Senior Auditor Past Papers |FPSC Past papers for the post of Senior Auditor

August 23, 2020 0 Comments


C.4SE NO.F.4-172/2017-R SENIOR AUDITOR (BS-16I

(Bs4ch No.2)

Time Allowed : 100 Minutes                                                                          Maximum Marks : 0


  1. Read thc test items ( MCQS) from Questions Bonklet and Fill in the appropriatc Box M by your correct answer on the Answer Sheet.

  2. All Test Items ( i4CQs) have equal vulue and there is no negative marking.

  3. Do not w rite your Roll N umber, Name, answers to the qucsi ions or any uther remarks on or inside the Questions Buck let.

iv     Hand-over both i.e. Questions Booklet and Answer Sheet lo the Invigit.aior on duty of

ynBr row’ on the conclusion of Test.

”imuse ouTrimquxsTlONi BOOKLET (IN ANY SHzPR OR PORM



  1. Use of Calculator is not allowed.




Select the correct answer azid Fill in the F’ill in the appropriate BoxH on the Answer Sh eel. Fill in the blanks with ninet approf›riate choice

1.             Fungi            not included among the plant kingdom.

  • is (H) are                           (C) Will be                   

  1. No sooner did he gn in                    he came

    • then (B) after                         (C) arid                           Ynu should try to                    your


(A) cut dow’n                 (D) cut out                    

  1. He has put the meeting

    • up (B) off                           (C) away

  2.                      a long time this tity has been

    • ,sincc (B) for                           (C) till

  3. The mother the child’s

    • cleaned (B) cleared                     (C) w ipcd

  4. A good teacher his students to work

    • mspircs (B) compels                   (C) forces

(D) cut under


(D) out (IN) from

(D) erase d


(D) allow’s





Rising  prices  hsve msde i4 difficult to maintain s good                 nf living.

(A) inspires                   (B) compels                   (C) forces                                       He cunsnled the                                                                       mother as best ax he could.




(A) Lucky                     (B) ‘’riting                      (C) unfortunate His             over the property is legitimate.

  • lmpaticnt


  • share (B) P:«I


what is the underlined part of the senteri ce?


  1. Tbe hour to prepare lesson has

    • subject (B) preposition   He ran very fast.

(A) Noun                       (B) adjective

  1. she has gone to hus a

(C) Demand





IC ) Conjunction


  • Ads’erb

tD) Claim





  • Predicate


  • Conjunction


  • Nc›un Phruse (B) adjective Phrase       (C) Adverb Phrase         (D) Clnuse

  1. Smoking is injurious to

    • Participle (B) €ieirnd                     (C’) Complement           (D) Preposilinn



1 6.

Vinegar tastes sour.

(A) Linking Verh           (l3) D recr Ubject           (C”) Indirect (Jhject        (U) Complement I remember to return tht books.




(A) Participle                 (R) Gerund

There are not enoueh spoons.

(C) C”omplement             (D) Infinitt›”e



(A) Noun                      (B) adjcctive

Birds are fly znd fish so•im.

(A) Prepo.siiion             (H) adjective

(C) Adverb


  • Adverb

  • Arliclc


  • Conjunction


t9.        He does his work c9refulty.

  • Nuun (B) adjective

(C) Adverb       (D)        Interjection






  1. Hush! Don’t make s noise

    • Preposition (B) Phrase                     (C) Clause         (D) Interjection



Select the cocrect ans sec and fill in the appropriate Box H on the answer sheet

  1. Which system produces information osed for inventory valuation, budgeting, cost control,

performance reporting, and make buy decision?

  • Sales order Processing

  • f’urchases’accounis payable

  • Cash disbursement

  • Nniie of these

  1. The order of the entries made in the ledger is by:

    • Transaction number

    • Account number

    • Date

    • None of thesc

  2. In general s special journal would nut be used to reenrd:

    • Sales

    • Cash disbursements

    • Deprectatit›n

    • Purchases

24.           Subsidiary ledgers ore used in manual accounting environments.  What file is comparable  to a subsidiary ledger in a computerized environment?

