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PAST PAPER ANALYSIS

AUDITING PAST PAPERS

2021
Q. 2. Explain in detail why there is an established need for auditing services for each of the
following organizations. (5 marks each)

(a) Publicly owned corporations

(b) Privately owned corporations

(c) State and local government agencies

(d) Partnerships (20)

Q. 3. Explain computer audit approaches and also write a detailed note on the characteristics of
Electronic Data Processing (EDP) system. (20)

Q. 4. Write a detailed note on the types of audit and auditors (GAAS).

2020
Q. 2. Why computerized audit is required in the presence of manual audit? Elaborate the

Computerized auditing by application of Computer Assisted Audit Techniques (CAAT).

Q. 3. Define audit and auditing. Comment on the auditor’s (dependence) consideration of

“reasonable assurance” and “True & Fair view” for the financial audit of a corporate entity.

Q. 4. Write notes on any TWO of the followings: (10 marks each)

(a) Audit materiality

(b) Misstatement and Fraud

(c) Test of Control and Substantive Procedures

2019
Q. 2. Explain shortly all audit assertions related to class of transactions (revenue and expenses),

Account balances (assets/liabilities/equities), and presentation & disclosure.

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Q. 3. Define and explain different types of audit risks. How these risks are used to manage the

Audit assignment.

Q. 4. What are Computer Assisted Audit Techniques (CAATs) that can be used in e-commerce?

Environment.

2018
Q. No. 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.

Q. No. 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.

Q. No. 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.

2017
Q. No. 2. What system of Internal check would you recommend for a large manufacturing

company to prevent fraud in connection with the purchase of raw material on credit

basis?

Q. No. 3. A fraud has been committed in a business. Being a Manager of Accounts you are asked

by the authorities to take up investigative measures and steps to extract the fraudulent

matter. Discuss the measures and steps you will take in this regard.

Q. No. 4. What is meant by Auditor's Report? Describe the key characteristics of a good audit

report, along with the significance of Auditor's report to show the transparent picture of

the company.

2016
Q. No. 2. As an Auditor of an entity, during your interim visit you observed that Internal Control
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were not in use throughout the period under Audit. What are the Control Objectives

you would like to consider for your purpose?

Q. No. 3. What is materiality? Discuss materiality in planning and performing an Audit in

relations to ISA-320.

Q. No. 4. Financial Statements of a company are prepared in accordance with International

Financial Reporting Standards. Being an Auditor what consideration would be taken

while planning & performing Audit based on this condition?

2015
Q# 02

(a) Explain the statutory rights and duties of a company auditor.

(b) Explain “Internal controls of an organization”. What are the techniques used

for the evaluation of internal control system? Discuss.

Q#03

(a) “Vouching is the essence of Auditing”. Explain. What special points would you

keep in mind while vouching payments?

(b) What is meant by a continuous audit? Why do you think this is necessary?

2014
Q. No. 4. Explain various types of Audit Reports required by a duly qualified Auditor under the
Companies Ordinance, 1984. First list the names of Audit Reports and later explain the salient
feature governing the above Audit Reports. Along with this, briefly explain the four types of
Audit Reports with expression of Auditor’s opinion. (20)

Q. No. 5. Describe procedures governing verification of the following items: (5 each)

(a) Deferred taxation (b) Investments held (c) Cash in transit (d) Long term liabilities

2013
Q.4. (a) (b) Explain the relationship between desired level of assurance and legal liability of
Auditors? List out five specific quantifiable events that an auditor can verify, and state specific
criteria for evaluating the events. (10)
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Q.5. (a) (b) Distinguish between the responsibility for fraudulent omission and responsibility for
unintentional errors. Elaborate the different types of Audit, under the Companies Act 1984.

2012

Q.4. (a) Which persons are not qualified for appointment as auditor of a company under the
Companies (10) Ordinance 1984? (b) Who fixes the auditor’s remuneration under the Companies
Ordinance 1984? (10)

Q.5. (a) What does the term “Scope of audit” refer to? How would you describe the “Scope of
audit” of a (10) listed company? (b) Why an auditor cannot provide an absolute assurance as a
result of audit? Explain. (10)

2011

Q.6. Define ANY TEN of the following: (2 x 10 = 20)

1. Compliance Audit 2. Standard unqualified opinion 3. Public Company Accounting Oversight

Board 4. Qualified Opinion 5. Adequate disclosure 6. Internal Control 7. Indirect financial
interest 8. Joint closely held investment 9. Audit committee 10. Independence 11. Inspection 12.
Direct financial Interest 13. Ethics Rulings 14. Attest engagement 15. Integrated Audit

TAXATION
2021

Q. 5. (a) According to the income tax ordinance, 2001, what do we mean by Resident and Non-
Resident persons (sections 81-84)? Elaborate on the different types of resident persons.

