Pakistan Institute of Public Winter Exam-2022

Finance Accountants [09.Nov.2022] [02:30 – 05:15 pm]

Additional time – 15 min for Paper Reading

Audit & Assurance (PS)

CGA | PMAD | PRAD
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.
 Books are not allowed
 Start each question from fresh page.

Attempt FIVE questions including Q. No. 7 which is compulsory

Q.1 Analytical procedures require a great deal of professional judgment.
(a) Elaborate and explain the term Professional Judgement while conducting a certification 07
audit under the guidelines of Financial Audit Manual issued by DAGP?
(b) Discuss any three of the factors to be considered before deciding to use analytical 08
procedure as a source of audit assurance.

Q.2 (a) What are the basic elements of Standard Audit Report issued by Auditor General of 06
Pakistan? List and define the purpose of each element.
(b) Auditor issues various types of Audit Reports depending on the nature of the
observations. When the Auditor should issue the following types of opinion:
(i) Unqualified Opinion 03
(ii) Qualified Opinion 03
(iii) Disclaimer Opinion 03

Q.3 (a) The Audit Observations should be supported by Audit Evidences which should be 10
sufficient and appropriate, although of various types and Charteristics. List and explain
various types Audit Evidences to be collected by the Audit team.
(b) Audit Evidences obtained by Auditors are often conflicting. You are required to give 05
examples and also highlight procedures, the auditor should adopt to re-evaluate the
conflicting evidences?

Q.4 (a) Why do Auditors require the management representation letter at the completion stage 03
of the audit and whose responsibility is to prepare the representation letter?
(b) You are the Audit in-charge having the responsibility of Certification Audit of the 12
office of The Accountant General, Sindh for the year ended 30th June 2022. In this
regard draft a Management Representation Letter covering the risky areas of audit for
the year ended 30th June 2022.

Contd…
 (2)

Q.5 During the Certification Audit of Accountant General Office. Your Director Audit has
assigned the Audit of Pension:
(i) To conduct an audit, the auditor must ascertain an audit objective first; you are 03
required to write the Audit Objective for the Pension.
(ii) Prepare an Audit procedure for audit of Pension. 12

Q.6 (a) You are the Team leader of the Field Audit Team performing audit of Works 08
Department for the financial year ended 30th June 2022. The responsible officer of your
client tries to bribe, threat or intimidate one of your team members which is against the
Code of Ethics of the DAGP. What steps should be taken to avoid or mitigate the
implications of such threat or intimidation.
(b) What is the purpose of developing a Financial Audit Manual by DAGP and also 07
mention the Legislative basis of the Authority of DAGP to conduct Audits.

Q.7 The Quality Assurance Cycle play a pivotal role in the entire Auditing Cycle and Director 20
General’s Role is critical to it. Highlight the roles and responsibilities of Director General
Audit during entire Audit Cycle at various stages given below:
(i) Planning Stage
(ii) Execution Stage
(iii) Evaluation and Reporting Stage
(iv) Review and Approval of the Audit Reports
(v) Review and Supervise Quality Assurance Tasks

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