  • Archive file (B)        Reference file   (C)      Transaction file (D)       master file


  1. Which of the following is an archive file*

    • Am accounts payable subsidiary ledger

    • A cash receipts file

    • A sales journal

    • a file oi’accounts receivable that have been written off

26.           When de4ermining the batch size, which consideration ix the lesst impnrfsnt?

  • Achieving economics by grouping together large numbers r›f transactions

  • Complying with legal mandates

  • Providing control over iht transaction process

  • Balancing the tradeoff between batch six.c and error detection

  1. Date flow diagrams

    • Depict logical tasks that arc being performed, but not who is performing them

(E)        lllustratc the relationship bctwccn processes. and the documents that flow bciwecn them and trigger activities

  • Represent relationships bem’een key elements of the computer system

  • Describe in detail tht logic of the princess

  1. Whith statement is not correct

    • The post-closing trail balance reports the ending balance or‘each account in general ledger

    • One purpose of‘ preparing the unadJustcd trial balance is to cnsurc ihat debits cqual credits

{C j       financial    statements    arc    prepared    bsscd    on    the    unadjustcd    trial             balance

(D)        None of above

  1. Financial statements are prepared from the:

    • Trial balance

    • Adjuslcd trial balance

    • General Ledger

    • Nniic of these

30.           Which si4uution indicates an internal control rixk in the general ledger/Financial reporting

system (GL/FRS)?

  • The empltiycc who maintains the cash journal computes depreciation expense

  • The cash receipts journai voucher is approved by lhe treasure

  • The cash receipts journal vouchers are pre numbered and store in a locked safe

  • the employee who maintains the cash receipts journal records transactions in the accounts receivable subsidiary ledger

  1. Which best describes a batch process General Ledger System (GLS)

    • Paper dncuments are eliminated

    • The general ledger master file is updated each night

There is a time lag between transaction process ng and posting to the general ledger

  • D} No direct access or querying of the Lienezal Ledger is possible

Page 2 of 6

 21.           An advantage of a balch General Ledger S¿stent (GLS) is that

(A1       Wcparatinn bcta’ccn attthorizatinn a»d transaction processing is rtrictTy enfnt’ccd (B}              Thc gcncral lcdgcr master filc is rccrcatcd with cach update

(C}        Updates and rcct›nci1 iation of’ transactit›ns uccur as a step wiihili the transaction cycle

(D)        F.rrnrs and out-of-balance ctinditions arc idcnttficd at the end ot’the month

V’hict statement is not true?

(A)        Authnrity retire tn an individual ‘s obligation to achieve desired results

(ul         lf » mpl ice is giv en the responsibility for a task, thai cnip1o)’cc should bc given authority to niak c decisions within lhc limits of thai task

(Cl        The detail provided io cmploycc is function of the employee’s position wilh ihc firm

(D)        All of ihc above arc true

  1. The income statement should be prepared

    • Bcfnrc the rctaincd earnings statement and balancc shccl

(B}        Afler thc retained earnings statcmcnt and before the balance sheet (Cl         Amer the retained earnings statement and balance sheet

(D)        After the balance sheet and before the retained earnings statement

In a defined-benefit plan, the process of funding refers to

(A)        Determining thc projcctcd  bencfit obligation. (bJ             Dctcrminitig the accumulated benefit obltgaiion.

(C)        making the pcrindi ct›ntrihutinns tn a tui›ding agcncy tn cnstif ‹h ‹ r»z› «

x•-aiIabTc to meet retirecs’ claims.

(DJ        Determining the amount that miphi be reposed for pension expense

36.           In a defined-contribution plan, a formula is used that

  • Dctincs the t›cncfils that the employee u ill rcc civc at the time ot’

  • insures that pension expense and thc cash landing aMoitnl will be tlii4éteni.

  • Requires an employer to contribute a certain sum cach period based on the

  • usures thai trnployei s are at risk to make sure funds are available at retirement.

        V’hich of the following is not a characteristic nf a del’ined-contributinn pension plan?

  • The employer’s coniribUtjoll tack penod is based on a formula

  • “Fhe benefits to be received by employees are usually determined by an employees three highest years of salary ‹defined by the terms of the plan,

{C )       The uccountiitt for a clcTined-ccintribution plan is strat ght lcirwaril rind uncoiuplicatetl.

(D)        The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the ewloyee.

