PPRA Rules:S.R.O. 432(I)/2004.

- In exercise of the powers conferred by section 26 of the

Public Procurement Regulatory Authority Ordinance, 2002 (XXII of 2002), the Federal
Government is pleased to make the following rules, namely:-
1. Short title and commencement.-
(1) These rules may be called the Public Procurement Rules, 2004.
(2) They shall come into force at once.
The PPRA Rules 2004 shall include:
GENERAL PROVISIONS
Definitions.-
Scope and applicability.-
Principles of procurements.-
International and inter-governmental commitments of the Federal Government.-
Language.-
Integrity pact.-
PROCUREMENT PLANNING
Procurement planning.-
Limitation on splitting or regrouping of proposed procurement.-
Specifications.-
Approval mechanism.-
PROCUREMENT ADVERTISEMENTS
Methods of advertisement.-
Response time.-
Exceptions.-
PRE-QUALIFICATION, QUALIFICATION AND DIS-QUALIFICATION OF
SUPPLIERS AND CONTRACTORS
Pre-qualification of suppliers and contractors.-
Pre-qualification process.-
Qualification of suppliers and contractors.-
Disqualification of suppliers and contractors.-
Blacklisting of suppliers and contractors.-
METHODS OF PROCUREMENT
Principal method of procurement.-
Open competitive bidding.-
Submission of bids.-
Bidding documents.-
Reservations and preference.-
Bid security.-
Bid validity.-
Extension of time for submission of bids.-
OPENING, EVALUATION AND REJECTION OF BIDS
Opening of bids.-
Evaluation criteria.-
Evaluation of bids.-
Clarification of bids.-
Discriminatory and difficult conditions.-
Rejection of bids.-
Re-bidding.-
Announcement of evaluation reports.-
Procedures of open competitive bidding.-
ACCEPTANCE OF BIDS AND AWARD OF PROCUREMENT CONTRACTS
Acceptance of bids.-
Performance guarantee.-
Limitation on negotiations.-
Confidentiality.-
Alternative methods of procurements.
On account payments.-
Entry into force of the procurement contract.-
Closing of contract.-
MAINTENANCE OF RECORD AND FREEDOM OF INFORMATION
Record of procurement proceedings.-
Public access and transparency.-
REDRESSAL OF GRIEVANCES AND SETTLEMENT OF DISPUTES
Redressal of grievances by the procuring agency.-
Arbitration.-
Mis-procurement.-
Overriding effect.-





Audit objections settlement: PAC asks FBR
to show seriousness

The Public Accounts Committee (PAC) has warned the Federal Board of Revenue that the
committee would be forced to approach Prime Minister Syed Yusuf Raza Gilani in case the tax
managers continued to show lack of commitment and seriousness in settlement of audit
objections raised by the Auditor General of Pakistan (AGP). Sources told Business Recorder
here on Tuesday that the National Assembly Secretariat (PAC Wing) has written a letter to the
FBR in this regard.

The PAC has categorically informed the FBR that the Prime Minister Gilani would be reported
about the attitude of the Board during the committee meetings in case the tax authorities would
not improve its performance. The seriousness of the matter is evident from the fact that the PAC
has hinted of filing a report to the PM following persistent irresponsible attitude of the FBR
during committee meetings. "If the performance of the FBR is not found up to the mark, PAC
will be forced to take stringent action and the Prime Minister will be apprised of the situation,"
PAC warned.

According to the FBR, during the meeting of the Special Committee-III of PAC for examination
of Audit reports for the years 2004-05, 2006-07 & 2007-08, the committee was informed by the
Auditor General's Office that the FBR failed to hold meaningful DACs in respect of the Audit
paras which resulted in a huge number of these paras to be examined by the Public Accounts
Committee.

It was informed that no working paper for the departmental accounts committee (DACs)
meetings was supplied to the Audit for the DAC meeting schedule by the FBR on July 6, 2011.
Therefore, the verification exercise was carried out on the basis of incomplete documents
provided to the Audit. The working papers were not received till submission of the Audit Briefs
to the PAC Secretariat on July 18, 2011.

