CSS Accounting and Auditing Past Paper 2022

Instructions specific to this paper

• Attempt ONLY FOUR questions from PART-II by selecting TWO questions from EACH SECTION.
• Use of Calculator is allowed.
• Attempt ONLY FOUR questions from PART-II by selecting at least ONE question from EACH

Questions

1. Q. 220 marks

   Define audit planning. What factors should be considered by an auditor in developing an audit plan.

2. Q. 320 marks

   (a) Define an audit program. Give its advantages and disadvantages. (10) (b) What are the purposes/benefits of conducting audit through a fixed audit program? (10)

3. Q. 410 marks

   (a) Define ‘Fraud’ as applied to accounting. What are different types of frauds? (b) How will you detect and prevent the frauds related with embezzlement of cash? (10) (20)

4. Q. 520 marks

   Listed below are five items that may—or may not—require disclosure in the notes that accompany financial statements. (a) Mandella Construction Co. uses the percentage-of-completion method to recognize revenue on long- term construction contracts. This is one of two acceptable methods of accounting for such projects. Over the life of the project, both methods produce the same overall results, but the annual results may differ substantially. (b). One of the most popular artists at Spectacular Comics is leaving the company and going to work for a competitor. (c). Shortly after the balance sheet date, but before the financial statements are issued, one of Coast Foods’s two processing plants was damaged by a tornado. The plant will be out of service for at least three months. (d). The management of Soft Systems believes that the company has developed systems software that will make Windows ® virtually obsolete. If they are correct, the company’s profits could increase by 10- fold or more. (e). College Property Management (CPM) withheld a $500 security deposit from students who, in violation of their lease, kept a dog in their apartment. The students have sued CPM for this amount in small claims court. Required: For each case, explain what, if any, disclosure is required under generally accepted accounting principles. Explain your reasoning.

5. Q. 620 marks

   Discuss ten allowable deductions under the head of “income from business” under section 20 of Income Tax Ordinance 2001.

6. Q. 720 marks

   (a) What is the purpose of financial markets? How can this purpose be accomplished (10) efficiently? (b) Discuss the functions of financial intermediaries. (10)

7. Q. 820 marks

   Why do bonds with long maturities fluctuate more in price than do bonds with short maturities, given the same change in yield to maturity?

Standard FPSC instructions

Printed on this and every CSS paper.

• Part-II is to be attempted on the separate Answer Book.
• All the parts (if any) of each question must be attempted at one place instead of at different places.
• Write Q. No. in the Answer Book in accordance with Q. No. in the question paper.
• No page/space be left blank between the answers. All the blank pages of the Answer Book must be crossed.
• Extra attempt of any question or any part of the attempted question will not be considered.