  1. Alternufis’e methods txist for the meesuremgnt of the peris*on obligation (liab ility). Which measure requires the use of future salaries in i4s computation?

    • Vestcd bentfit obligation

(B}       Accumulated benefit obligation

(C)        Prof ecieil benefit obligation

(DJ       Restructured hmefit obligation

TEe projected benefit obligation is the measure of pension obligation that

  • 1s required to be used fcr reporting the service cost component ct’ pension

  • Requires pension expense to be determined solely on the basis oT’ the plan formula appl ied to years of service to date and based on existing salary

(C}       Requires the longc st possible period for funding to maximize thc tax deduction.

(Ci)       1s not sanctioned under generally accepted accounting principles for rcpnriing the scn’ice



  1. wnich of the following are incorrect”







Account to be debited

Coods sold for casft                               Cash Goods bnught y o credit from T carter Sure hose Cood  Rammed  by yes to C Barry                    C Barry Van  bought for Cash      Purchase

(ii) And { iv) only

(iv) Only

(iii) Only

  • and ( ii i) only

 Account to be Credited


T carter Outward Cash

  1. The purpose of financial markets Is to:

    • Cnntrol inflation

‹C )       Increase the price of coiiirnon stucks

  1. Assets are held for the purpose of:

(B)        Allocation savings ef’ficiently

  • Luwct the yield on burials

 Earning revenue (B) resiile          (C) conversation into cash          (D) None of these

42.           Depreciatinn is provided on:

  • L ixed Assci (B) Outward charges     (C) Current assets         (G) Intangible assets Deferred taxation is:

(A) Fixed A sect     (B) Fixed Liabililies (C) Piirl of ow’ncr4′ Equity          (D) None ct tkcse

45.           Process of cutting is relevant to:

 Cement Industry

  • Bosh (A & B)

Stratified audit sample means:

  • Job Order co5t oriented projects

(D)        None o1‘  these

   Randomly selected items from audit ( B) Pu tposivcl y bettered items ft›r audit

  • Items cnrcfully selected from each gr»«F (D) None of thesc

Income tax rate aFe the samf’. f0 .

iAj Limited companies (B) Baking Companies (C) Public Cumpanies (D) None cr these Leaders perform:

(A) Dccisional roles       (B) lntormal roles          (C) Informational roles (D) lnicriio!ional roles

f?urrent ratio is calculated tn:

(A) Compare the current assets with Past assets (B) Compare the current assets with Fixed assets

(C) Measure the Liquidity of Conccrn                 (D) None of these Debenture Represent:

(A)       The investment  of equity shareholders  (B)        Dirccttir share in a business

(C)         Long tent liabilities of  a business           (D)       Lon¿p tern capital of a business

Auditing is a brznch pf:

(A) Naiui‘al Science      (B) Social Science         (G) Abstract 5cicnce      (D) None of these Stock in trade is a:

(A) Fixed Assets            (B) Citations Asscts       (C) Intangible Assets     (D) Current asscis

A business asset of Rs. 44312 and ow’ner’s equity Rs.13210. what is 4he amnunt bf liabllities?

(A) Rs 3. 1. 1ti2                (i3) Rs 57522                 (C) its.44312                 (D) None of ikcsc

Trading & Profit & I.pss account and balance sheet is prepared from:

(A) Lcdgcr balance                                             (B) Lcdgcr balance, cash and bank balances

(C) Cash  bnok and bank book                             (D) Trail balance


  1. Calculate the gross pr0fit/lnss if sale 66000, Cost of szles Rs.50O0g, f?pening stock

Rs.100011; Purchases Rs.40000; Wages Rs.20000 znd Office rent Rs.10000.

  • Loss Rs 10000 (B) Loss Rs *0000        (C) Profit Rs. t 0000       (D) None of these


  1.  The cost  uf the asset  after  expiry of i4s useful life the called                    .

(A) Written down Value(H) Residual Value        (C) Expired Value         (C) Nc›nc ol these Which of the following statement is TRU E?