The PAC has, time and again, directed that the principal accounting officers (PAOs) are
responsible for holding DAC meetings at least twice a month and Chairman FBR being the PAO,
or, if he is not available for any reason, at least a Member of the FBR is supposed to chair the
DAC meetings.

The Audit reported that in the DAC meeting called on July 6, 2011, the meetings were chaired
by the Chief (Enforcement and Accounting) who is a BPS-20 officer. However, the Audit held
the meetings to avoid a total waste of the resources of the Audit the FBR and the Finance
Division spent in this exercise. Meetings were held on the preliminary replies prepared by Large
Taxpayers' Units (LTUs), Regional Tax Offices (RTOs), Model Customs Collectorates (MCCs).

This revealed lack of commitment and seriousness on part of the FBR to settle the numerous
Audit paras at the DAC level which could reduce the paras to be examined by the Public
Accounts Committee. In addition, the lack of preparedness of the officers attending the PAC
meetings also results in frustration for the members of PAC, the Audit Officers and the FBR
itself, PAC further stated.

The PAC took a strong exception of the issue and decided that if this sort of performance is
repeated in future, stern action will be recommended by the PAC. However, in order to proceed
further with the examination of these paras conditionally one month's time has been allowed for
discussing all paras in PAC meetings, before which the FBR may hold DACs which should be
attended by the Chairman or by the Member (Enforcement and Accounting).

These DAC meetings may be completed within two weeks. It was further decided that if the
performance of the FBR is not found up to the mark, PAC will be forced to take stringent action
and the Prime Minister will be apprised of the situation, PAC said. It is hoped that the FBR will
wake up to the situation and work sincerely with the Audit authorities to settle the Audit paras
relating to them. It may also be noted that the Audit Paras will again come up before the PAC in
its meeting on August 22-23, 2011 tentatively, the PAC added.


COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS 17 UNDER THE FEDERAL GOVERNMENT, 2009.

Accounting And Auditing, Paper 1


TIME ALLOWED:
(PART-I)30 MINUTES....MAXIMUM MARKS:20
(PART-II)2 Hours & 30 Minutes..MAXIMUM MARKS:80

NOTE:
(i) First attempt Part-I (MCQ) on separate Answer Sheet which shall be taken back after 30
Minutes.
(ii) Overwriting/cutting of the options/answers will not be given credit.

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Accounting And Auditing, Paper 1
PART-I (MCQ)
(COMPULSORY)





Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

i) Which of the following transactions represent an expense?
(a) The owner withdrew Rs. 1,600 from the business for personal use
(b) Purchased a photocopying machine for Rs. 2,750 cash
(c) Purchased medical supplies for cash from Healthcare Labs. Rs. 1,630
(d) Received a telephone bill amounting to Rs. 550 to be paid within ten days.

ii) Which of the following statements about accounting procedures is not correct?
(a) The journal shows in one place all the information about specific transactions arranged in
chronological order.
(b) A ledger account shows in one place all the information about changes in a specific asset or
liability or owner's equity.
(c) Posting is the process of transferring information from ledger accounts to the journal.
(d) The product of the accounting cycle is the formal financial statements such as balance sheet
and income statement.

iii) Which of the following financial statements reflects the overall financial position of the
business?
(a) Statement of cash flows (b) Income Statement
(c) Balance Sheet (d) Statement of owner's equity

iv) Trial Balance is prepared:
(a) To ensure arithmetical accuracy of accounting records.
(b) To establish complete accuracy of accounting records.
(c) To determine the amounts payable to suppliers for purchase of goods on credit.
(d) To ensure efficient use of resources of the business.

v) The net sales of Fresh Foods were Rs. 200,000 for the current month. If the cost of goods
available for sale was Rs. 180,000 and the gross profit rate was 35%, the ending inventory must
have been:

(a) Rs. 70,000
(b) Rs. 1,30,000
(c) Rs. 50,000
(d) Rs. 63,000


vi) In the accounting cycle:
(a) Closing entries are made before adjusting entries.
(b) Closing entries are made after the adjusting entries.
(c) Adjusting entries are made after financial statements are prepared.
(d) Financial statements are prepared after closing trial balance.
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vii) Which of the following is an intangible asset?
(a) An investment in marketable securities.
(b)Leasehold land.
(c) Loose tools.
(d) Copy rights.

