Briefly but clearly explain the purpose of Input- Output analysis.

You are an audit manager in an audit firm with 250 staff. Your firm is the auditor of Sunrise, a chain of Supermarkets. Your firm has been the auditor of this client for many years. All of the planning work and tests of control have been completed for Sunrise for […]

Celtel is a large telecommunications company that is listed on a Stock Exchange. It is highly geared because, like many such companies, it borrowed a large sum to pay for a license to operate a mobile phone network with technology that has not proved popular. The company’s share price has […]

Describe the possible audit reports that can be issued where the going concern status of a company is called into question; your answer should describe the circumstances in which they can be issued

Describe external auditor’s responsibilities and the work that the auditor should perform in relation to the going concern status of companies.

ISA 400 Risk Assessments and Internal Control deals with internal control objectives and internal controls. ISA 500 Audit Evidence deals with audit objectives and audit procedures. A proper understanding of internal controls is essential to auditors in order that they understand the business and are able to effectively plan and […]

Auditors obtain several different confirmations from various sources during the course of their audit. Required: Describe the audit evidence provided by each of the confirmations listed below, the practical difficulties in obtaining them and the alternative audit evidence available when they are not provided: (a) Management representations. (7 marks) (b) […]

Mr. Mteta has approached you with a view to obtaining help in determining his taxable income for 2005. He has supplied the following information: 1. Business Income He runs a small garage that generate taxable income of Sh.60,000. In 2004, he had a tax loss of Sh.40,000 from this business. […]

Company B has a provision in its balance sheet for claims made by customers for product defects under 1-year company warranties. Required: Describe the matters you would consider and the audit evidence you would require for the provision.