(A)        Assets = Capital 1 iiibi I ities                   (B)       Capital = assets liabilities

(C)        Assets •  liabilities = Capital                   (D)       Assets = liabilities — C’apital

In Pakistan, tJnancial statcme»t of’ limited companies are prepared in the according n’ith:

(A) International  Accounting standards a‹loptod in Pakistan         {B) Companies Or‹linanc e I 9R4

(C) Htith (A & H)                                                                         (D) Nome of these

The main object of on audit  is                      


Expression of opinion


Detection and prevention RY fraud&error


Rnth (A & Ei )


n psnds on the typc of audit

The risk of management fraud increases in the presence of:

  • Frequent changes in supplies

  • Improved intclaial Control System

  • Substancial increase ›n sales


Cnncurrent audit is s part of:

(A)        Internal chetk system

(C)        Internal audit system





Continuous auriit None of these

62.        Yhe statutory auditnr of a Government company submits his report to:

(A)       The BOYS of the C’‹›mpaiiy


d he C & AG

(C)        The Legis lalure


Thc company secretary

ln order to vouch w hich of the expense, the zuditur mill examine bill of entry’

(IJ) Management incentive based or sate ‹lone in a quarter

  • Custtrr (H) Excise duties           (C’) Sale 3 ax                   D) Income 4“ax




When counting cash on hand the auditor should:

  • Ensure presence of somebody mom management

  • Obtain a receipt from custodian as tu its returil

  • Ensure postage and revenue stamps are not counted in physical count

  • Temptx ary advances to employees are count‹xi to calculate balance uf cush in h:nod

  1. Ca otra I risk is assessed at:

    • Ov’erall financial statement level (B)        F mud risk factor les’el

(C)        Financial Statement assertion level                      (D)       control environment level

A large organization with separate legal s4ntus is knnwn as:

(A) Lnnited Company    (H) Snlc Prfiprietorship     (C) Partnership           (n None of these

  1. If ihe profit is 1 / 4 of the sales then it is:

    • 1*4 of ihc cost price                               (B)        1 ‘3 oi the cost price

(C)        1/s ot“ ihe cost price                               (D)       1/2 of the cost price G8.   An example of financing activities in the context of tash flow statement is:

(A)        Fixed capital expenditure                       (B)        Long term ctcposit

(C)        financial Chargcs paid                            (D)       Dividend Paid

  1. Debentures arc a company’s:

    • Assets (B) Liability      (C) Expense                  (D) Investment

70.           Which o1′ the following accounts would ntver appc•ar in the after-eluting trial balance?

  • Dividends (B)        Accumulated dcprcciation

(C)        Income taxes expense                             (D)       Both tA & C)

71         Wbich of the following usually is least iaiportan4 as a measure of short-term tiquidliy?

  • Quick Ratio (B) Debt  ratio   (C) Current Ratio       (D) Cash Flow’s fi’om opcrnting activities

  1. Which of the follo»’ing business would be most likely use protest costing?


A law firm


A maker of frozen orange juice

[G j

A hospital


Hi autn repair shop

73.           Cnodwill should be classified as z:

  • Currcnt s (B) liquid Assci             (C) F boat ing asset    (D) Intangible assci

  1. Preference share are those which earrv preferential right in respect of

    • Dividends (B j       Payment of Capital

(C)        Both dividen‹l und repayment of capital              (n)        None of these

75.           The priatpry purpose of establishing quality control policies and prncedurex for deciding on eliext exBluation is tc:

  • Ensure ndhcrvncc to gc craIIy ncccptcJ auditmg standards

  • Acceptance nr retention of client whose management does not Jack integrin

  • L’.nsure audi‹ t”ees is charged ac ordi»g tn jhe type ut audit work assignect

{D)       All of” thesc

  1. What are an!7‹’•• ! Procedures?

    • Substantive tests designed to assess control risk

(13)      Substa@ve tests designed to evnluate the validity of innnagcincnt“s representntit›n letter

  • Substantive tests designed to study relationships between financial and non-financial

  • All of thcsc

  1. whitii of the foUowing sections deal with qualification of the auditor?