(viii) Expense is recorded in the accounting records when:
(a) Cash is paid
(b) The purchase order is placed with the supplier
(c) Purchases are made
(d) None of these

(ix) The cash basis of accounting:
(a) Is widely used by manufacturing firms.
(b) Is often used by merchandising firms.
(c) Usually results in a larger amount of tax than under accrual basis accounting.
(d) Can not be used in filing income tax returns.

(x) The straight-line method of depreciation:
(a) Generally gives best results because it is easy to apply
(b) Should be use din a period of inflation, because it accumulates the fund for the replacement
of asset at a uniform rate.
(c) Is the best method used for wasting assets.
(d) Ignores fluctuations in the rate of asset usage.

(xi) Which of the following accounts are not closed at the end of an accounting period?
(a) Revenue accounts
(b) Expense accounts
(c) Drawing accounts
(d) Asset accounts

(xii) Under periodic inventory system cost of good sold is determined and recognized in the
books of accounts:
(a) At the time of purchase of goods
(b) At the time of sale of goods
(c) At the end of the year
(d) None of these

(xiii) Which of the following is not a use of working capital?
(a) Repayment of long term debt
(b) Cash dividend declared but not paid
(c) Payment of an account payable
(d) Acquisition of treasury stock.

(xiv) A transaction caused a Rs. 10,000 decrease in both assets and total liabilities. This
transaction could have been:
(a) Purchase of furniture for Rs. 10,000
(b) An asset costing Rs. 10,000 was destroyed by fire (c) Repayment of bank loan Rs. 10,000
(d) Collection of a Rs.10,000 account receivable

(xv) Which ratio indicates a firm's ability to pay current liabilities in the shortest possible time?
(a) Current Ratio
(b) Equity Ratio
(c) Debt Ratio
(d) Quick Ratio

(xvi) If we add the average number of days to turn the inventory over and the average age of
receivables (in number of days), we arrive at:
(a) The company's fiscal period
(b) The sales volume of the business
(c) The company's operating cycle
(d) Nothing meaningful

(xvii) Which of the following is least important in determining the fair market value of a share?
(a) Earnings and dividends per share
(b) Book value per share
(c) The available supply of shares and the demand to purchase the shares.
(d) The par value of share.

(xviii) Financial statements prepared by a business firm are most likely to be:
(a) Fully reliable
(b) Tentative in nature
(c) Relevant for all types of decisions
(d) Always misleading

(xix) One of the following is not an officer of a company:
(a) Share registrar
(b) Controller
(c) Secretary
(d) Treasurer

(xx) A deficit appears on the balance sheet:
(a) Among the assets
(b) As a deduction from total paid-up capital
(c) Among the liabilities
(d) None of these




Accounting And Auditing, Paper 1
PART-II


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NOTE:
(i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY THREE questions from PART-II including Question No.2 which is
Compulsory. Q.No.2 carries 30 Marks all other questions carry 25 Marks each.
(iii) Extra attempt of any question or any part of the attempted question will not be considered.


Q.2. Write short notes on the followings: (3 each)
i) What is a compound journal entry?
ii) Define subsidiary ledger.
iii) Identify two major causes of depreciation on plant assets.
Iv) What is meant by statement of cash flows?
v) Briefly explain the perpetual inventory system.
vi) State the principle of realization,
vii) What do you understand by realization account?
(viii) Describe the term accelerated depreciation,
ix) What do you understand by limited partnership?
(x) Define closing entries and give two examples.

