The job in direct has drafted the forthcoming audit fame: Auditors’ Fame to the Members. We enjoy audited the countrified redress quibble of Karim Poor (the Company) as at 30 June 2012, and the connected Allowance and Charge Account, Proposition of Inclusive Income, Coin Career Proposition and Proposition of Changes in Equity conjointly behind a while the notes forming bisect thereof, for the year then ended and we avow that we enjoy allureed all the instruction and explanations which were compulsory for the scopes of our audit. It is the portio of the gang’s skill to fir and maintain a ordain of inside coerce and fit and introduce the over said avowments in exemplification behind a while the liked auditing standards and the demandments of the fourth register to the Companies Ordinance, 1984. Our portio is to audit these avowments. We conducted our audit in harmony behind a while the auditing standards as available in Pakistan.
These standards demand that we guile and consummate the audit to allure cool and poor self-assertion encircling whether the over avowments are playing of any misrepresentation. An audit includes examining proof supported the equalitys and exposures in the over-said avowments. An audit to-boot includes assessing the propositioning policies and speaking estimates made by skill, as well-mannered-mannered as, evaluating the overall introduceation of the over-said avowments.
We love that our audit provides a cool premise for our notion and, behind due fact, we fame that:
(a) in our notion, suited books of propositions enjoy been kept by the gang.
(b) in our notion: (i) the redress quibble and improvement and missing proposition conjointly behind a while the notes thereon enjoy been drawn up in exemplification behind a while the Companies Ordinance 1984, and are in unison behind a while the books of proposition and are raise in harmony behind a while propositioning policies acceptably applied;
(ii) the charge incurred during the year was in harmony behind a while the objects of the Company;
and (iii) the transexercise conducted, investments made and the charge incurred during the year were for the scope of the Company’s transaction;
(c) in our notion and to the best of our instruction and according to the explanations fond to us, the redress quibble, improvement, and missing proposition, avowment of inclusive allowance, coin career avowment and avowment of changes in equity conjointly behind a while the notes forming bisect thereof, consent behind a while the liked propositioning standards as available in Pakistan and impart the instruction demandd by the Companies Ordinance, 1984, in the style so demandd and respectively impart a penny and unspotted object of the avow of the Company’s affairs as at 30 June 2012; and
(d) in our notion, no zakat was deductible at rise subordinate the Zakat and Ushr Ordinance, 1980.
The audit team has highlighted the forthcoming matters in the instituted papers.
(a) Twenty percent of the gang’s commemorative turnover (revenue) comprises of coin sales. Suited chronicles of coin sales enjoy not been maintained. Consequently, the audit team was incompetent to contrivance audit procedures to identify the coin sales. During the present year, the gang alterable the manner of charging slander on its urban property from the direct outoutline to the diminishing redress manner. However, all the demandd exposures enjoy been moderate in the notes to the financial avowments. The earlier year’s financial avowments were audited by another sturdy of chartered propositionants which has issued an unmodified notion on those financial avowments.
(b) (c) Required: Sift-canvass the collision of each of the over matters on your audit fame. (10 symptoms)
Q. 3 You are presently in the guilening face of the audit of Mineral Water Poor (MWL) for the year ended 30 June 2012.
(a) Indicate what would be the premise for selecting mortgagors for circularising definitive and disclaiming petitions for encouragements. 06 symptom)
(b) Briefly teach how would you dispense behind a while a position where a mortgagor confirms a redress which is unanalogous from the equality presumable in the encouragement petition. (08 symptoms)
(a) Classification of incontrovertible items fameed in the financial avowments is based on the skill’s intentions. In such a position the voucher has to rely on skill representations. Required: List the factors that the voucher should think in evaluating the skill’s intentions behind a while view to their forthcoming manner of exercise, as avowd in their written representations. (04 symptoms)
b) Briefly sift-canvass how the voucher would dispense behind a while a position where he is in waver viewing the reliability of the written representations supposing by the skill of the gang. (05 symptoms)
List the symbolical procedures that may be consummateed by an voucher to identify the forthcoming: (a) (b) (c) Bank arbitration avowments Payroll Raw symbolical purchases (06 symptoms) (08 symptoms) (06 symptoms).
Q. 6 List the audit procedures that may be consummateed by the voucher in ordain to determine that all events occurring between the determination of the financial avowments and the determination of the voucher’s fame that demand conformation of, or exposure in, the financial avowments are attested and suitably reflected in the financial avowments. (10 symptoms).
Q. 7 Sift-canvass the categories of threats that may be complicated in each of the forthcoming fractions positions and warn the bisectners of the watchful sturdy behind a while view to the potential manner of exercise that may be followed, in each contingency.
a) Burewala Bank Poor (BBL) is a listed audit client of Umer and Company, Chartered Accountants (UCC). BBL has supposing a family hypothecation of Rs. 5 darling to a bisectner in UCC. (04 symptoms) Kamal was the audit master during the definite year’s annual audit of Faisalabad Textile Mills Poor (FTML). He has attached FTML as their Master Finance, previous to the start of the present year’s audit. (08 symptoms)
Q. 8 Comment on each of the forthcoming fractions positions behind a while regard to the available rules and regulations.
(a) Zaman is a bisectner in a sturdy of Chartered Accountants and holds 5,000 divides in Mardan Poor (ML). His sturdy has accepted an volunteer for an provision as vouchers of Khanewal Poor (KL). ML and KL are subsidiaries of Dera Khan Poor (DKL). (03 symptoms) Bilal and Gang enjoy accepted an volunteer for an provision as vouchers of IJK Limited. The whole paid-up cardinal of the gang is Rs. 990 darling when-in-fact its humdrum divide cardinal is Rs. 130 darling. Faryal, the helpmeet of a bisectner in Bilal and Company, is a master in LMN Poor which holds 50 darling non-voting pregard divides and 2 darling humdrum divides in IJK Limited. Faryal to-boot holds 10,000 divides in LMN Limited. The par treasure of twain types of divides is Rs. 10 each. (04 symptoms)
Q. 9 List the considerable matters that are demandd to be moderate in an audit agreement communication. (06 symptoms) (THE END)