ICMA.

MANAGEMENT ACCOUNTING
(AF-401)

Pakistan

Extra Reading Time: 15 Minutes

Writing Time:
02 Hours 30 Minutes

(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)

SEMESTER-4

SPRING (AUGUST) 2014 EXAMINATIONS

Monday, the 25th August 2014
Maximum Marks: 80

Roll No.:

Attempt all questions.

Answers must be neat, relevant and brief.
Use of non-programmable scientific calculators of any model is allowed.
Read the instructions printed inside the top cover of answer script CAREFULLY before attempting the paper.
In marking the question paper, the examiners take into account clarity of exposition, logic of arguments,
effective presentation, language and use of clear diagram/ chart, where appropriate.
DO NOT write your Name, Reg. No. or Roll No., or any irrelevant information inside the answer script.
Question No.1 Multiple Choice Question printed separately, is an integral part of this question paper.
Question Paper must be returned to invigilator before leaving the examination hall.

Answer Script will be provided after lapse of 15 minutes Extra Reading Time (9:45 a.m. or 2:45 p.m. [PST] as the case may be).

Marks
Q. 2

(a)

Following information is extracted from the records of Mega Limited for the year ended
June 30, 2014:
Month
July, 2013
August, 2013
September, 2013
October, 2013
November, 2013
December, 2013
January, 2014
February, 2014
March, 2014
April, 2014
May, 2014
June, 2014

Direct Labour Electricity Cost

(Hours 000)
(Rs. 000)
34
640
30
620
34
620
39
590
42
500
32
530
26
500
26
500
31
530
35
550
43
580
48
680

Required:
Compute variable electricity rate and fixed cost per month under the least square
(simple regression) method carrying formulae:

(x x)(y y)
;
(x x)2

y a bx ;

08

a y bx

Where:
x = independent variable = the level of activity;

y = dependent variable = total cost;

x = average values of x;

y = average values of y;

a = intercept of the line on the Y axis = the fixed cost;

b = gradient of the line = the variable cost per unit of activity;

MA-Aug.2014

1 of 4

PTO

Marks
(b)

Falcon Ltd., has recently introduced flexible budgeting as an integral part of its corporate
planning process. Staff members of company are inexperienced and are reluctant to
prepare the flexible budget. Suppose you have recently been appointed as Senior
Management Accountant and asked to prepare the flexible budget at different capacity
levels.
Following data is available at 50% capacity for the month of July 2014:
Fixed Costs
Salaries, wages and benefits
Rent, rate and taxes
Depreciation
Other administrative expenses

Rs. 000
168
112
140
160
580

Variable Costs
Materials
Labour
Other expenses
Sales at various capacity levels:
Capacity Level (%)
60
75
90
100

480
512
76
1,068
Rs. 000
1,900
2,300
2,750
3,050

Required:

Q. 3

Prepare a flexible budget showing budgeted profit at 60%, 75%, 90% and 100%
capacity.

08

(a)

Benchmarking allows attainable standards to be established, elaborate its advantages.

04

(b)

The Delta Ltd., is a cement manufacturing company and sells a single product, LLM.
The company operates standard costing system and furnished the following data:
Normal Capacity (in machine hours)
Standard machine-hours allowed for units produced
Actual machine-hours worked
Budgeted variable overhead per machine-hour
Budgeted fixed overhead (total)
Actual variable overhead cost
Actual Fixed overhead cost
Variable overhead cost applied to production*
Fixed overhead cost applied to production*
Variable overhead spending variance
Variable overhead efficiency variance
Fixed overhead budget variance
Fixed overhead volume variance
Variable portion of the predetermined overhead rate
Fixed portion of the predetermined overhead rate
Under applied (or over applied) overhead

13,040
?
13,000
Rupees
2
?
28,000
66,000
25,400
?
?
600 U
800 U
?
?
?
?

*Based on standard machine-hours allowed for units produced.

Required:
MA-Aug.2014

Compute the missing figures by calculating necessary variances.

2 of 4

08

Marks
Q. 4

(a)

(b)

What are the similarities between net present value (NPV) and internal rate of return
(IRR) methods of discounted cash flow analysis?