Q.3. Complete the 2007 balance sheet for Premier Industries using the information that follows
it. (25)

Premier Industries
Balance Sheet at December 31, 2007


Cash...............................Rs.30,000
Marketable securities.......Rs.25,000
Accounts receivable...............??
Inventories...........................??
Net fixed assets....................??


Accounts Payable.........Rs. 120,000
Notes Payable.................... ??
Accruals .....................Rs. 20,000
Long-term debt..................??
Stockholders' equity.....Rs. 600,000


The following financial data for 2007 are also available:
1) Sales totaled Rs. 1,800,000
2) The gross profit margin was 25 percent
3) Inventory turnover was 6.0.
4) There are 360 days in the year.
5) The average collection period was 40 days.
6) The current ratio was 1.60.
7) The total asset turnover ratio was 1 .20.
8) The debt ratio was 60 percent.

Q.4. The cash balance, November 30, 2007 is Rs. 30,000. Sales proceeds are collected as
follows: 75% month of sale, 15% second month and 10% third month. (25)


Raleigh Company
Budgeted Income Statement for the Month Ended
December 3 1 , 2007 (in thousands)

Sales............................................. ...Rs.300
Inventory, November 30....................Rs.5o
Purchases......................................... Rs.190
Cost of goods available for sale..........Rs.240
Inventory, December 31...................Rs.40
Cost of goods sold............................Rs.200
Gross margin...................................Rs.100

Operating expenses
Wages............................................R s.36
Utilities......................................... ..Rs.5
Advertising.....................................Rs .10
Depreciation...................................Re. 1
Office expenses..............................Rs.4
Insurance and property taxes..........Re.1
Total Operating Expenses................Rs.57
Operating Income..........................Rs.43

Account receivable are Rs. 43,000 on November 30, 2007, consisting of Rs. 16,000 from
October sales and Rs.27,000 from November Sales.
Accounts payable on November 30, 2007 are Rs. 150,000. Raleigh Company pays 35% of
purchases during the month of purchase and the remainder during the following month. All
operating expenses requiring cash are paid during the month of recognition. Insurance and
property taxes are paid annually in December, however.

Required: Prepare a cash budget for December.

Q.5. Saeed and Rasheed carried on business in partnership. On 31st December 2007 Saeed
retired.Their Balance Sheet at that date was as follows

Liabilities and Capital ........Rs......................Assets...............Rs.
Accounts Payable...10,000...............Land and Building.. 5,000
Notes Payable..8,000..................Plant and Machinery.. 12,000
Saeed - Capital Account21,000.................Loose Tools. 4,000
Rasheed - Capital Account.14,000.................Patterns and Models.2,000
.................................................. .................Inventory15,000
.................................................. .................Accounts Receivable11,000
.................................................. ................Notes Receivable2,500
.................................................. ...............Cash.1,500

Profits and Losses were shared in the proportions of Saeed two-thirds, and Rasheed one-third.
Rasheed agreed to take over the business on the following terms:-
The Land and Building were to be taken over by Saeed at the amount stated in the Balance
Sheet, and Rasheed was to rent the premises at Rs. 250 per annum. Revaluations were to be
made which resulted as follows:-
Plant and Machinery, Rs. 10,000; Loose Tools, Rs. 4,400; Patterns and Models, Rs. 1,800; and
Inventory, Rs. 12,000.
Saeed agreed to allow the amount due to him (Less Rs. 300 which was to be paid to him in cash)
to remain as a loan to Rasheed at 5 percent interest. Required: Make necessary Journal entries to
give effect to the above transactions and prepare Rasheed's Balance Sheet.

