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Dac 401: Principles Of Auditing Question Paper

Dac 401: Principles Of Auditing

Course:Bachelor Of Commerce

Institution: University Of Nairobi question papers

Exam Year:2011

Question One
(a) Briefly discuss the factors that have contributed to the development of modern auditing (9 marks)

(b) State and explain the main causes of information risk (16 marks)

Question Two
The management of a company is responsible for preparing the financial statements and thus they contain management's ascertains about economic actions and events. The purpose of an audit is to obtain and evaluate evidence about these assertions management makes in financial statements.

Briefly identify and discuss the FIVE assertions that management make in financial statements (25 marks)

Question Three
(a) Discuss the various procedures that an auditor may employ in obtaining audit evidence (15 marks)

(b) State and explain the FIVE stages involved in a sales transaction for an organization with a proper system of internal control. (10 marks)

Question Four
(a) Ethical clearance and Letter of Engagement are critical steps in performing audit work.
Briefly discuss the two terms. (10 marks)

(b) Define Materiality as regards to auditing (3 marks)

(c) What is material is often difficult to determine. Discuss the factors to consider in determining materiality. (12 marks)