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Outline the guidelines on how to write an informal letter.
Date posted:
April 15, 2019
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What are companies limited by guarantee?
Date posted:
April 15, 2019
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What are companies limited by shares?
Date posted:
April 15, 2019
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What is meant by the term Declaration of Compliance?
Date posted:
April 15, 2019
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Find the volume of a sphere whose radius is 3.0cm
Date posted:
April 15, 2019
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In an experiment to estimate the height of a tree in Nyabururu Girls’ Secondary School compound, Grace recorded the following data.
I. Length of shadow of the tree= 1000cm
II. Length of shadow of the rod = 200cm
III. Height of the rod = 100cm
Determine the height of the tree
Date posted:
April 15, 2019
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Explain five ways in which Kenyatta contributed to the nationalist movement in Kenya upto 1963.
Date posted:
April 15, 2019
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State ten grievances of the Africans which were voiced by Kenya African Union (KAU)
Date posted:
April 15, 2019
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Give the sources of Error When Using a Meter Rule
Date posted:
April 15, 2019
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Explain ten factors which promoted the growth of African nationalist activities.
Date posted:
April 15, 2019
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Which factors are Considered When Choosing an Instrument for Measuring Lengths?
Date posted:
April 15, 2019
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Some two objectives of the Kikuyu Central Association (K.C.A)
Date posted:
April 15, 2019
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The invention of fire was the most significant inventions in the middle stone age. Highlight six importance of fire to the early man.
Date posted:
April 13, 2019
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Describe the way of life the early man during the last period of development of man, the upper stone age
Date posted:
April 13, 2019
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Highlight and explain the theories advanced to explain the origin of man
Date posted:
April 13, 2019
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Define genetics as a source of information on history and government and identify the limitations of using the method.
Date posted:
April 13, 2019
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Give reasons for Establishing SI Units?
Date posted:
April 13, 2019
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Show the relationship between Physics, Other Subjects and Technology
Date posted:
April 13, 2019
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Jayne Co has a significant number of cash transactions and recent non-current asset purchases have been financed by a bank loan. This loan is repayable in equal annual installments for the next five years.
Required:
i. Explain the procedures to obtain a bank report for audit purposes from Jayne Co’s bank
and the substantive procedures that should be carried out on that report.
ii. List the further substantive procedures that should be carried out on the bank balances in Jayne Co’s financial statements.
Date posted:
April 13, 2019
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ISA 505, External Confirmations, states that ‘the auditor should determine whether
the use of external confirmations is necessary to obtain sufficient appropriate audit
evidence at the assertion level’.
Required:
i. List four examples of external confirmations.
ii. For each of the examples in (i) above explain one audit assertion that the external confirmation supports, and one audit assertion that the external confirmation does not support.
Date posted:
April 13, 2019
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IAS 2 ‘Inventories’ requires that inventories are measured at the lower of cost and net realizable value.
Required:
(a) Explain why the audit of inventory is important to auditors.
(b) Define ‘cost’ and ‘net realizable value’ according to IAS 2 ‘Inventories’.
(c) Describe the audit evidence that you would obtain for the cost and net realizable value
of finished inventory in a company that manufactures household furniture.
Date posted:
April 13, 2019
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You have been asked by the manager in charge of the audit of Timab agencies to consider
and describe various aspects of carrying out a debtor’s circularization at its year ending 31st
December 2006. The company sells its products on credit and the draft accounts show annual
turnover of twenty five million shillings. The accounts also show debtors of five million shillings.
Your compliance test on the sales system has shown that there is only satisfactory division of
duties in the sales system and only minor errors were found in compliance tests.
Required
a. Consider the reliability of a debtor’s circularization in providing audit evidence and in
verifying value of year end debtors.
b. Describe the work you will carry out in auditing the replies to debtors circularization
where debtor does not reply to circularization
Date posted:
April 13, 2019
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Tasty ice cream employs thirty salesmen each with defined geographical area coverage. Each
salesperson is supplied with a car which is changed every three years. At end of each week,
each salesperson is submits claim on a preprinted form for expenses with supporting vouchers.
