SUGGESTED SOLUTIONS/ ANSWERS – FALL 2019 EXAMINATIONS 1 of 8

AUDIT & ASSURANCE [S2] – STRATEGIC LEVEL-1

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Question No. 1
(a) Audit risks Auditor’s responses 12
(i) Hi-Tech Ltd is a new client for ENH & Co. As ENH & Co should ensure that they
the team is not so familiar with the accounting have a suitably experienced team.
policies, transactions and balances of Hi-Tech, Also, adequate time should be
there will be an increased detection risk on the allocated for team members to obtain
audit. an understanding of the company and
the risks of material misstatement.
(ii) Hi-Tech purchases their goods from China and The audit team should undertake
the goods are in transit for two weeks. At the detailed cut-off testing of goods in
year end there is a risk that the cut-off of transit from the suppliers in China to
inventory, purchases and payables may not be ensure that the cut-off is complete and
accurate. The company correctly accounts for accurate.
goods when they receive them. Therefore, at
the year-end only goods which have been
received into the warehouse is included in the
inventory balance and a respective payables
balance recognised.
(iii) Inventory could be under or overstated if the The completeness of the continuous
continuous (perpetual) inventory counts are not (perpetual) inventory counts should be
complete and the inventory records are not reviewed. In addition, the level of
accurately updated for the adjustments due to adjustments for Goods in Transit
Goods in Transit. made to inventory should be
considered to assess whether reliance
on the inventory records will be
acceptable.
(iv) A sales-related bonus scheme has been Increased sales cut-off testing will be
introduced in the year; this may lead to sales performed along with a review of any
cut-off errors with employees aiming to post year-end cancellations of
maximise their current year bonus. contracts as they may indicate cut-off
errors.
(v) Receivables are considerably higher than the Extended post year-end cash receipts
prior year and there are concerns about the testing and a review of the aged
creditworthiness of some customers. receivables ledger to be performed to
There is a risk that some receivables may be assess valuation. Also consider the
overvalued as they are not recoverable. adequacy of any allowance for
receivables.
In addition, receivables could be overstated as External confirmation of receivables to
a result of the bonus scheme; some of the confirm that customers exist and
customers might have signed up for contracts represent valid amounts due.
which may not actually exist.
(vi) Hi-Tech has a policy of revaluing its land and Discuss with management the
buildings and these valuations have been process adopted for undertaking the
updated during the year. valuation, including whether the whole
Property, plant and equipment could be under class of assets was revalued and if
or overvalued if the recent valuation has not the valuation was undertaken by an
been carried out in accordance with IAS 16 expert. This process should be
Property, Plant and Equipment and adequate reviewed for compliance with IAS 16.
disclosures may not have been made in the Review the disclosures of the
financial statements. revaluation in the financial statements
for compliance with IAS 16.

DISCLAIMER: These suggested answers including write-ups, tables, charts, diagrams, graphs, figures etc., are uploaded for the use of ICMA Pakistan members, students and faculty members only. No part of it can be reproduced,
stored in a retrieval system or transmitted in any physical/ or electronic form or by any other means including electronic, mechanical, photocopying, recording or otherwise without prior written permission of the ICMA Pakistan. The
suggested answers provided on and made available through the ICMA Pakistan’s website may only be referred, relied upon or treated as general guidelines and NOT a substitute for professional advice. The ICMA Pakistan has
provided suggested answers on the basis of certain assumptions for general guidance of the students and there may be other possible answers/ solutions based on different assumptions and understanding. The ICMA Pakistan and its
Council Members, Examiners or Employees shall not be liable in respect of any damages, losses, claims and expenses arising out of using contents of these suggested answers. It is clarified that the ICMA Pakistan shall not be liable
to attend or receive any comments, observations or critiques related to the suggested answers.
 SUGGESTED SOLUTIONS/ ANSWERS – FALL 2019 EXAMINATIONS 2 of 8
AUDIT & ASSURANCE [S2] – STRATEGIC LEVEL-1

