a) Explain the meaning of the following audit terms: i. Tests of control. (3 marks) ii. Substantive tests. (3 marks) b) Explain the meaning of the „audit evidence‟. (4 marks)

Mr. Kiplimo is finalizing his tax affairs for the year of income 2005. He and his wifehad the following income and transactions for 2005:1. Mr. Kiplimo’s income:He has paid Sh.52,000 Value Added Tax on all his purchases for the yearHe was an employee of Bomet Tea Limited and was paid […]

(a) (i) Define an indifference curve (2 marks) (ii) Illustrate and clearly explain the nature of indifference curves for perfect substitutes and for complementary goods (7 marks) (b) Explain the property of convexity to the origin of an indifference curve ( 4 marks)

(i) Briefly explain two exceptions to the definition of an indifference curve. (4 marks) (ii) Explain any four uses of indifference curve analysis. (8 marks)

(i) What is an indifference curve? (3 marks) (ii) Explain the main characteristics of indifference curves (12 marks)

A small economy has three main industries which are steel, motor vehicles and construction. The industries are interdependent. Each unit of steel output requires 0.2 units from steel, 0.3 units from motor vehicles and 0.4 units from construction. A unit of motor vehicles output requires 0.2 units from steel, 0.4 […]

List and explain six examples of key control questions that would be suitable for inclusion in an ICEQ for a wages accounting system.

Explain how an Internal Control Evaluation Questionnaire (ICEQ) differs from an Internal Control Questionnaire (ICQ).

Give and explain four merits and four demerits of using a flowchart to record an accounting system. (20 marks)