B.Com II Auditing

Instructions: Attempt THREE questions from Section “A”. Both questions from Section “B”.

SECTION “A”

Q.1. Define Auditing. What are the rights and duties of a Company Auditor? (20)

Q.2. (a) State whether the following are TRUE or FALSE. (10)

i. Auditor of a Sole Proprietorship business must be a Chartered Accountant.
ii. Internal Auditor is a permanent employee of a Company.
iii. An Audit programme is prepared by a Director of a Co.
iv. An Auditor has to certify the correctness of a books of A/C.
v. Cost Audit is Compulsory.
vi. External Auditors are not permanent employee of a co.
vii. Auditing is a critical examination of administrative affair’s of a company.

Q.2. (b) What are the types of Errors and Fraud? (10)

Q.3. What are the preliminaries to the commencement of a Company Audit? Explain in detail? (20)

Q.4. Define Audit Programme. Explain the different types of Audit Programme. (20)

Q.5. Distinguish any THREE of the following: (20)

• Final Audit and Interim Audit
• External Auditor and Internal Auditor
• Audit Working Papers and Audit Programmes
• Internal Check and Internal Control
• Dividend and Divisible Profit.

Q.6. Write short notes on any THREE of the following: (20)

• Computerized Accounts
• Valuation of Inventory
• Audit a Textile
• Audit of Hotels
• Investigation

SECTION “B”

Q.7. Describe the basis of Present Income Tax Laws in Pakistan.

OR

Write short notes on any THREE of the following: (15)

• I.T.O
• Non Resident
• Total and Taxable Income
• Person
• Previous Year

Q.8. Mr. Kareem has supplied the following information for the income year ended on 30th June 2005. (25)

i. Salary Rs. 26,000 per month in the pay scale Rs. 20,000-500-30000
ii. Houses Allowance 45% of basic salary.
iii. Conveyance Rs. 2,000 per month
iv. Medical Allowance Rs. 16,000. His actual expenditure was Rs. 12,000.
v. Share of Profit from a registered firm Rs. 10,000.
vi. Cash prize Rs. 25,000.
vii. Income from agriculture Rs. 50,000.

Required: Compute Total and Taxable Income of Mr. Kareem.

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Fahim Patel is the Content Manager of guesspapers.net. A graduate from Karachi University, he has intensive experience in content production.

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