(a) Explain briefly the law of diminishing marginal returns. (5 marks) (b) Explain briefly the difference between a probability density function and a probability distribution. (5 marks)

The director of one of your growing clients have decided to create an internal audit function in their organizational structure. Required: a) List and briefly describe the duties you would expect the internal audit staff to perform. (10 marks) b) List and explain the criteria which you would consider before […]

A chemical company is planning to launch a new fertilizer and carries out a market survey in order to determine the likely demand. The survey indicates that the company can expect to sell between 1,000 and 2,000 tons per month and that the relationship between price charged and quantity demanded […]

State and briefly explain the qualities of a good point estimator. (10 marks)

(a) A company had VAT due amounting to Sh.300,000. It was late in making the payment for six weeks. What late payment penalty will be charged? ( 4 marks) (d) Inland Limited imported goods whose landed value is Sh.400,000. The duty chargeable on them is at the rate of 35%. […]

(a) Explain any FOUR effects of Value Added Tax on business. ( 8 marks) (b) Specify the rules relating to appeal against the Commissioner’s decision under the Value Added Tax Act. ( 4 marks)

Describe the various procedures of obtaining audit evidence giving an example of each by way of illustration. (10 marks)

a) Explain the meaning of the „audit evidence‟. (4 marks) b) Write a brief explanatory notes on the following terms in relation to audit evidence: i. Relevance. (2 marks) ii. Reliability. (2 marks) iii. Sufficiency. (2 marks)

Transparency and Co. Certified Public Accountants, have been appointed to audit accounts of Health National Hospital. Due to the large number of accounts, the consultants have decided to audit a random sample of the accounts. Required: (i) State the advantages of auditing a sample of the accounts. (3 marks) (ii) […]