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The responsibilities of external auditors are not always well understood, especially
with regard to the detection and reporting of fraud. When external auditors provide
non-audit services to their audit clients, it is essential that the auditors make a clear
distinction between their audit and non-audit responsibilities.
Required:
a) Explain the responsibilities of external auditors to directors and shareholders
b) Describe the limitations of the external audit in relation to the detection and
reporting of fraud.
c) Explain why it is essential for external auditors to be independent of their clients.
d) Explain the advantages and disadvantages of external auditors providing
consulting services to their audit clients.
Date posted:
August 4, 2018
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Towards the end of an audit, it is common for the external auditor to seek a letter of
representation (written representations) from the management of the client company.
Required:
(a) Explain why auditors seek letters of representation.
(b) List the matters commonly included in the letter of representation.
(c) Explain why it is important to discuss the content of the letter of representation at
an early stage during the audit.
(d) Explain why management is sometimes unwilling to sign a letter of representation
and describe the actions an external auditor can take if management refuses to sign
a letter of representation.
Date posted:
August 4, 2018
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a) Internal control systems are designed, amongst other things, to prevent error and
misappropriation.
Required:
Describe the errors and misappropriations that may occur if the following are not
properly controlled:
(i) Receipts paid into bank accounts;
(ii) Payments made out of bank accounts;
(iii) Interest and charges debited and credited to bank account
(b) A book-selling company has a head office and 25 shops, each of which holds cash
(banknotes, coins, and credit card vouchers) at the balance sheet date. There are
no receivables. Accounting records are held at shops. Shops make returns to head
office and head office holds its own accounting records. Your firm has been the
external auditor to the company for many years and has offices near to the
location of some but not all of the shops.
Required:
List the audit objectives for the audit of cash and state how you would gain the audit
evidence in relation to those objectives at the year-end.
c) The external auditors of companies often write to companies’ bankers asking for
details of bank balances and other matters at the year-end.
Required:
Explain why auditors write to companies’ bankers and list the matters you would
expect banks to confirm.
Date posted:
August 4, 2018
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Chagizo ni nini?
Date posted:
August 4, 2018
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State five function of London as an urban centre.
Date posted:
August 4, 2018
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Outline the challenges facing implementation of mother tongue in schools
Date posted:
August 3, 2018
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Shadda ni nini?
Date posted:
August 3, 2018
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Give two ways through which early agriculture spread in Africa.
Date posted:
August 3, 2018
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Nini maana ya kijalizo katika sarufi ya Kiswahili?
Date posted:
August 3, 2018
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Outline six measures that an office manager may take to ensure employees cooperation when carrying out an organization method
Date posted:
August 3, 2018
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List 10 sub tribes of the Abaluhya community?
Date posted:
August 2, 2018
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Explain how a mixture of sulphur and sodium chloride can be separated into solid sulphur and sodium chloride
Date posted:
August 2, 2018
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Role of East Africa in world war I
Date posted:
August 2, 2018
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Describe six policies that can be adopted by developing countries to improve agricultural sector.
Date posted:
August 2, 2018
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State the functions of the asantehene
Date posted:
August 2, 2018
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Describe the characteristics of a good research problem
Date posted:
August 2, 2018
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Seven reasons why human beings are considered as the climax of God's creation.
Date posted:
July 31, 2018
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Techniques you can employ in narrating a trickster story to an audience
Date posted:
July 31, 2018
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Explain the advantages of division of labour in the production process.
Date posted:
July 31, 2018
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Eleza maana ya lakabu.
Date posted:
July 30, 2018
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Eleza njia tofauti za kuanisha misimu
Date posted:
July 30, 2018
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Taja sifa nne kuu za misimu
Date posted:
July 30, 2018
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Misimu ina dhima gani?
Date posted:
July 30, 2018
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Nini maana ya misimu?
Date posted:
July 30, 2018
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Taja jinsi methali na vitendawili zinavyowiana.
Date posted:
July 30, 2018
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Toa mifano ya vitendawili vinavyohusiana na methali.
Date posted:
July 30, 2018
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Eleza matumizi ya mbinu ya utata katika vitendawili huku ukitolea mifano.
Date posted:
July 30, 2018
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Mbinu ya taswira hutumika vipi katika vitendawili?toa mifano miwili.
Date posted:
July 30, 2018
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Tambua mifano ya vitendawili vinavyotumia tanakali za sauti.
Date posted:
July 30, 2018
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Toa mifano miwili inayoonyesha matumizi ya takriri katika kitendawili.
Date posted:
July 30, 2018