A small company produces only two sizes of frames for stereo receivers: standard size and slim-line. The accounting department has provided the following analysis of the unit profit: Standard Slim-line Selling price Sh. 6.00 Sh. 4.25 Raw materials Sh. 0.75 Sh. 0.50 (1.5 units @ Sh. 0.50/unit) (1 unit @ […]

When projecting a moving average trend, what basis would make the choice of one of the following appropriate? (i) Projecting „by eye.‟ (2 marks) (ii) Using the method of semi-averages (1 mark) (iii) Using the average change in trend per period from the range. (1 mark)

Explain how management of an organization might use seasonal variation figures and seasonally adjusted data.

You have been the auditor of Crossborder Trading Company Ltd. for a number of years. The company‟s head office is in Nairobi, Kenya and if has considerable overseas operations. At each accounting year end, there are large debts due from overseas agents of the company (Sh. 270 million out of […]

Draft an online audit programme for the fixed assets of a large manufacturing company. (15 marks)

(a) Explain the moving average centering and why it is employed. (5 marks) (b) Given a time series with trend figures already calculated, describe in words only, the method for calculating seasonal variation values using the additive model. (5 marks)

For an additive time series model, what does the term “residual variation” mean? Describe briefly its two main constituents.

List and discuss five disadvantages of using standardized audit programmes and how these disadvantages can be avoided.

In 250 – 300 words, define and explain the meaning of an audit programme giving examples