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  • Test 1 Chapter 1 (14-04-23)

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    Hassan Tanveer
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    The document appears to be a practice exam for an accounting and finance certification. It contains 6 multiple choice questions related to audit and assurance. The questions cover topics like: 1. Requirements for cost audit under the Companies Act 2017 2. Responsibilities of management and those charged with governance in an audit 3. Differences between assurance and non-assurance engagements 4. Procedure for shareholders to request a change in auditors 5. Compliance with auditor appointment requirements under the Companies Act 2017. The questions address common situations auditors may encounter and help examine understanding of audit and corporate governance principles.

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    Test 1 Chapter 1 (14-04-23)

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    The document appears to be a practice exam for an accounting and finance certification. It contains 6 multiple choice questions related to audit and assurance. The questions cover topics like: 1. Requirements for cost audit under the Companies Act 2017 2. Responsibilities of management and those charged with governance in an audit 3. Differences between assurance and non-assurance engagements 4. Procedure for shareholders to request a change in auditors 5. Compliance with auditor appointment requirements under the Companies Act 2017. The questions address common situations auditors may encounter and help examine understanding of audit and corporate governance principles.

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    6 views3 pages

    Test 1 Chapter 1 (14-04-23)

    Uploaded by

    Hassan Tanveer
    The document appears to be a practice exam for an accounting and finance certification. It contains 6 multiple choice questions related to audit and assurance. The questions cover topics like: 1. Requirements for cost audit under the Companies Act 2017 2. Responsibilities of management and those charged with governance in an audit 3. Differences between assurance and non-assurance engagements 4. Procedure for shareholders to request a change in auditors 5. Compliance with auditor appointment requirements under the Companies Act 2017. The questions address common situations auditors may encounter and help examine understanding of audit and corporate governance principles.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    The Professionals’ Academy Of Commerce

    Certificate in Accounting and Finance Stage Examinations

    Chapter-1 Test 1 14.Apr.2022

    Section: (Sir ANC) 30 marks – 55mins

    Audit and Assurance


    Q.1 In the light of Companies Act 2017, describe the requirements for the cost audit and the person
    authorized to conduct it. (03)

    Q.2 You are the audit manager of XYZ Limited, Mr. A joined the firm recently and the firm has
    accepted the audit engagement of LMN Limited a public company, Mr. A is also working on the
    audit of LMN Limited the partner of your firm advised you to explain the general and audit
    relatedresponsibilities of the management and TCWG of LMN Limited to Mr. A. (03)

    Q.3 Alpha limited (AL) has appointed your firm for audit purpose. Mr. Shahzain who is the
    directorof AL is expecting you to provide absolute assurance by conducting the audit.
    Required: Give your opinion on the requirement of the director of AL (05)

    Q.4 You are the qualified Chartered Accountant, and currently working at an auditing firm named as
    SUNDAY Limited. Your friend MR. RAMZAN asked for your advice to explain to him the elements
    that differentiate the assurance engagement from non-assurance engagement.
    Required: Guide your friend regarding the difference by enlisting them. (04)

    Q.5 The board of directors of Green Limited (GL) intends to re-appoint the existing auditor for the next
    year. However, Haider, a shareholder of the company, wants to appoint a different auditor.
    Required: Briefly explain the procedure that Haider should follow. Also state the responsibilities of
    GL in this regard. (06)

    Q.6 Justify giving reasons whether the appointment of auditors in the following cases is in compliance
    with the requirements of Companies Act, 2017
    (a) Soniya and Company, Chartered Accountants (SC) has received an offer for appointment as
    the auditor of Karachi Electrics Limited (KEL). On the request of one of the partners of SC, KEL
    has allowed him to pay his last month’s electricity bill amounting to Rs. 300,000 in monthly
    installments of Rs. 50,000each. (03)

    (b) Omar (Private) Limited (OL) has a paid-up capital of Rs. 2.5 million. Till recently, it was a
    wholly owned subsidiary of Hussnain Limited (HL). Recently HL has disposed of 60% of its
    holding in OL to Neha Enterprises (NE), a partnership firm. All the partners in NE are on the
    Board of Directors of HL. OL intends to appoint Mr.Zuhaib as its auditor. Mr. Zuhaib is an MBA
    and his brother is also a partner in NE. (03)

    (c) Aleeha and Company, Chartered Accountants has received an offer for appointment as
    auditors of Royal Bank Limited (RBL). Hamza is a partner in Aleeha and Company. He has
    obtained a personal finance of Rs. 670,000 from RBL and
    also holds RBL’s credit card. The outstanding balance on his credit card is Rs. 100,000. (03)

    (The End)
    (d)(d)

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