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Principles Of Auditing Of Agribusiness Enterprises Question Paper

Principles Of Auditing Of Agribusiness Enterprises

Course:Bachelor Of Science In Agribusiness Management

Institution: Kenyatta University question papers

Exam Year:2010

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2009/2010
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
SCIENCE (AGRIBUSINESS MANAGEMENT AND TRADE)
KBT 105: PRINCIPLES OF AUDITING OF AGRIBUSINESS ENTERPRISES
DATE: WEDNESDAY, 28TH JULY 2010 TIME: 2.00 P.M. - 4.00 P.M.

INSTRUCTIONS: Answer Question ONE and any other TWO.

1.
a)
Distinguish the difference between the following:

i)
Continuous and interim audit in agribusiness

(2 marks)

ii)
Procedural and management audit in agribusiness
(2 marks)

iii)
True and fair view vs true and correct view of a company’s

state of affairs.

(2 marks)

b)
State five steps that may be used to reduce individual auditor’s

exposure to audit risks.

(5 marks)

c)
What are the guidelines that ensures that an auditor portrays an

independent attitude during his/her examination so as to achieve

objective reporting.

(4 marks)

d)
State and briefly explain anauditor’s responsibility with regard to

the detection of errors and fraud in the operations of agribusiness (5 marks)

e)
Explain any five actions an auditor can take to minimize his liabilities.

(5 marks)

f)
Identify and explain three key elements of a good internal control

system of an agribusiness.

(5 marks)

g)
Give five advantages of good internal control systems in agribusiness.

(5 marks)

h)
Under what circumstances can an auditor be held liable to third parties?

(5 marks)

Page 1 of 2

2.
a)
Discuss the various features of an internal control system.
(5 marks)

b)
Explain how five of the most important types of internal control

systems assist in detecting errors and fraud in an agribusiness.
(10 marks)

3.
a)
Explain the procedure an auditor should follow when accepting an

agribusiness audit job.

(10 marks)

b)
State the areas that an internal audit normally operates to ensure that

a company’s assets and efficient operations are safeguarded.
(5 marks)

4.
a)
Identify and explain the principles and auditor uses when auditing

a balance sheet.

(10 marks)

b)
State the functions that should be segregated to minimize errors

and fraud in agribusiness.

(5 marks)

5.
a)
Identify and explain the types of programmed controls that are designed

in a computer based system.

(10 marks)

b)
Explain the ways in which an auditor uses a computer to assist in

carrying out his audit work.

(5 marks)

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