03

M/s. Mexican Ltd., is a manufacturer of sports goods and is proposing to manufacture

new product line. The product line is expected to have 4 years life. You have recently
been appointed as a Management Accountant for this project and have been delegated
the responsibility of preparing the financial evaluation of the proposed investment.
You have been provided with the following information related to the new product line:
Rupees
Sales 9,000 units @ Rs. 32
288,000
Cost of Goods sold:
Labour 40,000 hours @ Rs. 3.50 per hour
140,000
(including fixed costs)
Materials and other variable costs
65,000
Depreciation
45,000
250,000
Less: Closing stock
25,000
225,000
Net profit
63,000
Other data relating to new product line:

Annual sales volume at 9,000 units is expected to be constant over the period of
four years.

Production which was estimated at 10,000 units in the first year would be 9,000
units each in year two and three, and 8,000 units in year four.

Debtors at the end of each year would be 20% of sales during the year and
creditors would be 10% of materials and other variable costs. (The policy of the
company is to collect its 80% of debtors in the current year and remaining in the
next year following the sale and creditors are paid 90% in the year of purchase and
10% in the next year).

Special machinery would be purchased for manufacturing of the new product and
its depreciation will be calculated on the straight line basis. Assume that the
machinery would last for four years and have no terminal scrap value.

Cost of capital of M/s. Mexican Ltd., is 20% per annum.

Required:
Calculate the net present value (NPV) of the product line and state whether the
manufacturing of the new product is worthwhile. Ignore taxation.

Q. 5

(a)

15

Global Manufacturing Company produces and sells two products A and B having
following data for a particular period:
Rs. Per Unit
Product
Particulars
A
B
Sales revenue
5,000 10,000
Material cost (Rs. 100 per Kg.)
1,000
2,500
Labour cost (Rs. 60 per hour)
1,500
3,000
Variable overhead
500
1,000

Required:
(i)

Calculate the following for both the products:

(1) Contribution margin per unit.
(2) Material consumption in kgs per unit.
(3) Labour hours required to produce one unit.
(ii) Which product is more profitable when total sales value is limited?
(iii) Comment on the profitability when production capacity is the limiting factor.
MA-Aug.2014

3 of 4

1
1
1
2
2
PTO

(b)

M/s. Hi Sky Ltd., produces three products, A, B and C. The capacity of Hi Skys plant
is restricted and all products pass through a single process. This process is expected to
be operational for 7 hours per day and can produce 1,600 units of A per hour, 1,800
units of B per hour, and 800 units of C per hour. Conversion costs are Rs. 600, 000
per day.
Selling prices and material costs for each product are as follows:
Rupees
Product
A
B
C

Required:

Marks

Selling Price Material Cost Throughput Contribution

per Unit
per Unit
per Unit
160
80
80
140
50
90
280
110
170

Calculate the profit per day if daily output achieved is 4,000 units of A, 3,500 units
of B and 1,000 units of C.
(ii) Determine the efficiency of the bottleneck process given the output in (i) above.
(iii) Calculate the Throughput Accounting ratio for each product.
(iv) How the concept of Throughput Accounting is a direct contrast to the fundamental
principles of conventional costing?
(i)

Armaghan Ltd., is a medium sized company producing wide range of engineering products.
The company sells its products to wholesale distributors at an average of Rs. 850,000 per
month at invoice value and allowed its customers 40 days to pay from the date of invoice. The
company has been facing cash flow difficulties for few years and has already utilized its
maximum overdraft facility.
The Director Finance Mr. Khan suggested two possible solutions to overcome the companys
cash flow problems :
Option 1: The company could improve its cash flows through factoring. A factor would
advance 70% of the value of invoices raised to the customers by Armaghan Ltd.,
at an interest rate of 12% per annum. The factor would also charge a service fee
amounting to 4% of the total invoices. As a result of factoring, the company would
save administration costs estimated to Rs. 12,000 per month.
Option 2: The company could offer a cash discount to its customers for prompt payment. It
has been suggested that customers could be offered a 4% discount for payments
made within ten days of invoicing.
Required:
(a) Identify the services that may be provided by factoring organisations.
(b) Calculate the annual cost of the factoring agreement.
(c) Calculate the annual cost (in percentage) of offering a cash discount to customers.
(Assume all customers will avail cash discount)

