Paper of Accountancy & Auditing-I&II of CSS exams 2017. Past papers of CSS 2017
ACCOUNTANCY AND AUDITING, PAPER-I
Q. 3. (A) A corporation had stockholders’ equity on January 1 as follows:
Common Stock, $10 par value, 1,500,000 shares authorized, 600,000 shares issued;
Paid-in Capital in Excess of Par Value, Common Stock, $1,000,000;
Retained Earnings, $2,500,000.
Required: Prepare journal entries to record the following transactions:
Feb. 15 The board of directors declared a 10% stock dividend to stock holders of record on
March 1, to be issued on April 15. The stock was trading at $8 per share prior to the dividend.
March 30 Sold 100,000 shares of common stock for $11 per share. March 31 Issued the stock dividend.
(B) Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $42,300. The machine’s useful life is estimated at 10 years, or 363,000
units of product, with a $6,000 salvage value. During its second year, the machine produces 35,000 units of product. Required: Determine the machine’s second-year depreciation under the straight-line method.
ACCOUNTANCY AND AUDITING, PAPER-II
Q. No. 2. What system of Internal check would you recommend for a large manufacturing
company to prevent fraud in connection with the purchase of raw material on credit
Q. No. 3. A fraud has been committed in a business. Being a Manager of Accounts you are asked
by the authorities to take up investigative measures and steps to extract the fraudulent matter. Discuss the measures and steps you will take in this regard.
Q. No. 4. What is meant by Auditor’s Report? Describe the key characteristics of a good audit report, along with the significance of Auditor’s report to show the transparent picture of the company.