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Principles And Practitices Of Auditng Question Paper

Principles And Practitices Of Auditng

Course:Bachelor Of Business Administration

Institution: Kenyatta University question papers

Exam Year:2010

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2010/2011
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF BUSINESS
BAC 303: PRINCIPLES AND PRACTITICES OF AUDITNG
DATE: FRIDAY 26TH NOVEMBER 2010

TIME: 11.00 A.M – 1.00 P.M

INSTRUCTIONS:
Answer question one and any other two questions in section B
Section A
1. a) With reference to the companies act, explain
i) The way in which an auditor may be appointed.
ii) The duties of an auditor.
iii) The rights of an auditor.

(12 marks)
b)
Briefly explain the main and subsidiaries objectives of auditing.
(8 marks)
c)
State and explain the prescribed circumstances under which an auditor may qualify his

report.

(6 marks)
d)
Differentiate between statutory and pirate audit

(4 marks)
Section B
2. a) What are professional ethics?

(4 marks)
b) State the ethical guidelines which are normally stated by professional accounting bodies in

respect of each of the following aspects.

(i)
Independence

(ii)
Competence

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(iii)
Confidentiality

(iv)
Obtaining professional work.

(16 marks)

3. Your auditing firm has been appointed as the new auditors for the financial year ending 31st
December 2000.
Required:
a) Itemize the steps you would take before the commencement of the audit.
(10 marks)
b) List and briefly explain the content of letter of engagement which you expect to get from the
client.

(10 marks)
4. a) Define the term audit sampling.

(2 marks)
b) Why does the auditor need to adopt a sampling approach in the conduct of Audit?

(6 marks)
c) Explain the situation where a sampling approach will not be appropriate.
(12 marks)
5. a) What is audit evidence?

(2 marks)
b) List and explain the various sources of audit evidence.

(8 marks)
c) List and explain the principal technique of assembling audit evidence.
(10 marks)

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Principles And Practitices Of Auditng Question Paper

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