02
04
04
03

Q. 6

MA-Aug.2014

P
8%
0.926
0.857
0.794
0.735
0.681
0.630

THE END

Year
1
2
3
4
5
6

5%
0.952
0.907
0.864
0.823
0.784
0.746

6%
0.943
0.890
0.840
0.792
0.747
0.705

7%
0.935
0.873
0.816
0.763
0.713
0.666

Year
1
2
3
4
5
6

5%
0.952
1.859
2.723
3.546
4.329
5.076

C
6%
0.943
1.833
2.673
3.465
4.212
4.917

U M U L A T I V E

7%
0.935
1.808
2.624
3.387
4.100
4.767

8%
0.926
1.783
2.577
3.312
3.993
4.623

V A L U
11% 12%
0.901 0.893
0.812 0.797
0.731 0.712
0.659 0.636
0.593 0.567
0.535 0.507

R E S E N T

9%
0.917
0.842
0.772
0.708
0.650
0.596
9%
0.917
1.759
2.531
3.240
3.890
4.486

10%
0.909
0.826
0.751
0.683
0.621
0.564

P
10%
0.909
1.736
2.487
3.170
3.791
4.355

F A C T O R
13% 14% 15%
0.885 0.877 0.870
0.783 0.769 0.756
0.693 0.675 0.658
0.613 0.592 0.572
0.543 0.519 0.497
0.480 0.456 0.432

VA L U
13% 14%
0.885 0.877
1.668 1.647
2.361 2.322
2.974 2.914
3.517 3.433
3.998 3.889

A C T O R S

R E S E N T

11%
0.901
1.713
2.444
3.102
3.696
4.231

12%
0.893
1.690
2.402
3.037
3.605
4.111

4 of 4

F
15%
0.870
1.626
2.283
2.855
3.352
3.784
E

16%
0.862
0.743
0.641
0.552
0.476
0.410
16%
0.862
1.605
2.246
2.798
3.274
3.685

17%
0.855
0.731
0.624
0.534
0.456
0.390
17%
0.855
1.585
2.210
2.743
3.199
3.589

18%
0.847
0.718
0.609
0.516
0.437
0.370
18%
0.847
1.566
2.174
2.690
3.127
3.498

19%
0.840
0.706
0.593
0.499
0.419
0.352

20%
0.833
0.694
0.579
0.482
0.402
0.335

19%
0.840
1.547
2.140
2.639
3.058
3.410

20%
0.833
1.528
2.106
2.589
2.991
3.326

04
05
05

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ICMA.

CORPORATE LAWS AND

SECRETARIAL PRACTICES (LA-403)

Pakistan

Time Allowed:

(i)
(ii)
(iii)
(iv)
(v)
(vi)

2 Hours 30 Minutes

SEMESTER-4

SPRING (AUGUST) 2014 EXAMINATIONS

Wednesday, the 27th August 2014
Maximum Marks: 80

Roll No.:

Attempt all questions.

Answers must be neat, relevant and brief.
DO NOT write your Name, Reg. No. or Roll No., or any irrelevant information inside the answer script.
Read the instructions printed inside the top cover of answer script CAREFULLY before attempting the paper.
In marking the question paper, the examiners take into account clarity of exposition, logic of arguments,
effective presentation and language.
Question Paper must be returned to invigilator before leaving the examination hall.

Marks
Q. 2 (a)

(i)

What is a prospectus?

01

(ii)

When a statement included in a prospectus is deemed to be untrue in terms of the

Companies Ordinance, 1984?

02

(iii) The Companies Ordinance, 1984 requires a sufficient number of copies of the
prospectus shall be made available at certain places. Specify such places.

03

(b) As per section 146 of the Companies Ordinance, 1984 a public company is restricted to
commence business unless it fulfills certain requirements. Describe those requirements.

06

(c) M/s. Big Boss Limited, a public limited company has created a charge in favour of Dell
Bank. Suppose you are a Corporate Consultant of the company and the Company
Secretary is seeking your advice in respect of the following matters:
Required:
(i)
(ii)

The authority with which the mortgage/ charge is to be filed and time period for
filing the mortgage/ charge document.

02

The documents to be filed for registration of mortgage/ charge.