Expenditure is on petrol, repairs and servicing the car, hotels, lunches and entertainment. Each
claim is scrutinized by Beatrice who is the deputy chief accountant. She verifies that the claims
are supported by the vouchers. She clears any inconsistencies with the salesperson concerned
and makes out cheques for signatures by two company directors. The total amount paid in year
ended 31/12/2006 was Kshs. 25,000,000. The company made a profit of Kshs. 125,000,000.
Required:
a. Discuss the short comings of this system and suggest ways of improving the system.
b. List and describe the tests of control the auditor would undertake in this system.
c. During the audit, the auditor discovered that a salesperson in one area was submitting
false claims for entertaining customers. What actions should the auditor take?
Date posted:
April 13, 2019
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An extract from the draft audit report produced by an audit junior is given below:
Basis of Opinion
‘We conducted our audit in accordance with Auditing Standards. An audit includes examination,
on a test basis, of evidence relevant to the amounts and disclosures in the financial statements.
It also includes an assessment of all the estimates and judgments made by the directors in the
preparation of the financial statements, and of whether the accounting policies are appropriate to
the company’s circumstances, consistently applied and adequately disclosed.
‘We planned and performed our audit so as to obtain as much information and explanation as
possible given the time available for the audit. We confirm that the financial statements are free
from material misstatement, whether caused by fraud or other irregularity or error. The directors
however are wholly responsible for the accuracy of the financial statements and no liability for
errors can be accepted by the auditor. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the company’s annual report.’
Required:
Identify and explain the errors in the above extract.
Date posted:
April 13, 2019
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List the audit procedures that should be carried out to determine whether or not the going
concern basis is appropriate for Green Co.
Date posted:
April 13, 2019
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Explain the directors’ responsibilities and the auditors’ responsibilities regarding financial
statements prepared on the going concern principle.
Date posted:
April 13, 2019
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Walsh Co sells motor vehicle fuel, accessories and spares to retail customers. The company
owns 25 shops. The company has recently implemented a new computerized wages system.
Employees work a standard eight hour day. Hours are recorded using a magnetic card system;
when each employee arrives for work, they hold their card close to the card reader; the reader
recognizes the magnetic information on the card identifying the employee as being ‘at work’.
When the employee leaves work at the end of the day the process is reversed showing that the
employee has left work.
Hours worked are calculated each week by the computer system using the magnetic card
information. Overtime is calculated as any excess over the standard hours worked. Any overtime
over 10% of standard hours is sent on a computer generated report by e-mail to the financial
accountant. If necessary, the accountant overrides overtime payments if the hours worked are
incorrect.
Statutory deductions and net pay are also computer calculated with payments being made directly
into the employee’s bank account. The only other manual check is the financial accountant
authorizing the net pay from Walsh’s bank account, having reviewed the list of wages to be paid.
Required:
a. Using examples from Walsh Co, explain the benefits of using Computer-Assisted Audit
Techniques to help the auditor to obtain sufficient appropriate audit evidence to be able
to draw reasonable conclusions on which to base the audit opinion.
b. List SIX examples of audit tests on Walsh Co’s wages system using audit software.
c. Explain how using test data should help in the audit of Walsh Co’s wages system,
noting any problems with this audit technique.
Date posted:
April 13, 2019
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List and briefly explain some of the difficulties of using audit software.
Date posted:
April 13, 2019
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Computer-Assisted Audit Techniques (CAATs) are used to assist an auditor in the collection
of audit evidence from computerized systems.
Required:
List and briefly explain four advantages of CAATs.
Date posted:
April 13, 2019
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Explain why the British became interested in establishing their control over Kenya during the second half of the 19th century.
Date posted:
April 13, 2019