Q.6. The following is the Trial Balance at 30th June 2008 of the L.Y. Manufacturing Company,
Limited:-
(Rupces in thousands) (25)
.................................................. ......Rs......................Rs.
Inventory, 1s1 July, 2007-...7,500
Sales-......35,000
Purchases...24,500
Productive Wages -.....5,000
Discounts...700...... 500
Salaries...750
Rent...495
Genera! Expenses..1,705
Profit and Loss Account, 1st July, 2007........1503
Interim Dividend paid, February 2008....900
Share Capital - 1,000 shares of Rs. 10 each fully paid-10,000
Accounts Receivable and Accounts Payable..3,750...1,750
Plant and Machinery........2,900
Cash in hand and at Bank.1,620
Reserve-................1,550
Loan to Managing Director..325
Bad Debts-..158 '

Adjustments:
(1) Depreciate Machinery at 10% per annum.
(2) Reserve 4% discount on Accounts Receivable.
(3) Allow 2% discount on Accounts Payable.
(4) One Month's Rent at Rs. 45 per month was due on 30th June, 2008.
(5) Reserve 5% for bad and doubtful debts.
(6) Inventory on 30th June 2008 was Rs. 8,200.

Required: Trading and Profit and Loss Account for the year ended 30th June 2008, and the
Balance Sheet as on that date.






FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS 17 UNDER THE FEDERAL GOVERNMENT, 2009.

Accounting And Auditing, Paper 2

TIME ALLOWED:
(PART-I)30 MINUTES....MAXIMUM MARKS:20
(PART-II)2 Hours & 30 Minutes..MAXIMUM MARKS:80

NOTE:
(i) First attempt Part-I (MCQ) on separate Answer Sheet which shall be taken back after 30
Minutes.
(ii) Overwriting/cutting of the options/answers will not be given credit.


Accounting And Auditing, Paper 2
PART-I (MCQ)
(COMPULSORY)




Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

(i) Audit programme is prepared by:
a) Audit Staff
b) Chief Accountant
c) Directors
d) Audit Management
e) None of these

(ii) Verification is carried out for:
a) Closing Stock
b) Rent Income
c) Dividend Received
d) Wages and Salaries
e) None of these

(iii) Retiring auditor can be appointed at:
a) Statutory Meeting
b) AGM
c) Directors Meeting
d) Creditors Meeting
e) None of these

(iv) Unqualified report is favorable for:
a. Management

b. Creditors
c. Debtors
d. Employees
e. None of these

(v) Normally test checking is adopted in case of:
a) Continuous Audit
b) Final Audit
c) Interim Audit
d) Special Audit
e) None of these

(vi) In partnership minimum number of members is:
a) 2
b) 3
c) 4
d) 5
e) 20

(vii) In Public Ltd. Company, minimum number of members is:
a) 2
b) 3
c) 5
d) 7
e) 10

(viii) Short term finance can be arranged through:
a) Sales of Debentures
b) Sales of Shares
c) Bank Loan
d) Debtors Collection
e) None of these

(ix) Statutory meeting is necessary in case of:
a) Private Ltd. Co.
b) Public Ltd. Co.
c) Partnership
d) Cooperative Society
e) None of these

(x) Current Companies Ordinance is that of:
a) 1932
b) 1984
c) 2001
d) 2002
e) 2003

(xi) The Addition of Material and Labour is called:
a) Conversion Cost
b) Prime Cost
c) Financial Cost
d) Absorption Cost
e) None of these

(xii) Expenses can be called as:
a) Expired Cost
b) Project Cost
c) Prime Cost
d) Conversion Cost
e) None of these

(xiii) EOQ is adopted to have efficient:
a) Material Management
b) Labour Management
c) FOH Management
d) Selling Expenses Control
e) None of these

(xiv) Which of the following is fixed cost:
a) Rent
b) Income Tax
c) Repair
d) Electricity
e) Insurance

(xv) The statement prepared under process costing is called:
a) Cost of Goods Sold statement
b) Income Statement
c) Cost of Production Report
d) Variance statement
e) None of these

(xvi) Current Income Tax Ordinance is that of:
a) 1990
b) 2001
c) 2002
d) 2003
e) 2008

(xvii) Which of the following will be considered as capital expenditure?
a) Material Expense
b) Machinery Purchased
c) Labout Paid
d) FOH applied
e) Income Tax Paid

(xviii) Which of the following is exempted from tax at present?
a) Agricultural Income
b) Banks Profits
c) Salary Income
d) Profit of Public Ltd. Co.
e) Profit of Private Ltd. Co.

