FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION – 2021
FOR RECRUITMENT TO POST IN BS – 17
UNDER THE FEDERAL GOVERNMENT
ACCOUNTANCY AND AUDITING, PAPER II
TIME ALLOWED: THREE HOURS
PART – I (MCQs): MAXIMUM 30 MINUTES
PART – I (MCQs): MAXIMUM MARKS = 20
PART – II MAXIMUM MARKS = 80
NOTE:
(i) Part – II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY FOUR questions from PART – II by selecting at least ONE question from EACH section. ALL questions carry EQUAL marks.
(iii) All the parts (if any) of each Question must be attempted at one place instead of at different places.
(iv) Candidate must write Q. No. in the Answer Book in Accordance with Q. No. in the Q. Paper.
(v) No Page / Space be left blank between the answers. All the blank pages of Answer Book must be crossed.
(iv) Extra attempt of any question or any part of the attempted question will not be considered.
PART II
SECTION – I (AUDITING)
Q. 2. Explain in detail why there is an established need for auditing services for each of the following organizations.(5 marks each) (20)
(a)Publicly owned corporations(b) Privately owned corporations(c) State and local government agencies(d) Partnerships
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. (20)
SECTION — II (BUSINESS TAXATION)
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 year.
Q6. From the following data, calculate the tax payable by Mr. Sohail Aslam for the year ended 30thJune 2020:(20)
(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 expense 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 institutions under section-61 Rs. 500,000.
(i)Amount paid for approved pension scheme during the year Rs. 190,000.
(j)Share if listed company purchased Rs. 10,00,000
SECTION – III (BUSINESS STUDIES AND FINANCE)
Q7. (a) Give hypothetical journal transactions that will have the following types of effects on the elements of balance sheet equation (assets = liabilities + owner’ sequity). (10)
(b) Using the information given in the following tables, complete the balance sheet given underneath and write it down in answer book provided. Show there the required calculations as well.
Table
| Long term Debt to equity | 0.5 to 1 |
|---|---|
| Total assets turnover | 205 times |
| Average Collection period (assume 360 days year and all sales on credit) | 18 days |
| Inventory turnover | 9 times |
| Gross profit Margin | 10% |
| Acid-test ratio | 1 to 1 |
Balance Sheet
| Cash | $39 | Notes and notes payable | $100,000 |
|---|---|---|---|
| Accounts Receivable | Long-term Debt | ||
| Inventory | Common Stock | ||
| Plant and Equipment | Retained Earnings | ||
| Total Assets | $ | Total liabilities and shareholder’s equity | $ |
Q8. Explain in detail the factors which are related to the risk structure of interest rates. (20)
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