04

Q. 3 (a) M/s. Solar Petroleum Limited (SPL) is a public listed company. The company is
engaged in the business of exploration and extraction of petroleum. Mr. Saad has been
appointed as a Chief Executive Officer (CEO) of the Company on January 15, 2014.
Since he is not updated with regard to corporate law requirements, therefore consults
Company Secretary on various occasions in respect of the corporate matters. Mr. Saad
overheard a discussion between the Chief Financial Officer (CFO) and Director
Marketing whereby CFO was saying that he had purchased shares of SPL and therefore
needs to fulfill the requirements of beneficial ownership. Mr. Saad called the Company
Secretary and discussed that he also buys and sales shares of SPL. He provided the
following details about his trading in SPLs shares to the Company Secretary for advice:
Addition/ (Deletion)
Remarks
No. of shares
1
31.12.2013
45,000
Purchased from the market
2
30.01.2014
150,000
Purchased from the market
3
05.02.2014
*(5,000)
Sold in the market at a profit
*These shares were acquired on September 15, 2013.
Sr. #

Date

Required:
Mr. Saad request the Company Secretary to guide him in respect of the following
matters as per the provisions of the Companies Ordinance, 1984:
(i)

CLSP-Aug.2014

Mr. Saad asked the Company Secretary to find out whether he is required
to comply with the provisions of beneficial ownership by virtue of trading in the
shares of SPL?
1 of 3

02
PTO

Marks
(ii)

(b)

Q. 4 (a)

Identify the persons other than Chief Executive Officer (CEO) who is required to
comply with the provisions of beneficial owner.

03

(iii) Mr. Saad also asked Company Secretary to identify the legal requirements on
each of the purchase and sale transactions carried out by him as per details given
above. He wants separate comments on each individual transaction.

06

Enumerate the conditions as per the Companies (Issue of Capital) Rules, 1996 for
issuance of bonus shares by a listed company.

08

The Board meeting of M/s. Global Polymer Limited was scheduled on March 15, 2014.
The senior most Director of the company Mr. Kashif, expired two days before the date of
the meeting. The meeting took place on the scheduled date. One of the directors Mr.
Akbar suggested that another gentleman representing minority interest may be
appointed in place of Mr. Kashif and he proposed three names in this regard.

Required:
(i)

(ii)

(b)

Q. 5 (a)

(b)

Q. 6 (a)

The Secretary was asked to comment on the proposal of Mr. Akbar in the light of
Code of Corporate Governance and provisions contained in the Companies
Ordinance, 1984 regarding filling of casual vacancy of director.

04

If a person, representing minority shareholders wants to contest elections of

directors in a listed company, what facilitation the listed company may offer for
proxy solicitation to this person under the Code of Corporate Governance, 2012.

06

In the light of section 95 of the Companies Ordinance, 1984 pertaining to buy-back of

shares, answer the following:
(i)

Which type of company can buy its own shares?

01

(ii)

The notice of the meeting in which the special resolution authorizing the purchase
of share is proposed to be moved, shall be accompanied by an explanatory
statement containing material facts. Specify such material facts.

04

(iii) List down the particulars to be recorded in the register of shares purchased by a
company through buy-back.

04

Where a modaraba is floated for a fixed period or for a specific purpose, all the directors
of the modaraba company have to file a declaration with the registrar on expiry of the
period fixed or accomplishment of the purpose of the modaraba, as the case may be.
Briefly discuss what is stated in this declaration.

05

What other document required to be accompanied with the declaration at (a) above, and
how much time is available for filing these documents with the registrar?

03

Mr. Asif has recently been appointed as the Chief Executive Officer (CEO) of the M/s.
Shalimar Limited (SL). The first Board meeting of the company subsequent to his
appointment was scheduled on April 25, 2014 to discuss the quarterly accounts for the
3rd quarter ended on March 31, 2014. After the meeting was over Mr. Asif noticed that
Company Secretary was very busy in making arrangements for dispatching quarterly
accounts to shareholders.

Required:
Mr. Asif made the following enquiries from the Company Secretary:(i)
(ii)

CLSP-Aug.2014

Is there any other way for transmission of accounts to the members instead of
sending them through post?

02

If the SL wants to transmit quarterly accounts other than by sending them

through post what are the requirements it needs to comply with?

05

2 of 3

Marks
(b)

Alfa Company (Pvt.) Limited is in the process of changing its name to Beta Company
(Pvt.) Limited. The company has to pass the special resolution for change of its name
on the directive of the Registrar.

Required:
For changing the name of the company, draft the resolution to be presented to the
shareholders for approval.
(c)

05

Assume the annual general meeting (AGM) of M/s. Mars Chemical Limited is scheduled
on October 29, 2014. The notice for the meeting is issued on October 5, 2013 that
contains a proposal of the directors to appoint the retiring auditors for the current year
too. Company Secretary receives a notice from a shareholder on October 19, 2014 with
proposal for appointing some other audit firm as the auditor.

