Importance of Statistics in Business Free Essays

The Institute of Chartered Accountants of Pakistan Auditing Intermediate Examination Autumn 2012 Module D Q. 1 5 September 2012 100 imprints †3 hours Additional perusing time †15 minutes Shahrukh and Company, Chartered Accountants, have directed the legal review of the fiscal reports of Karim Limited, a recorded organization, for the year finished 30 June 2012 under the Companies Ordinance, 1984. The activity incharge has drafted the accompanying review report: Auditors’ Report to the Members We have examined the attached monetary record of Karim Limited (the Company) as at 30 June 2012, and the related Income and Expenditure Account, Statement of Comprehensive Income, Cash Flow Statement and Statement of Changes in Equity along with the notes shaping part thereof, for the year at that point finished and we express that we have acquired all the data and clarifications which were fundamental for the reasons for our review. We will compose a custom exposition test on Significance of Statistics in Business or then again any comparable point just for you Request Now It is the obligation of the company’s the executives to build up and keep up an arrangement of interior control and plan and present the above said proclamations in similarity with the affirmed inspecting guidelines and the prerequisites of the fourth calendar to the Companies Ordinance, 1984. Our obligation is to review these announcements. We directed our review as per the examining norms as pertinent in Pakistan. These guidelines necessitate that we design and play out the review to get sensible and constrained confirmation about whether the above explanations are liberated from any error. A review incorporates analyzing proof supporting the sums and divulgences in the above said proclamations. A review additionally incorporates surveying the bookkeeping approaches and huge assessments made by the executives, just as, assessing the general introduction of the above said articulations. We accept that our review gives a sensible premise to our assessment and, after due check, we report that: (an) as we would like to think, legitimate books of records have been stayed with by the. (b) as we would see it: (I) the asset report and benefit and misfortune account along with the notes subsequently have been drawn up in similarity with the Companies Ordinance 1984, and are in concurrence with the books of record and are further as per bookkeeping approaches reliably applied; (ii) the consumption brought about during the year was in ccordance with the objects of the Company; and (iii) the business led, ventures made and the use caused during the year were with the end goal of the Company’s business; (c) as we would like to think and to the best of our data and as indicated by the clarifications given to us, the monetary record, benefit and misfortune account, explanation of far reaching pay, income proclamation and articulation of changes in value along with the notes shaping part thereof, accommodate with the endorsed bookkeeping principles as appropriate in Pakistan and give the data required by the Companies Ordinance, 1984, in the way so required and separately give a valid and reasonable perspective on the condition of the Company’s issues as at 30 June 2012; and (d) as we would see it, no zakat was deductible at source under the Zakat and Ushr Ordinance, 1980. Contracted Accountants Date: 01 September 2012 Required: Identify the blunders in the above report versus a standard legal review report. (Note: You are not required to redraft the report. ) (12 imprints) Auditing Page 2 of 3 Q. 2 As the commitment accomplice, you have evaluated the review working papers of Sa markand Limited (SL). The review group has featured the accompanying issues in the working papers. (a) 20% of the company’s recorded turnover (income) involves money deals. Legitimate records of money deals have not been kept up. Subsequently, the review group couldn't configuration review methods to check the money deals. During the current year, the organization changed the strategy for charging deterioration on its fixed resources from the straight line to the lessening balance technique. Be that as it may, all the necessary exposures have been remembered for the notes to the fiscal reports. The past year’s fiscal summaries were examined by another firm of contracted bookkeepers which has given an un-changed feeling on those budget summaries. (b) (c) Required: Discuss the effect of every one of the above issues on your review report. (10 imprints) Q. 3 You are at present in the arranging period of the review of Mineral Water Limited (MWL) for the year finished 30 June 2012. The accompanying data is accessible to you: Customer Segment Super markets Wholesalers Retailers Five star lodgings No. of Customers 12 65 553 7 Balance 10-20 21-30 31-90 gt; 90 exceptional days †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Rs. in thousand†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 20,014 8,125 5,053 6,396 311 129 14,910 5,078 6,019 3,150 454 209 4,743 1,756 1,798 724 278 187 7,694 2,805 2,793 1,784 201 111 47,361 17,764 15,663 12,054 1,244 636 half arrangement for far fetched obligations has been made by MWL against balances extraordinary for over 30 days while the equalizations remarkable for over 90 days have been completely given. Required: (an) Indicate what might be the reason for choosing account holders for circularizing positive and negative solicitations for affirmations. 06 imprint) (b) Briefly disclose regarding how might you manage a circumstance where an indebted person affirms an equalization which is not quite th e same as the sum showing up in the affirmation demand. (08 imprint) Q. 4 (a) Classification of specific things detailed in the budget reports depends on the management’s aims. In such a circumstance the reviewer needs to depend on the executives portrayals. Required: List the elements that the reviewer ought to consider in assessing the management’s goals with respect to their future game-plan, as expressed in their composed portrayals. (04 imprint) (b) Briefly talk about how the inspector would manage a circumstance where he is in question with respect to the dependability of the composed portrayals gave by the administration of the organization. (05 imprint) Q. 5 Rundown the meaningful methodology that might be performed by an examiner to confirm the accompanying: (a) (b) (c) Bank compromise articulations Payroll Raw material buys (06 imprints) (08 imprints) (06 imprints) Auditing Page 3 of 3 Q. 6 List the review methods that might be performed by the inspector so as to guarantee that all occasions happening between the date of the budget reports and the date of the auditor’s report that require modification of, or exposure in, the fiscal reports are recognized and fittingly reflected in the fiscal reports. (10 imprints) Q. 7 Discuss the classes of dangers that might be engaged with every one of the accompanying autonomous circumstances and instruct the accomplices regarding the concerned firm as to the conceivable game-plan that might be followed, for each situation. a) Burewala Bank Limited (BBL) is a recorded review customer of Umer and Company, Chartered Accountants (UCC). BBL has allowed a house advance of Rs. 5 million to an accomplice in UCC. (04 imprints) Kamal was the review supervisor during the last year’s yearly review of Faisalabad Textile Mills Limited (FTML). He has joined FTML as their Manager Finance, preceding the beginning of the current year’s review. (08 imprints) (b) Q. 8 Comment on every one of the accompanying autonomous circumstances concerning the appropriate guidelines and guidelines. (a) Zaman is an accomplice in a firm of Chartered Accountants and holds 5,000 offers in Mardan Limited (ML). His firm has gotten a proposal for arrangement as evaluators of Khanewal Limited (KL). ML and KL are auxiliaries of Dera Khan Limited (DKL). (03 imprints) Bilal and Company has gotten a proposal for arrangement as examiners of IJK Limited. The absolute settled up capital of the organization is Rs. 990 million though its normal offer capital is Rs. 130 million. Faryal, the spouse of an accomplice in Bilal and Company, is an executive in LMN Limited which holds 50 million non-casting a ballot inclination offers and 2 million customary offers in IJK Limited. Faryal additionally holds 10,000 offers in LMN Limited. The standard estimation of the two sorts of offers is Rs. 10 each. (04 imprints) (b) Q. 9 List the significant issues that are required to be remembered for a review commitment letter. (06 imprints) (THE END) The most effective method to refer to Importance of Statistics in Business, Papers