Atif Pedia

SECTION – II

CSS Past Paper Of Accountancy & Auditing-II 2019

FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION-2019
FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ACCOUNTANCY & AUDITING, PAPER-II
PART – II
SECTION – I (AUDITING)

Q. 2. Explain shortly all audit assertions related to class of transactions (revenue and expenses), account balances (assets/liabilities/equities), and presentation & disclosure. (20)
Q. 3. Define and explain different types of audit risks. How these risks are used to manage the audit assignment. (20)
Q. 4. What are Computer Assisted Audit Techniques (CAATs) that can be used in e-commerce environment. (20)

SECTION – II (BUSINESS TAXATION)

Q. 5. (a) Explain the concept of input tax, output tax, zero rated supply, exempt supply and input tax credit.
(b) From the following data, calculate the tax payable by Mr. Aslam for the year ended 30th June 2018:
(i) Salary Rs. 19,500 pm.
(ii) Special pay Rs. 3,000 p.m
(iii) Bonus for the year Rs. 38,000.
(iv) Conveyance allowance Rs. 1,500 p.m
(v) Free accommodation provided by the employer. He was entitled to a house allowance of Rs. 72,000.
(vi) Medical expenses reimbursed by his employer under the contract of employment Rs. 24,000.
(vii) Zakat paid under Zakat Ordinance during the year Rs. 11,300.
(viii) Donation to approved charitable institutions under section 61 Rs. 15,000.
(ix) Legal expenses during the year Rs. 6,000.
(x) Amount paid for approved pension scheme during the year Rs. 90,000.
(xi) Shares of listed companies purchased Rs. 6,000. (10) (10) (20)
Q. 6. (a) What deductions are not allowed to be deducted before arriving at the taxable profits of a business?
(b) Mr. Mohammad Adil received the following emoluments during the year ended 30th June 2018.
(i) Basic Salary (Scale 55,000-5,000-70,000) Rs.60,000 P.M.
(ii) House rent allowance 25,000 P.M
(iii) Utilities allowance 14,250 P.M
(iv) Medical allowance 10,000 P.M.
(v) Agricultural income 130,000 P.M.
(vi) Payment of Loan installment on 30.06.2018 1,00,000
He claims the following deductions:
(i) Zakat paid 67,428
(ii) Investment in shares 2,25,000 Notes
(i) Mr. Mohammad Adil received an interest free loan of Rs. 12,00,000 from his employer on 01.07.2017.
(ii) His employer has provided him a new car to be used for personal and official purposes. The car costs the employer Rs. 15,00,000. Required. Calculate the tax payable by Mr. Mohammad Adil. (10) (20)

SECTION – III (BUSINESS STUDIES AND FINANCE)

Q. 7. (a) Explain Yield To Maturity (YTM), its calculation, and the procedure used to value bonds that pay interest semiannually.
(b) Joan Messineo borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments.
(i) Calculate the annual, end-of-year loan payment.
(ii) Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments.
(iii) Explain why the interest portion of each payment declines with the passage of time. (8) (12) (20)
Q. 8.  (a) Explain the relationships among financial decisions, return, risk and the firm’s value.
(b) Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $150,000. The company’s board of directors has set a maximum 4-year payback requirement and has set its cost of capital at 9%. The cash inflows associated with the two projects are shown in the following table:

(i) Calculate the payback period for each project.

PART-II

Q. No. 2. Use the IS-LM model to discuss the Neutral effect of monetary expansion in the case of open economy. Distinguish between Keynesian and Classical Views on neutrality of money. (20)

CSS Past Paper of Economics 2019

PART-II

Q. No. 2. Describe the salient features of Nurkse, Ropan and Hirchman theories. Comment on the relevancy of each with reference to Pakistan? (20)
Q. No. 3. Critically examine the surplus labor model presented by Arthur Lewis. Can this model be used to initiate industrial development in Pakistan? (20)
Q. No. 4. Differentiate between the concepts of poverty and income inequality. How can public policy help in alleviating poverty and reducing inequality in a developing country like Pakistan? (20)
Q. No. 5. Explain various types of inflation. To what extent should it be controlled? How can fiscal and monetary policy measures help control inflation in Pakistan? (20)
Q. No. 6. Analyze the role of international trade in the economic development of Pakistan. How might WTO affect the terms of trade in an otherwise free economy? (20)
Q. No. 7. Examine the role of Agriculture Sector in the economic development of Pakistan. Should the country continue investing in it or there exist better options as alternate plans? (20)
Q. No. 8. What are the reasons for the adverse balance of trade in Pakistan? Suggest the possible measures to improve the balance of trade scenario of Pakistan.