(xix) If Income year of a salaried person ends on 30th June, 2008, then tax year would be:
a) 2007-08
b) 2008-09
c) 2009-10
d) 2008
e) None of these

(xx) Which of the following can be adjusted against Income Tax Liability:
a) Withholding Tax on Telephone Bills
b) Excise Duty Paid
c) Custom Duty Paid
d) Sales tax paid
e) Trade tax paid


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Accounting And Auditing, Paper 2
PART-II


NOTE: cousin
(i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY FOUR questions from PART-II selecing ONE question from each section
I,II,III,IV. All Questions carry equal marks.
(iii) Extra attempt of any question or any part of the attempted question will not be considered.
(iv) Use of Simple Calculartor is allowed.


Section-I (Cost Accounting)




SECTION-A (Cost Accounting)

Q.2. ABC company made the following data available from its accounting records and reports:
(i) Rs. 60,000 estimated Factory Overhead
(ii) 20,000 estimated direct Labour hours
(iii) Rs. 3 pre-determined Factory overhead rate.
(iv) One third of rate is variable cost oriented.
(v) During the year, the company worked on 21,000 direct Labour hours.
(vi) Actual Factory overhead expenses for the year were Rs. 63,100.
You are required to calculate spending and idle capacity variances.

Q.3. The records of MN Company show the following information for the year ending 30th June,
2008.

1. Material Used----------------------Rs. 880,000
2. Direct Labour--------------------------580,000
3. Indirect Labour--------------------------92,000
4. Light and Power--------------------------8,520
5. Depreciation----- ------------------------9,400
6. Repair of Machinery--------------------- 11,600
7. Misc. Factory overhead------- ---------- 58,000
8. Opening W-I-P inventory-----------------82,400
9. Opening Finished Goods inventory-------- 68,600
10. Ending Wip inventory---------------------85,000
11. Ending Finished Goods inventory---------- 63,000

During the year 36,000 units were completed. You are required to calculate:
(a) A cost of Goods Sold Statement for the year ending on 30th June, 2008.
(b) The unit cost of Goods Manufactured
(c) The amount of over or under applied factory overhead if the company applies factory
overhead on the basis of 30% of direct labour cost.

SECTION-B (Auditing)

Q.4. What is meant by a Qualified Report? Give specimen of such report after the completion of
annual audit of a Public Limited Company. (20)

Q.5. Under what circumstances an auditor can be held liable for Negligence? Support your
answer with relevant legal cases. (20)

SECTION-C (Income Tax)

Q.6. Explain the legal provisions governing the exemption of following items from Income Tax:-
(20)
(i) Pension
(ii) Facility of Accommodation
(iii) Income of Trusts
(iv) Income of Modarba

Q.7. The following information is available in respect of Mr. Hassan for Tax year ending on 30th
June, 2008. (20)
(i) Salaries----------------------------------------------------Rs. 300,000
(ii) Income from Agriculture-----------------------------------15,000
(iii) Income from Poultry Farm---------------------------------12,000
(iv) Payments to workers Welfare fund-------------------------5,000
(v) Entertainment bills reimbursed ----------------------------10,000
(vi) Telephone bills reimbursed----------------------------------6,000
(vii) Efficiency Honorarium----------------------- --------------10,000
(viii) Profit on sale of inherited house----------------------------14,000
(ix) Over time Payments received----------------- --------------7,000
(x) Remuneration for literary works------------------------------9,000
(xi) Dividend income from private company----------------------17,000
(xii) Zakar Paid-------------------------------------- -----------3,000
You are required to calculate taxable income of Mr. Hassan for year Ending on 30th June, 2008.

SECTION-D (Business Organizations and Finance)

Q.8. Explain the legal procedure in respect of establishment of a Public Limited Company. (20)

Q.9. Explain the duties and functions of a Financial Manager of a large Scale Business. (20)
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