(b) According to the income tax ordinance, 2001, what do we mean by tax year [section 2(68)].
Elaborate on different kinds of tax years.

Q. 6. From the following data, calculate the tax payable by Mr. Sohail Aslam for the year ended
30th June 2020: (a) Salary Rs. 195,000 p.m. (b) Special pay Rs. 25,000 p.m. (c) Bonus for the
year Rs. 585,000. (d) Conveyance Allowance Rs. 15,000 p.m. (e) Free accommodation provided
by the employer. He was entitled to a house allowance of Rs. 420,000. (f) Medical expenses
reimbursed by his employer under the contract of employment Rs. 24,000. (g) Zakat paid under
the Zakat Ordinance during the year Rs. 48,000. (h) Donation to the approved charitable
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institutions under section-61 Rs. 500,000. (i) Legal expenses during the year Rs. 30,000. (j)
Amount paid for approved pension scheme during the year Rs. 190,000. (k) Shares of listed
companies purchased Rs. 10,00,000.

2020

Q. 5. Elaborate the following fundamental definitions/terminologies as defined under Section 2

of the Income Tax Ordinance 2001.

(a) Heads of Income [Section 11]

(b) Tax Credits [Section 61 to 65]

(c) Capital Gains [Section 37 to 38] (20)

Q. 6. ABC (Pvt) Limited has earned income from business amounting to Rs. 75056000 during
the tax year 2019. It also has a plaza situated in Faisalabad. The rent receivable from plaza
amounts Rs. 47543000. Moreover, Company claims the following deductions (in Rs.):

1. Property repair expenses 4324200

2. Lawyer fee to defend the title of property 6050000

3. Insurance premium of the property 1477500

4. Property tax paid 5422300

5. Tax with held by the tenants @17.5% 8320025

6. Rental income paid to HBFC 3600000

7. Administrative and collection charges 2900000

Required: Calculate Total income and the Tax payable by the Company for the tax year 2019.
The company is a Non-filer.

2019
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Q. 5.

(a) Explain the concept of input tax, output tax, zero rated supply, exempt supply and input tax
credit. (b) From the following data, calculate the tax payable by Mr. Aslam for the year ended
30th June 2018: (i) Salary Rs. 19,500 pm. (ii) Special pay Rs. 3,000 p.m (iii) Bonus for the year
Rs. 38,000 (iv) Conveyance allowance Rs. 1,500 p.m (v) Free accommodation provided by the
employer. He was entitled to a house allowance of Rs. 72,000. (vi) Medical expenses reimbursed
by his employer under the contract of employment Rs. 24,000 (vii) Zakat paid under Zakat
Ordinance during the year Rs. 11,300. (viii) Donation to approved charitable institutions under
section 61 Rs. 15,000. (ix) Legal expenses during the year Rs. 6,000. (x) Amount paid for
approved pension scheme during the year Rs. 90,000. (xi) Shares of listed companies purchased
Rs. 6,000.

Q. 6.

(a) What deductions are not allowed to be deducted before arriving at the taxable profits of a
business?

(b) Mr. Mohammad Adil received the following emoluments during the year ended 30th June
2018.

(i) Basic Salary (Scale 55,000-5,000-70,000) Rs.60,000 P.M. (ii) House rent allowance 25,000
P.M (iii) Utilities allowance 14,250 P.M (iv) Medical allowance 10,000 P.M. (v) Agricultural
income 130,000 P.M. (vi) Payment of Loan installment on 30.06.2018 1,00,000.

He claims the following deductions: (i) Zakat paid 67,428 (ii) Investment in shares 2,25,000
Notes (i) Mr. Mohammad Adil received an interest free loan of Rs. 12,00,000 from his employer
on 01.07.2017. (ii) His employer has provided him a new car to be used for personal and official
purposes. The car costs the employer Rs. 15,00,000. Required. Calculate the tax payable by Mr.
Mohammad Adil.

