a. Extra cost:
Testing involves extra cost to the organization which is considered as a burden. It involves the disruptions of multiple cases. The auditor has to concentrate more even though there are disruptions. Before audit begins the auditor must get the attention of all the staff members of the organization.
b. Harassment of staffs:
Since the employees cannot express their own in terms of auditing, these changes are calibrated and the employees will fell harassed due to the changes that are caused. Even if they try to express their knowledge in new ideas, the organization may not entertain the employees in these types of situations.
c. Unsuitable changes:
The rules and regulations of business may vary from time to time. It remains unstable when the program begins. It is obvious that the company’s policies may not change periodically whereas the rules and regulations may.
d. Chances of fraud:
Since the information delivered after audit procedure is credential then there becomes more chances of getting the situations where an individual will be forced to commit crime. It harasses the auditors to commit crime after the audit gets over.
e. Problems in remedial measures:
Here the problem is created in remedial measures that are enhanced within the detailed interface of the data of remedial measures. These remedial measures are not included in the audit program
kevinnyabute answered the question on March 5, 2018 at 09:10
-
Outline the basic elements of an unqualified audit report
(Solved)
Financial accounting, audit reports
Date posted:
March 5, 2018
.
Answers (1)
-
List the principal matters which auditors consider when forming an opinion on the financial statements
(Solved)
List the principal matters which auditors consider when forming an opinion on the financial statements
Date posted:
March 5, 2018
.
Answers (1)
-
List and briefly explain the qualifications available to the auditor in drafting his audit report stating the circumstance in which each qualification is appropriate. Give...
(Solved)
Financial accounting, auditing
Date posted:
March 5, 2018
.
Answers (1)
-
Explain key differences between financial accounting and cost accounting
(Solved)
Introduction to Financial accounting
Date posted:
March 5, 2018
.
Answers (1)
-
Define accounting and explain six users of accounting information
(Solved)
Define accounting and explain six users of accounting information.
Date posted:
March 2, 2018
.
Answers (1)
-
Define the following concepts in accounting(a) Money measurement concept(b) Separate valuation concept(c) Separate entity concept
(Solved)
Define the following concepts in accounting (a) Money measurement concept (b) Separate valuation concept (c) Separate entity concept
Date posted:
February 21, 2018
.
Answers (1)
-
Outline the circumstances under which a person may cease to be a member of a cooperative society
(Solved)
Outline the circumstances under which a person may cease to be a member of a cooperative society
Date posted:
January 15, 2018
.
Answers (1)
-
Define the following investment rules. In your definition state the criteria for accepting or rejecting an investment. (a) Payback period (b) Internal rate of return
(Solved)
Define the following investment rules. In your definition state the criteria for accepting or rejecting an investment.
a) Payback period
b) Internal rate of return
c) Profitability index
Date posted:
December 27, 2017
.
Answers (1)
-
Write brief notes on( i) Hire purchase (ii) Credit sale (iii) Effects of goods repossessed on hire purchase transactions
(Solved)
a) Write brief notes on
i) Hire purchase
ii) Credit sale
iii) Effects of goods repossessed on hire purchase transactions
b) Fiona Limited bought Motor Vehicle on hire purchase terms. The transactions involved
the following:
i) The cash price Sh.800,000
ii) Hire purchase interest 25%
iii) Deposit 20% of cash price
iv) 5 annual equal installments.
The purchase was effected on 1st January 2015.All payments were made. Depreciation is at a rate of 10% per annum on straight line.
Required:
Asset account (3marks)
Hire purchase company account (4 marks)
Hire purchase interest account (3marks)
C In relation to investment accounting , distinguish the following terms
i) Cum – dividend and Ex – dividend (2 Marks)
ii) Bonus issue and Rights issue (2Marks)
d) ABC Ltd bought sh. 60,000, 10% loan stock of Expo ltd on 1st March 2008 at 90 cum- interest. Interest is payable half yearly on 30th June and 31st December.
Required:
Show the entries in ABC Ltd’s ledger for the year ended 31st December 2008. Ignore income tax. (6 Marks)
Date posted:
November 24, 2017
.
Answers (1)
-
State and explain examples of financial risk.
(Solved)
State and explain examples of financial risk.
Date posted:
November 14, 2017
.
Answers (1)
-
State and explain the concepts and principles of accounting
(Solved)
State and explain the concepts and principles of accounting
Date posted:
October 27, 2017
.
Answers (1)
-
Ways on how tax policy can be used to promote the growth of small and medium Enterprises (SMEs)
(Solved)
Taxation
Date posted:
October 26, 2017
.
Answers (1)
-
Differentiate between private limited companies and public limited companies.
(Solved)
Differentiate between private limited companies and public limited companies.
Date posted:
October 26, 2017
.
Answers (1)
-
What are the rights of a registered taxpayer under the VAT act?
(Solved)
What are the rights of a registered taxpayer under the VAT act?
Date posted:
October 25, 2017
.
Answers (1)
-
Differentiate between preference shares and ordinary shares.
(Solved)
Differentiate between preference shares and ordinary shares.
Date posted:
October 12, 2017
.
Answers (1)
-
Differentiate between personal and impersonal accounts.
(Solved)
Differentiate between personal and impersonal accounts.
Date posted:
October 2, 2017
.
Answers (1)