Required:
Should the notice for appointing an auditor other than retiring auditor received from a
shareholder be accepted or rejected? Discuss in the light of section 253 of the
Companies Ordinance, 1984 Provision as to resolutions relating to appointment and
removal of auditors.

04

THE END

CLSP-Aug.2014

3 of 3

PTO

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ICMA.

RISK MANAGEMENT AND AUDIT (LA-502)

SEMESTER-5

Pakistan

Time Allowed: 3 Hours

(i)
(ii)
(iii)
(iv)
(v)
(vi)

SPRING (AUGUST) 2014 EXAMINATIONS

Friday, the 22nd August 2014

Maximum Marks: 100

Roll No.:

Attempt all questions.

Answers must be neat, relevant and brief.
DO NOT write your Name, Reg. No. or Roll No., or any irrelevant information inside the answer script.
Read the instructions printed inside the top cover of answer script CAREFULLY before attempting the paper.
In marking the question paper, the examiners take into account clarity of exposition, logic of arguments,
effective presentation and language.
Question Paper must be returned to invigilator before leaving the examination hall.

Marks
Q. 1

Suppose you are an Audit Manager with Prudent & Co., Chartered Accountants. You are in
the process of planning the audit of one of your firms old audit clients, M/s. Cool Electronics
Limited (Cool) for the year ended June 30, 2014. In this regard, you conducted preliminary
planning meetings with the management of the company and met the Chief Financial Officer
(CFO) and Chief Executive Officer (CEO) of the company and gathered the following
understanding/ information.
Cool has been primarily engaged in the manufacturing of high quality Air Conditioners,
Fridges/ Refrigerators for last many years. It sells its products through authorized dealers and
distributors. In the recent years, due to stiff competition the margins have squeezed and the
company faced a great challenge of selling its products. However, over the last two years the
performance of the company deteriorated. Due to continued decline in sales, the company
faced a loss in last year and took the following measures to enhance its sales:

The company revised its credit policy by extending the credit period from 15 days to 30
days for dealers/ distributors. The company also relaxed the credit evaluation criteria/
process for dealers/ distributors. Previously, the dealers/ distributors were required to
deposit certain amount as security deposit before being allowed any credit; this condition
has now been waived off.
The company introduced sales bonuses for its sales/ marketing teams and higher
management teams on achieving certain sales targets.
The inventory valuation policy has also been revised and certain additional overheads
incurred during the year are considered to be part of production cost.

Due to these measures there has been an improvement in the sales revenue of the company.
However, overall financial position has been further deteriorated. Given below are the results
of the company for the last two years i.e. year 2013 (actual) and year 2014 (projected to 12
months on the basis of 10 months draft):
Description
Revenue
Cost of sales
Gross profit
Operating and finance cost
Profit/ (loss) before taxation
Other balance sheet information is as follow:
Inventory
Receivables
Cash
Trade payables
Bank overdraft

RMA-Aug-2014

1 of 3

Rs. in million
2014
2013
250
180
(180)
(110)
70
70
(100)
(80)
(30)
(10)
50
90

60
50

30
30
20
20

PTO

Marks
This year in the month of April, 2014 the Board of Directors of the company reviewed the
situation and after the detailed deliberations, being dissatisfied from the prevailing situation,
dismissed certain key members of the Sales and Marketing teams along with certain credit
department personnel due to gross misconduct without any redundancy and compensation
payments. The employment contracts of certain employees contain provisions for dismissal
compensations. However, these dismissed employees opted legal course of action against
the company considering this as unfair dismissal and filed legal suites against the company.
Required:
(a)
(b)
(c)
(d)
(e)
(f)

(g)

Q. 2

Briefly comment on the measures adopted by the Cool including changes made to
credit policy and the possible impact of these strategies.

05

What are the key audit risks at Cool for the financial statements for the year ended on
June 30, 2014? Explain each of such risks.

06

What would be your key response to overcome each of the key audit risks identified as
(b) above?

06

Define and briefly explain the going concern assumption used in the preparation of
financial statements.

03

Identify and explain the events or conditions present in the case of Cool which can
cause significant doubt on Cools ability to continue as going concern.

