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 led the legal review of the budget 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 evaluated the added 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 framing part thereof, for the year at that point finished and we express that we have gotten all the data and clarifications which were vital for the motivations behind our review. We will compose a custom paper test on Significance of Statistics in Business or on the other hand any comparable subject just for you Request Now It is the obligation of the company’s the executives to build up and keep up an arrangement of inner control and get ready and present the above said explanations in congruity with the affirmed evaluating principles and the necessities of the fourth calendar to the Companies Ordinance, 1984. Our obligation is to review these announcements. We led our review as per the evaluating guidelines as material in Pakistan. These principles necessitate that we design and play out the review to acquire sensible and constrained confirmation about whether the above articulations are liberated from any misquote. A review incorporates looking at proof supporting the sums and exposures in the above said articulations. A review additionally incorporates surveying the bookkeeping strategies and huge appraisals 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 sentiment 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 like to think: (I) the asset report and benefit and misfortune account along with the notes subsequently have been drawn up in congruity with the Companies Ordinance 1984, and are in concurrence with the books of record and are further as per bookkeeping arrangements reliably applied; (ii) the use acquired during the year was in ccordance with the objects of the Company; and (iii) the business directed, 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 asset report, benefit and misfortune account, articulation of far reaching salary, income explanation and proclamation of changes in value along with the notes shaping part thereof, adjust with the endorsed bookkeeping guidelines as relevant in Pakistan and give the data required by the Companies Ordinance, 1984, in the way so required and individually give a valid and reasonable perspective on the condition of the Company’s undertakings as at 30 June 2012; and (d) as we would like to think, no zakat was deductible at source under the Zakat and Ushr Ordinance, 1980. Contracted Accountants Date: 01 September 2012 Required: Identify the mistakes 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 assessed the review working papers of Samarkand Limited (SL). The review group has featured the accompanying issues in the working papers. (a) 20% of the company’s recorded turnover (income) contains money deals. Legitimate records of money deals have not been kept up. Thusly, the review group couldn't configuration review methodology to confirm the money deals. During the present year, the organization changed the technique for charging deterioration on its fixed resources from the straight line to the reducing balance strategy. In any case, all the necessary divulgences have been remembered for the notes to the budget reports. The past year’s budget summaries were examined by another firm of sanctioned bookkeepers which has given an un-adjusted assessment on those fiscal summaries. (b) (c) Required: Discuss the effect of every one of the above issues on your review report. (10 imprints) Q. 3 You are as of now 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 inns 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 remarkable for over 30 days though the equalizations extraordinary for over 90 days have been completely given. Required: (an) Indicate what might be the reason for choosing indebted individuals 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 the sa me as the sum showing up in the affirmation demand. (08 imprint) Q. 4 (a) Classification of specific things revealed in the fiscal summaries depends on the management’s goals. In such a circumstance the inspector needs to depend on the board portrayals. Required: List the elements that the reviewer ought to consider in assessing the management’s goals as to their future game-plan, as expressed in their composed portrayals. (04 imprint) (b) Briefly talk about how the evaluator would manage a circumstance where he is in question with respect to the unwavering quality of the composed portrayals gave by the administration of the organization. (05 imprint) Q. 5 Rundown the meaningful strategies that might be performed by an inspector to confirm the accompanying: (a) (b) (c) Bank compromise explanations Payroll Raw material buys (06 imprints) (08 imprints) (06 imprints) Auditing Page 3 of 3 Q. 6 List the review strategies that might be performed by the reviewer so as to guarantee that all occasions happening between the date of the fiscal summaries and the date of the auditor’s report that require alteration of, or divulgence in, the budget summaries are recognized and suitably reflected in the budget summaries. (10 imprints) Q. 7 Discuss the classes of dangers that might be engaged with every one of the accompanying autonomous circumstances and educate the accomplices with respect to the concerned firm as to the conceivable strategy 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 conceded a house advance of Rs. 5 million to an accomplice in UCC. (04 imprints) Kamal was the review director during the last year’s yearly review of Faisalabad Textile Mills Limited (FTML). He has joined FTML as their Manager Finance, before the beginning of the current year’s review. (08 imprints) (b) Q. 8 Comment on every one of the accompanying autonomous circumstances concerning the relevant standards 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 examiners 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 evaluators of IJK Limited. The all out settled up capital of the organization is Rs. 990 million while its conventional 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 standard offers in IJK Limited. Faryal likewise 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