Pakistan Institute of Public Summer Exam-2021

Finance Accountants [10.June.2020] [02:30 – 05:15 pm]

Additional time – 15 min for Paper Reading

Audit & Assurance (PS) (Application)

AGP | PG | Public Sector
Marks-80 Subjective Duration: 02 Hours 30 Minutes
[Instructions]
 Ensure that the question paper delivered to you is the same, in which you intend to appear.
 Read the instructions given on the title page of Answer Script.
 Start each question from fresh page.

Books Allowed:
 Financial Audit Manual with Appendices
 Audit Working Paper Kit
 Quality Management Framework

Attempt FOUR questions including, Question No. 1 which is compulsory

Q.1. After performing tests of details on individual transactions, selected on the basis of
representative sample, the auditor has got the following results.
Part –A
Book Value Audit Value
Sr. No
(Rs.) (Rs.)
1 20,000 18,000
2 35,000 30,000
3 85,000 53,540
4 13,500 11,225

Part-B
1 2 3
Book Value Audit Value
Sr. No
(Rs.) (Rs.)
1 1,150 1,900
2 194,400 202,400
3 1,230 2,250
Required:
(a) Assume that sampling interval is: 593,043 and Confidence level is 90%, you are 10
required to help the auditor in calculating most likely error in the population,
separately for part A and B.
(b) Assuming basic precision factor to be 2.30, calculate basic precision for A & B. 05

(c) If the approximate value of PGW for A is Rs. 221,360 and Rs. (465,253) for B, 05
calculate Upper Error Limit for A & B.

Contd…….
 (2)

Q.2. What is an audit opinion? Explain different types of opinions with examples. 20

Q.3. Elucidate the importance of neutrality, conflict of interest and independence of audit from 20
executive with examples from DAGP code of ethics.

Q.4. (a) Briefly explain the general standards for Internal Controls to be maintained by any 12
organization.
(b) Enlist the five basic elements that make up a control structure. 08

Q.5. What is qualified audit opinion and under what circumstances auditors are constrained to 20
issue it. Explain with example for each circumstance leading to qualified opinion.

Q.6. Explain but in a concise manner the major contents of Permanent and Planning Files? 20

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