05

Assuming the fact that due to the events or conditions identified as (e) above, exists
material uncertainty. Suggest an appropriate course of action for the management of
Cool and the actions to be taken by you as the auditor.

10

Describe the audit procedures you would carry out to verify the amount of the dismissal
claims to be paid by the company to its employees dismissed on the direction of the
Board.

05

Suppose you are working as a Group Chief Financial Officer (CFO) with new growing group
of companies, M/s. Global Revolution Limited (GRL), engaged in diversified business
activities under the visionary leadership of Mr. Asim, (Chairman), a business graduate from
Harvard University. The group intends to set up coal based power production unit at one of
the sites in Punjab, indicated by the Government of Punjab under its recently announced
power projects development policy. The project will require a heavy investment and will be
financed by a consortium of banks and financial institutions. Considering relatively new
business area the banks are reluctant to offer fixed interest rate for the financing and
proposed the interest rates as KIBOR (Karachi Inter Bank Offered Rate) + BPS (Basis
Points). The GRL is not used to fluctuating rate borrowings as all of its existing financing are
based on fixed interest rates. Considering the reluctance on the part of the banks to offer
fixed interest rates, the group is considering to enter into Interest Rate Swaps
arrangements. The Chairman has advised you to prepare a presentation for the Board of
Directors to explain such arrangements.

Required:
Prepare relevant details for a presentation outlining the following:
(a)
(b)
(c)
(d)

RMA-Aug.2014

Define interest rate swaps and discuss how interest rate swaps may be arranged.
Describe the effect of interest rate swaps on the borrowings.
Discuss the key advantages of interest rate swaps.

Explain the challenges or the problems associated with swaps arrangements.

2 of 3

03
02
06
04

Marks
Q. 3

(a)

An auditor is required to prepare and retain written documentation in the form of audit
files which should be completed within the appropriate period of time after the date of
auditors report.

Required:
In view of the requirements of audit documentation, explain the following:
(i)
(ii)

(b)

Q. 4

appropriate period for the auditor to complete audit files from the date of audit
report and the period for which such audit files may be retained.

02

types of audit working paper files generally maintained by the auditor indicating
few contents of each such file.

04

Describe the following methods used to obtain audit evidence by providing at least two
examples of each:
(i)

Tests of controls

05

(ii)

Substantive procedures

05

Suppose you are an Audit Manager in Faisal and Co., Chartered Accountants, which has
recently been appointed as the auditor of the Safa Group, a well-recognized group of
companies. The group comprises of one holding company, Safa (Private) Limited having
three subsidiaries and one associate. The three subsidiary companies: Alpha, Bravo and
Charlie are engaged in textile, sugar processing and beverage sectors respectively. The
associate company, Delta, is engaged in pharmaceutical business. Faisal and Co., Chartered
Accountants is the statutory auditor of Safa (Private) Limited and Alpha, whereas Bravo,
Charlie and Delta are audited by other firms of Chartered Accountants. The audited financial
statements of Bravo, Charlie and Delta is available to you for the purpose of group audit.

Required:
(a)
(b)

Q. 5

(a)

Explain the main features of a group audit which differentiate it from an audit of
individual separate financial statements.

04

State the procedures you would perform to express an opinion on the truth and
fairness of the consolidated financial statements of Safa Group.

10

Suppose you are an Audit Manager in an audit firm, M/s. Elite and Co., Cost
Accountants. The firm has assigned you a task to conduct the cost audit of one of its
clients, M/s. Chitral Cement Limited. You deployed Mr. Abdullah, the Audit Senior to
carry out the Cost Audit of the company. During the audit, Abdullah raised many
queries to seek your advice regarding cost audit.

Required:
Being an Audit Manager guide Mr. Abdullah with regard to the following queries:
(i)

In relation to wages and salaries of Chitral Cement Limited, what particular items
Mr. Abdullah need to include in the Cost Auditor Report?

07

The Accounts Manager of the company has remarked that he thinks cost audit
and financial audit appear to be similar in nature. What should Mr. Abdullah state
to Accounts Manager to make him aware about the differences between cost
audit and financial audit?

04

List down the industries which are required to maintain cost accounting records as per
the Companies Cost accounting records orders issued by Securities and Exchange
Commission of Pakistan (SECP) through official gazette notifications.

04

(ii)

(b)

THE END
.

RMA-Aug-2014

3 of 3

PTO

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