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The standards are principles on which practice of internal auditing is based. They are part of IPPF and applicable to every environment and organization. Whether services are in-sourced or outsourced, these standards must be understood and appropriately applied by the internal audit professionals.

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Benchmark rate is the rate of interest levied under income tax ordinance 2001 for the treatment of loan. The said loan has been taken to the employee by the employer and will be chargeable in various circumstances under the head “income from salary”.

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Working capital is typically defined as current assets less current liabilities.  In banking, working capital is normally defined more narrowly as current assets (excluding cash) less current liabilities (excluding interest-bearing debt).

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Farzan Enterprises is an FMCG company. Their board consists of 4 members whereas they also have quite a few experienced senior management staff. The company finally agreed to hire A. S. Sharif & Co. (an internal audit firm). Who will decide the nature of work related to assurance and consulting services?

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Mr. A worked for an organization in Pakistan for the first 08 months of the tax year and remaining 04 months outside Pakistan i.e. in Saudi Arabia (KSA). His monthly salary in Pakistan and KSA is PKR 100,000/ per month and SR 6,000 respectively. Mr. A’s family stayed in KSA throughout that year.

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