2018

Q. No. 5.
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(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.

Basic Salary Rs. 12,00,000 ,Bonus 300,000, House Allowance 500,000 ,Conveyance Allowance
200,000 ,Utilities Allowance 100,000, Zakat Paid 180,000, Capital gain on sale of securities
(holding period more than 12 months but less than 24 months) 70,000 ,Agricultural Income
400,000

Required: Calculate his tax payable

Q. No. 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:

Taxable turnover to registered person Rs. 5,000,000, 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 150,000 ,Taxable purchases from registered
person 200,000, Taxable purchases from non-registered person 90,000 ,Taxable Purchases from
wholesaler 60,000, Imported raw material specified in SRO 644(1) 2016 Rs. 100,000, 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

2017

Q.No.5.

(A) Define the concept of sales tax & describe the sales tax act of 1990. Identify the official
positions of Inland revenue officers and their powers.
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(B) Mr. Sartaj is registered under the Sales Tax Act, 1990 as a manufacturer as well as a
commercial importer. He has provided you the following information for the month of February,
2016:

Export sales – manufactured goods 35 million

Local sales of exempt manufactured goods 25 mn

Taxable supplies – manufactured goods 130 mn

Taxable supplies – commercial imports 70mn

Purchases

 Local purchases of raw material from:

Registered person 180mn

Unregistered persons 60 mn

 Commercial imports 50mn

All the above amounts are exclusive of sales tax. Commercial imports have been stated at C&F
value and are subjected to customs duty at the rate of 10%. There was no stock of commercial
imports at the beginning or end of the month. Required: Compute the sales tax liability of Mr.
Sartaj along with input tax to be carried forward (if any) in his sales tax return for the month of
February 2016. (Ignore the effect of minimum value addition in case of commercial imports)

Q. No. 6.

(A) Identify the main features of Income Tax ordinance 2001. Also discuss the exemptions and
tax concessions available to a taxpayer under that ordinance.

(B) Mr. Ahmed is an employee of a company. He has submitted the following information for
the tax year 2016

Basic Salary per annum 340,000, Bonus 56,000, Cost of living allowance 66,000 ,Dearness
allowance 32,000 ,Rent free unfurnished accommodation – annual value 162,000 ,Company
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maintained car for personal and official use, cost of vehicle is. 980,000, Utility allowance
58,000, Leave encashment 31,600 ,Leave Fare Assistance provided every year 22,600, Hotel
bills paid by the company relating to a pleasure trip 28,400 , Employee’s contribution towards
provident fund 30,000, Zakat paid under Zakat and Ushr Ordinance 15,000 Tax deducted by the
company for salary 35,000

Required: Compute the total income, taxable income and tax liability of Mr. Ahmed

2016

Q. No.5.

(a) What is Income from Property? What are possible deduction allowed under Income from
Property, explain in detail?

(b) You are Manager of a Tax Consultant Firm. One of your internee is assigned to prepare an
assessment report of your client. Following is the information provided by client

Basis Salary Rs. 40,000 p.m (30,000-5,000-60,000), Free accommodation facility provided Cost
of motor Vehicle provided for personal use only Rs. 700,000 Concessional loan @8% p.a Rs.
3000,000 whereas the benchmark rate was 10%. Medical Allowance Rs. 50,000 Flying
allowance Rs. 200,000 Agricultural Income Rs. 90,000 Special allowance Rs. 5,000 Dearness
Allowance Rs. 12,000

Required: Calculate the Taxable Income & Tax Payable based on above data

Q. No. 6.

(a) What is Sales Tax? What procedure a person should follow to get himself registered under
Sales Tax Act, 1990? What are conditions under Sales Tax Act, 1990, where registration
becomes compulsory?

(b) Shahid Dairy Products Ltd is registered manufacturer of Ice-Cream. Data regarding its
business for the month of May-2015 is given below.
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1. Sales to registered persons Rs. 300,000 2. Sales to consumer (Including tax) Rs. 150,000 3.
Sales to Non registered person Rs. 100,000 4. Sales to school children during factory visit Rs.
20,000 5. Sales of Dairy products to retailers Rs. 200,000 6. Purchase of Milk & vegetables
without brand name Rs. 70,000 7. Purchase of Milk & vegetables from registered person Rs.
50,000 8. Purchase of cream from non-registered person Rs. 80,000 9. Ice Cream flavour
imported Rs. 30,000 10. Purchase of syrup from wholesaler (used in ice cream) Rs. 18,000
Required: Compute the sales Tax liability of Shahid Dairy Products Ltd for month of May-2015
(Note: Purchase of Milk & Ice cream at Sr. No 6 & 7 is Zero rated)

2015

Q6. (a) “What are the different types of perquisites enjoyed by the salaried individuals? Discuss.