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Question No. 2
(a) (i) Unreliable Responses: 06
When the auditor concludes that a response is unreliable, the auditor may need to revise
the assessment of the risks of material misstatement at the assertion level and modify
planned audit procedures accordingly, in accordance with ISA 315 (Revised). For example,
an unreliable response may indicate a fraud risk factor that requires evaluation in
accordance with ISA 240.
(ii) Non-Responses:
Examples of alternative audit procedures the auditor may perform include:
For accounts receivable balances – examining specific subsequent cash receipts, shipping
documentation, and sales near the period end.
For accounts payable balances – examining subsequent cash disbursements or
correspondence from third parties, and other records, such as goods received notes.
(iii) When a Response to a Positive Confirmation Request Is Necessary to Obtain
Sufficient Appropriate Audit Evidence:
In certain circumstances, the auditor may identify an assessed risk of material misstatement
at the assertion level for which a response to a positive confirmation request is necessary to
obtain sufficient appropriate audit evidence. Such circumstances may include where:
The information available to corroborate management's assertion(s) is only available outside
the entity.
Specific fraud risk factors, such as the risk of management override of controls, or the risk of
collusion which can involve employee(s) and/or management, prevent the auditor from
relying on evidence from the entity.

(b) The auditor shall not use negative confirmation requests as the sole substantive audit procedure 04
to address an assessed risk of material misstatement at the assertion level unless all of the
following are present:
 The auditor has assessed the risk of material misstatement as low and has obtained sufficient
appropriate audit evidence regarding the operating effectiveness of controls relevant to the
assertion;
 The population of items subject to negative confirmation procedures comprises a large
number of small, homogeneous account balances, transactions or conditions;
 A very low exception rate is expected; and
 The auditor is not aware of circumstances or conditions that would cause recipients of
negative confirmation requests to disregard such requests.

(c) Receivables substantive procedures

(i) Accuracy, valuation and allocation 03
 Review the after date cash receipts and follow through pre year-end receivable
balances.
 Inspect the aged receivables report to identify any slow moving balances, discuss these
with the credit control manager to assess whether an allowance or write down is
necessary.
 For any slow moving/aged balances review customer correspondence to assess
whether there are any invoices in dispute.
 Review board minutes of Zeltax cement Limited to assess whether there are any
material disputed receivables.

DISCLAIMER: These suggested answers including write-ups, tables, charts, diagrams, graphs, figures etc., are uploaded for the use of ICMA Pakistan members, students and faculty members only. No part of it can be reproduced,
stored in a retrieval system or transmitted in any physical/ or electronic form or by any other means including electronic, mechanical, photocopying, recording or otherwise without prior written permission of the ICMA Pakistan. The
suggested answers provided on and made available through the ICMA Pakistan’s website may only be referred, relied upon or treated as general guidelines and NOT a substitute for professional advice. The ICMA Pakistan has
provided suggested answers on the basis of certain assumptions for general guidance of the students and there may be other possible answers/ solutions based on different assumptions and understanding. The ICMA Pakistan and its
Council Members, Examiners or Employees shall not be liable in respect of any damages, losses, claims and expenses arising out of using contents of these suggested answers. It is clarified that the ICMA Pakistan shall not be liable
to attend or receive any comments, observations or critiques related to the suggested answers.
 SUGGESTED SOLUTIONS/ ANSWERS – FALL 2019 EXAMINATIONS 3 of 8
AUDIT & ASSURANCE [S2] – STRATEGIC LEVEL-1

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(ii) Completeness 03
 Select a sample of goods despatched notes from before the year end, agree to sales
invoices and to inclusion in the sales
 ledger and year-end receivables ledger
 Agree the total of individual sales ledger accounts to the aged receivables listing and to
the trial balance.
 Obtain the prior year aged receivables listing and for significant balances compare to the
current year receivables listing for inclusion and amount due. Discuss with management
any missing receivables or significantly lower balances.
 Review the sales ledger for any credit balances and discuss with management whether
these should be reclassified as payables.

Question No. 3
(a) "Prospective financial information" means financial information based on assumptions about 06
events that may occur in the future and possible actions by an entity. It is highly subjective in
nature and its preparation requires the exercise of considerable judgment. Prospective financial
information can be in the form of a forecast, a projection or a combination of both, for example, a
one year forecast plus a five year projection.
Prospective financial information relates to events and actions that have not yet occurred and
may not occur. While evidence may be available to support the assumptions on which the
prospective financial information is based, such evidence is itself generally future oriented and,
therefore, speculative in nature, as distinct from the evidence ordinarily available in the audit of
historical financial information. The auditor is, therefore, not in a position to express an opinion as
to whether the results shown in the prospective financial information will be achieved.
Based on the types of evidence available in assessing the assumptions on which the prospective
financial information is based, it may be difficult for the auditor to obtain a level of satisfaction
sufficient to provide a positive expression of opinion that the assumptions are free of material
misstatement. Consequently, in ISAE 3400, when reporting on the reasonableness of
management's assumptions the auditor provides only a moderate level of assurance.
However, when in the auditor's judgment an appropriate level of satisfaction has been obtained,
the auditor is not precluded from expressing positive assurance regarding the assumptions.