    • Section 226 (I ) and scctinn 226 (2)         (B)       Section 224 ( 1 ) and sccti on 224 (2)

(C)        Section 2Z6 (3) and section 226 (4)        (C)       Section 224 (1) nnd section 224 (4)

  1. Net profit is equal to:

    • Sales Irss cost o1“sales and ogcrnting cxpc\scs (B) times Profif tche oycrat ing xpci cs

(C) Sale less operating expenses                                      (D) Both (A & B)

  1. Excess of sale over cost of goods in accounting periiid is termed as:

    • Net Profit (B) Gross Profit             (C) Rct.a in ed comings (D) None of these

If motor vzn Costs Rs.I 2500, its accumulated depreciation is Rs,d200: depreciation charged for the x’ear is Rs.2500. what »-ill be i4s 8ook value s4 the end of the period?

(A)        Rs.10000          (B)        Rs.fi3tl0            (C)        Rs.5800            (D)        Rs. 10800

  1. Both debentures and 1’erm Finance Certificate nre usually issue by:

    • Public Companies (D)       l•rivatc C’oinpan ice

(C)        Listed Coiiipanies                      (D)        Non Listed Companies

  1. Share premium money can be used for:

    • Payment of di vidend (B)        fi’rite of good will

(C )       Issue of  telly paid bonus shares  (D)       None of these

  1. The system of recording transactions based on duel 9spect to«cept is csJled:

    • Double accounting system (B) Double cnrry system

(C)        Single entry system                    (D) None of these

Ceneral journal  is a book of                           entries

(A)        First                  (B)        Original             (C)                  Secondary        (D)        Generic Eivery business transaction  effects at leasi                                 accounts

(A)       One                   (8)        ‘t‘wo                 (C)        J’hree                ID)        Infinite

Public company Should start business only  after getting certificate  of

(A)        lncorporation                             (B)        Commencement of business

{C )       After One year later                  (D)       None o1“these

3“he ability of a firm  tn convert  an asset to cash  is called                  

(A)        kiqui‹lity           (H)        Sole cue y          (C)        Reiurn              (D)             Markeiabil ity Which of the foIIow in R business form of business organization is least regulated‘?

(A) Sole proprietorship (B) €icncral Partncrship (c) Liinttcd Partnership (D) Corporation

Wbich of the following is tbe acronym for GAAP?

(A) GencrRlly adopted Accc›anting Principles (H) Generally Accepted Auditing Principles

  • Generally Accepted Accnunting Principles (D) Genernlly Adopted American Principles The difference between  on  investment’s market value and i4s cost is called the               of the

  • Net present x’aluc (B) Economic valuc      (C) Book Value What is a Compiler?

(A)       A compiler is a language providing very efficient execution

(b)        A compiler does a conversion line by 1 inc as the program is run

  • None of these

  • A COInpiler is a sFccial prngram tllRt prncesses statements written in a F•• •• ••programming language and turns them info machine language

  • Nonc ot’thcsc

91.           Which of the follow’ing is both input and output device?

  • K cyboard (R)        Mousc               (C’)      Modem             ( D) Scanncr

Which of the following is machine independence programming language?

(A)       Low level language                                 (B)        Assembly longuiigc

(F.)       H1gh LcvCl Languagc                               (D)       Nnnc of Thcsc

  1.            are used in Third Generation computers instead Of transistors:

    • Microprocessors (B)        Vacuum Tubt s

  1. IC) Integrated Circuits (D)       None of thtse

  1. Who invented the first computer?

  • Lee dcforcsi, John Mauchly (B)        Jehn Mauclil,y (C’)            Charles Bubbagc                                                              (D)       None ot“ thcsc

  1. Prosper Eckcrt

  1. Wh at is the smallest and largest font size available in Font Size iool on 1’ormatting toolbar?

    • 8 and 72 B)         8 and 64            C)         12 and 72          (D)        None of abos c

  2. To remove selected paragraph or character formatting*

(AJ       Ctrl i Spacebar   (B)        Ctrl  Enter         (C)        Ctrl I Del            (D)        Alt *Spaccbar

98.           There are            bits in One b¿’te:


  • 4 (B) R

  1. UNIVAC means:

(€.’) 16                         (D)No1icothcg


  • Universal Array Computer (B)        Unique A utomaiic Computer

(C)        Univcizal .Automatic Coinputer              (D)       NDIIP Ot‘ these

100.        To produce high ttualit}’ graphics (I+ardcopy) in rolor, you would want to use:

(Ay       Ink jet f’rintet   (B)        Plotter               (C›        RGh monitor    (P)        None of these


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