(b) Discuss in detail the tax treatment under the income tax ordinance, 2001 for the following
facilities that are provided by employer to the employees. (i) Entertainment (ii) Loan to
employees (iii) Accommodation (iv) Conveyance

Q7. Compute taxable income of Miss. Faryal for the tax year ended on June 30, 2013 on the (20)
basis of following information:

Basic Salary 600,000, Dearness Allowance 15,000, Bonus 50,000, Project Allowance 7,000,
Entertainment Allowance 5,000, Principal Allowance 25,000, Donation to Shaukat Khanam
Memorial Hospital, Lahore 40,000, Donation to University of the Punjab-Lahore 20,000, Zakat
paid under the zakat and Ushr Ordinance, 1980 50,000, Overseas allowance 30,000, M.Phil
allowance 60,000 ,Gain on sale of shares of Public Company (Sold within 6 Months) 150,000
,Rent from Sublease of property (building) 200,000 ,Income from Property 300,000, Travelling
allowance and Daily allowance (TA/DA) 25,000, Net profit from manufacturing business
100,000 ,Tax deducted at source from salary 30,000, Tax paid on registration of new locally
manufactured motor vehicle 10,000, Efficiency honorarium 18,000, Utilities allowance 20,000.

2014
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Q. No. 7. Describe procedure involved under Universal Self-Assessment Scheme under Income
Tax Law. What checks and balances exist for successful and smooth operation of the above
scheme?

2013 – ALL MUNERICALS

2012

Q.7. Write Short Notes. (4 x 5=20) (a). Income exempted from tax (b). Sales Tax schedule 1, 2
and 3 (c). Sales Tax schedule 4,5 and 6 (d). Capital Value Tax (e). Capital Gain Tax

2011

Q.8. Account for corporate income taxes: explain the effects of these taxes on before-tax profits
and losses?
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BUSINESS FINANCE THEORY

2021
Q. 8. Explain in detail the factors which are related to the risk structure of interest rates.

2020
Q. 7. How many legal forms of Business Entity exist in Pakistan? Explain the features of Joint
Stock Company and its procedure of formation (stages for formation of a Joint Stock Company-
both Public limited and Private Limited companies).

2019
Q. 7. (a) Explain Yield To Maturity (YTM), its calculation, and the procedure used to value
bonds that pay interest semiannually

Q. 8. (a) Explain the relationships among financial decisions, return, risk and the firm’s value.

2018
Q. No. 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.

Q. No. 8. (A) Define financial markets and explain the features and classification of financial
markets.

2017
Q. No. 7. (A) Identify the major barriers that hamper global business in an open economy.

Q. No. 8. (A) Describe the economic systems, also Identify which system is more beneficial for
the economic development of the country.

2016
Q. No. 7. (a) Explain the Contemporary challenges posed by business now a days in Pakistan

Q. No. 8. (a) Define & explain Business Cycle and discuss its implications in detail

2015
Q.No.8. What are Articles and Memorandum of Association? Explain the basic contents of these
documents.

Q9#. Explain the following: (a) Liquidity and effect of short term loans on liquidity (b) Capital
market and its instruments (c) Money market and its instruments (d) Role and functions of
Commercial Banks

2014
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Q. No. 8. You have been invited by management to form a Public Listed Company in Pakistan.
State steps which you will take to implement the above directive. List points in the light of
Companies ordinance 1984 for formation of the above Listed Company. (20)

Q. No. 9. Describe the following terms used in the field of finance in Pakistan. Illustrate your
answer. (a) Bridge Finance (b) NIB modes of financing (c) Quick ratio (d) Inventory turnover

2013
Q.8. (a)Identify three basic forms of business ownerships and state the merits and demerits of
any one of them.

(b) How does a corporation operate? What effective roles can be played by the Board of
Directors and top management in a corporation?

Q.9. Select any Four to describe moderately:- (5 each)

(a). Types of Share Capital (b). Prospects (c). Sinking Fund (d). Issue of Shares at Discount (e).
Memorandum of Association (f). Manufacturing Companies

2012
Q.8. Explain how the typical corporate firm is organized as it relates to the financial management
(20) function.

Q.9. State the provisions of the companies ordinance 1984 regarding:

1. Term of office of first directors of a company. 2. Minimum member of directors of a

company. 3. How the casual vacancy among the directors may be filled up? 4. Under what
circumstances the election of directors may be declared invalid.