(b) Service auditor — A practitioner who, at the request of the service organization, provides an 04
assurance report on controls at a service organization.
Service organization — A third-party organization (or segment of a third-party organization) that
provides services to user entities that are likely to be relevant to user entities' internal control as it
relates to financial reporting.

Question No. 4
(a) Following are the responsibilities of an audit partner in performance of an audit engagement: 07
Direction, Supervision and Performance
The engagement partner shall take responsibility for:
(i) The direction, supervision and performance of the audit engagement in compliance with
professional standards and applicable legal and regulatory requirements; and
(ii) The auditor's report being appropriate in the circumstances.

DISCLAIMER: These suggested answers including write-ups, tables, charts, diagrams, graphs, figures etc., are uploaded for the use of ICMA Pakistan members, students and faculty members only. No part of it can be reproduced,
stored in a retrieval system or transmitted in any physical/ or electronic form or by any other means including electronic, mechanical, photocopying, recording or otherwise without prior written permission of the ICMA Pakistan. The
suggested answers provided on and made available through the ICMA Pakistan’s website may only be referred, relied upon or treated as general guidelines and NOT a substitute for professional advice. The ICMA Pakistan has
provided suggested answers on the basis of certain assumptions for general guidance of the students and there may be other possible answers/ solutions based on different assumptions and understanding. The ICMA Pakistan and its
Council Members, Examiners or Employees shall not be liable in respect of any damages, losses, claims and expenses arising out of using contents of these suggested answers. It is clarified that the ICMA Pakistan shall not be liable
to attend or receive any comments, observations or critiques related to the suggested answers.
 SUGGESTED SOLUTIONS/ ANSWERS – FALL 2019 EXAMINATIONS 4 of 8
AUDIT & ASSURANCE [S2] – STRATEGIC LEVEL-1

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Reviews
The engagement partner shall take responsibility for reviews being performed in accordance with
the firm's review policies and procedures.
On or before the date of the auditor's report, the engagement partner shall, through a review of
the audit documentation and discussion with the engagement team, be satisfied that sufficient
appropriate audit evidence has been obtained to support the conclusions reached and for the
auditor's report to be issued.
Consultation
The engagement partner shall:
(i) Take responsibility for the engagement team undertaking appropriate consultation on
difficult or contentious matters;
(ii) Be satisfied that members of the engagement team have undertaken appropriate
consultation during the course of the engagement, both within the engagement team and
between the engagement team and others at the appropriate level within or outside the firm;
(iii) Be satisfied that the nature and scope of, and conclusions resulting from, such consultations
are agreed with the party consulted; and
(iv) Determine that conclusions resulting from such consultations have been implemented.

(b) If, in exceptional circumstances, the auditor performs new or additional audit procedures or draws 04
new conclusions after the date of the auditor's report, the auditor shall document:
(i) The circumstances encountered;

(ii) The new or additional audit procedures performed, audit evidence obtained, and
conclusions reached, and their effect on the auditor's report; and

(iii) When and by whom the resulting changes to audit documentation were made and
reviewed.
(c)
(i) Communicating Identified or Suspected Non-Compliance with Those Charged with 04
Governance
Unless all of those charged with governance are involved in management of the entity, and
therefore are aware of matters involving identified or suspected non-compliance already
communicated by the auditor, the auditor shall communicate, unless prohibited by law or
regulation, with those charged with governance matters involving non-compliance with laws and
regulations that come to the auditor's attention during the course of the audit, other than when the
matters are clearly inconsequential.
If, in the auditor's judgment, the non-compliance is believed to be intentional and material, the
auditor shall communicate the matter with those charged with governance as soon as practicable.
If the auditor suspects that management or those charged with governance are involved in non-
compliance, the auditor shall communicate the matter to the next higher level of authority at the
entity, if it exists, such as an audit committee or supervisory board. Where no higher authority
exists, or if the auditor believes that the communication may not be acted upon or is unsure as to
the person to whom to report, the auditor shall consider the need to obtain legal advice.
(ii) Potential Implications of Identified or Suspected Non-Compliance for the Auditor's Report 06
If the auditor concludes that the identified or suspected non-compliance has a material effect on
the financial statements, and has not been adequately reflected in the financial statements, the
auditor shall, in accordance with ISA 705 (Revised), express a qualified opinion or an adverse
opinion on the financial statements.
If the auditor is precluded by management or those charged with governance from obtaining
sufficient appropriate audit evidence to evaluate whether non-compliance that may be material to

DISCLAIMER: These suggested answers including write-ups, tables, charts, diagrams, graphs, figures etc., are uploaded for the use of ICMA Pakistan members, students and faculty members only. No part of it can be reproduced,
stored in a retrieval system or transmitted in any physical/ or electronic form or by any other means including electronic, mechanical, photocopying, recording or otherwise without prior written permission of the ICMA Pakistan. The
suggested answers provided on and made available through the ICMA Pakistan’s website may only be referred, relied upon or treated as general guidelines and NOT a substitute for professional advice. The ICMA Pakistan has
provided suggested answers on the basis of certain assumptions for general guidance of the students and there may be other possible answers/ solutions based on different assumptions and understanding. The ICMA Pakistan and its
Council Members, Examiners or Employees shall not be liable in respect of any damages, losses, claims and expenses arising out of using contents of these suggested answers. It is clarified that the ICMA Pakistan shall not be liable
to attend or receive any comments, observations or critiques related to the suggested answers.
 SUGGESTED SOLUTIONS/ ANSWERS – FALL 2019 EXAMINATIONS 5 of 8
AUDIT & ASSURANCE [S2] – STRATEGIC LEVEL-1

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the financial statements has, or is likely to have, occurred, the auditor shall express a qualified
opinion or disclaim an opinion on the financial statements on the basis of a limitation on the scope
of the audit in accordance with ISA 705 (Revised).
If the auditor is unable to determine whether non-compliance has occurred because of limitations
imposed by the circumstances rather than by management or those charged with governance, the
auditor shall evaluate the effect on the auditor's opinion in accordance with ISA 705 (Revised).
Reporting Identified or Suspected Non-Compliance to an Appropriate Authority outside the
Entity
If the auditor has identified or suspects non-compliance with laws and regulations, the auditor
shall determine whether law, regulation or relevant ethical requirements:
 Require the auditor to report to an appropriate authority outside the entity.
 Establish responsibilities under which reporting to an appropriate authority outside the entity
may be appropriate in the circumstances.

Question No. 5

(a) -If supplementary information that is not required by the applicable financial reporting framework 06
is presented with the audited financial statements, the auditor shall evaluate whether
supplementary information is nevertheless an integral part of the financial statements due to its
nature or how it is presented When it is an integral part of the financial statements, the
supplementary information shall be covered by the auditor's opinion
-If supplementary information that is not required by the applicable financial reporting framework
is not considered an integral part of the audited financial statements, the auditor shall evaluate
whether such supplementary information is presented in a way that sufficiently and clearly
differentiates it from the audited financial statements. If this is not the case, then the auditor shall
ask management to change how the unaudited supplementary information is presented. If
management refuses to do so, the auditor shall identify the unaudited supplementary information
and explain in the auditor's report that such supplementary information has not been audited.

(b) Conditions require Modification in Auditors Opinion: 06

Opening Balances
If the auditor is unable to obtain sufficient appropriate audit evidence regarding the opening
balances, the auditor shall express a qualified opinion or disclaim an opinion on the financial
statements, as appropriate, in accordance with ISA 705
If the auditor concludes that the opening balances contain a misstatement that materially affects
the current period's financial statements, and the effect of the misstatement is not appropriately
accounted for or not adequately presented or disclosed, the auditor shall express a qualified
opinion or an adverse opinion, as appropriate, in accordance with ISA 705.
Consistency of Accounting Policies
If the auditor concludes that:
(i) the current period's accounting policies are not consistently applied in relation to opening
balances in accordance with the applicable financial reporting framework; or
(ii) a change in accounting policies is not appropriately accounted for or not adequately
presented or disclosed in accordance with the applicable financial reporting framework,
the auditor shall express a qualified opinion or an adverse opinion as appropriate in accordance
with ISA 705 (Revised).
Modification to the Opinion in the Predecessor Auditor's Report:
If the predecessor auditor's opinion regarding the prior period's financial statements included a
modification to the auditor's opinion that remains relevant and material to the current period's
financial statements, the auditor shall modify the auditor's opinion on the current period's financial
statements in accordance with ISA 705 (Revised) and ISA 710.
DISCLAIMER: These suggested answers including write-ups, tables, charts, diagrams, graphs, figures etc., are uploaded for the use of ICMA Pakistan members, students and faculty members only. No part of it can be reproduced,
stored in a retrieval system or transmitted in any physical/ or electronic form or by any other means including electronic, mechanical, photocopying, recording or otherwise without prior written permission of the ICMA Pakistan. The
suggested answers provided on and made available through the ICMA Pakistan’s website may only be referred, relied upon or treated as general guidelines and NOT a substitute for professional advice. The ICMA Pakistan has
provided suggested answers on the basis of certain assumptions for general guidance of the students and there may be other possible answers/ solutions based on different assumptions and understanding. The ICMA Pakistan and its
Council Members, Examiners or Employees shall not be liable in respect of any damages, losses, claims and expenses arising out of using contents of these suggested answers. It is clarified that the ICMA Pakistan shall not be liable
to attend or receive any comments, observations or critiques related to the suggested answers.
 SUGGESTED SOLUTIONS/ ANSWERS – FALL 2019 EXAMINATIONS 6 of 8
AUDIT & ASSURANCE [S2] – STRATEGIC LEVEL-1

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(c)
(i) Procedures to be performed if Previously Unidentified or Undisclosed Related Parties or 05
Significant Related Party Transactions identified:
If the auditor identifies related parties or significant related party transactions that management
has not previously identified or disclosed to the auditor, the auditor shall:
1- Promptly communicate the relevant information to the other members of the engagement
team;
2- Where the applicable financial reporting framework establishes related party requirements:

Request management to identify all transactions with the newly identified related parties
for the auditor's further evaluation; and
 Inquire as to why the entity's controls over related party relationships and transactions
failed to enable the identification or disclosure of the related party relationships or
transactions;
3- Perform appropriate substantive audit procedures relating to such newly identified related
parties or significant related party transactions;
4- Reconsider the risk that other related parties or significant related party transactions may
exist that management has not previously identified or disclosed to the auditor, and perform
additional audit procedures as necessary; and
5- If the non-disclosure by management appears intentional (and therefore indicative of a risk of
material misstatement due to fraud), evaluate the implications for the audit.
(ii) Procedures to be performed if Significant Related Party Transactions outside the Entity's 04
Normal Course of Business identified:
For identified significant related party transactions outside the entity's normal course of business,
the auditor shall:
1- Inspect the underlying contracts or agreements, if any, and evaluate whether:
 The business rationale (or lack thereof) of the transactions suggests that they may have
been entered into to engage in fraudulent financial reporting or to conceal
misappropriation of assets;
 The terms of the transactions are consistent with management's explanations; and
 The transactions have been appropriately accounted for and disclosed in accordance
with the applicable financial reporting framework; and
2- Obtain audit evidence that the transactions have been appropriately authorized and
approved.

Question No. 6
(a) If the external auditor uses internal auditors to provide direct assistance on the audit, the 05
external auditor shall include in the audit documentation:
The evaluation of the existence and significance of threats to the objectivity of the internal
auditors, and the level of competence of the internal auditors used to provide direct assistance;
The basis for the decision regarding the nature and extent of the work performed by the internal
auditors;
Who reviewed the work performed and the date and extent of that review in accordance with ISA
230;
The written agreements obtained from an authorized representative of the entity and the internal
auditors; and
The working papers prepared by the internal auditors who provided direct assistance on the
audit engagement.
DISCLAIMER: These suggested answers including write-ups, tables, charts, diagrams, graphs, figures etc., are uploaded for the use of ICMA Pakistan members, students and faculty members only. No part of it can be reproduced,
stored in a retrieval system or transmitted in any physical/ or electronic form or by any other means including electronic, mechanical, photocopying, recording or otherwise without prior written permission of the ICMA Pakistan. The
suggested answers provided on and made available through the ICMA Pakistan’s website may only be referred, relied upon or treated as general guidelines and NOT a substitute for professional advice. The ICMA Pakistan has
provided suggested answers on the basis of certain assumptions for general guidance of the students and there may be other possible answers/ solutions based on different assumptions and understanding. The ICMA Pakistan and its
Council Members, Examiners or Employees shall not be liable in respect of any damages, losses, claims and expenses arising out of using contents of these suggested answers. It is clarified that the ICMA Pakistan shall not be liable
to attend or receive any comments, observations or critiques related to the suggested answers.
 SUGGESTED SOLUTIONS/ ANSWERS – FALL 2019 EXAMINATIONS 7 of 8
AUDIT & ASSURANCE [S2] – STRATEGIC LEVEL-1

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(b)
(i) The company shall apply to the Securities and Exchange Commission of Pakistan in the form set 08
out in Appendix I for appointment of cost auditor. The form should include following information:
1. Name of the company together with the address of its registered office and the date of its
incorporation
2. Status of the company
3. Capital structure of the company
4. Principal line(s) of business of the company
5. Proposal for which the Securities and Exchange Commission of Pakistan’s approval is
sought indicating the product for which cost audit is ordered:
(i) The name and address of the cost auditor who is recommended to be appointed
(ii) Whether the proposed cost auditor is a Chartered Accountant within the meaning of
Chartered Accountants Ordinance, 1961(X of 1961) or Cost and Management
Accountant within the meaning of the Cost and Management Accountants Act, 1966
(XVI of 1966) and whether he has a certificate of practice
(iii) The associateship/fellowship No. of the cost auditor
6. Whether the cost auditor is subject to any disqualification under rule 3(3).
7. Remuneration for the cost auditor
8. The financial year or years to be covered by the cost audit
9. Date of the meeting of the directors recommending the name of the cost auditor
10. A certified copy of the resolution passed by the directors of the company sanctioning the
proposal for which the Securities and Exchange Commission of Pakistan’s approval has been
sought
11. Name and address of the previous cost auditor, if any, together with the financial year of the
company which was subjected to cost audit
12. If there is any change in the appointment of cost auditor, the reasons therefore may be
stated
13. Declaration

(ii) Production: 07
 Production in quantities of each type of product under reference.
 Percentage of production of the product under reference in relation to installed capacity. If
there is any shortfall in production as compared to the installed capacity, brief comments as
to the reasons for the shortfall.
 If there is any addition to the production capacity during the year under review or in the
immediately preceding two years, this may also be mentioned.
Overheads:
 The total amounts of the following overheads and a break-up of items (i), (ii) and (iii) below:
(i) Factory overheads.
(ii) Administration overheads.
(iii) Selling and distribution overheads.
(iv) Financial charges.

DISCLAIMER: These suggested answers including write-ups, tables, charts, diagrams, graphs, figures etc., are uploaded for the use of ICMA Pakistan members, students and faculty members only. No part of it can be reproduced,
stored in a retrieval system or transmitted in any physical/ or electronic form or by any other means including electronic, mechanical, photocopying, recording or otherwise without prior written permission of the ICMA Pakistan. The
suggested answers provided on and made available through the ICMA Pakistan’s website may only be referred, relied upon or treated as general guidelines and NOT a substitute for professional advice. The ICMA Pakistan has
provided suggested answers on the basis of certain assumptions for general guidance of the students and there may be other possible answers/ solutions based on different assumptions and understanding. The ICMA Pakistan and its
Council Members, Examiners or Employees shall not be liable in respect of any damages, losses, claims and expenses arising out of using contents of these suggested answers. It is clarified that the ICMA Pakistan shall not be liable
to attend or receive any comments, observations or critiques related to the suggested answers.
 SUGGESTED SOLUTIONS/ ANSWERS – FALL 2019 EXAMINATIONS 8 of 8
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 Reasons for any significant variances in the expenditure incurred against the item, included
in overheads as compared with previous two years.
 The basis of allocation of overheads to cost centres and of absorption to products with brief
comments, if any, on the basis of allocation adopted by the company.
 Cost of packing, if any, of the products under reference to be shown separately with details
to the extent possible.
THE END

DISCLAIMER: These suggested answers including write-ups, tables, charts, diagrams, graphs, figures etc., are uploaded for the use of ICMA Pakistan members, students and faculty members only. No part of it can be reproduced,
stored in a retrieval system or transmitted in any physical/ or electronic form or by any other means including electronic, mechanical, photocopying, recording or otherwise without prior written permission of the ICMA Pakistan. The
suggested answers provided on and made available through the ICMA Pakistan’s website may only be referred, relied upon or treated as general guidelines and NOT a substitute for professional advice. The ICMA Pakistan has
provided suggested answers on the basis of certain assumptions for general guidance of the students and there may be other possible answers/ solutions based on different assumptions and understanding. The ICMA Pakistan and its
Council Members, Examiners or Employees shall not be liable in respect of any damages, losses, claims and expenses arising out of using contents of these suggested answers. It is clarified that the ICMA Pakistan shall not be liable
to attend or receive any comments, observations or critiques related to the suggested answers.