases from registered personal: 55,000,000 Purchases from unregistered personal: 25,000,000 Required: Compute sales tax liability of Salman Associates.

Write short notes on the following: