Gatheru and Kabiru Certified Public Accountants have recently started to give business advice to their clients. Acting as consultants, they have estimated the demand curve of a client’s firm to be; AR = 200 – 8Q Where AR is average revenue in millions of shillings and Q is the output […]

Write short notes on the following: (a) Industrial Building – “Hotel” ( 4 marks) (b) Exempt Dividend Income. ( 4 marks) (c) Non-Resident Individual ( 4 marks) (d) Memorandum of Appeal & Statement of Facts. ( 4 marks)

Working papers provide the audit evidence. They can be categorized into: i. Auditors’ prepared working papers. ii. Client’s schedules used as working papers. iii. Audit programmes. Working papers are then organized into files usually referred to as either current files of permanent files. Required: a) What details should each working […]

Two ACCA students were discussing the relationship between average cost and total cost. One student said that since average cost is obtained by dividing the cost function by the number of units Q, it follows that the derivative of the average cost is the same as marginal cost, since the […]

Consider a project which has been modeled as follows: Activity Immediate Predecessor (s) Completion Time (hours) A B C D – – A A 7 10 4 30 E F G H I J K L A B,C B,C E,F E,F E,F D,H G,J 7 12 15 11 25 6 […]

Printa Limited is a large printing company, which has an on-line computer accounting system. The system is based around a central main frame computer, with terminals serving individual departments. As part of the interim audit work, you have been asked to carry out a preliminary evaluation of ;  The […]

It has often been said that the auditors‟ report is the formal result of all his efforts. This being the case, it is very important that the reader well understands the meaning of the Audit Report, particularly where the auditor wishes to qualify his opinion on the financial statements. Required: […]

Moving averages are often used in an effort to identify movements in share prices. Approximate monthly closing prices (in Sh. per share) for Toys Children Ltd. for December 2000 through November 2001 are shown below: Month Price (Sh) December January February March April May June July August September October November […]

The cashier of a firm who also acts a bookkeeper has been suspected of dishonesty. The books have not been audited for the last nine months. You have been asked to investigate the records to establish whether the cashier has committed a fraud. Required: Outline how you would proceed with […]