Outline six specific actions that an individual auditor or audit firm can take to minimize liability arising from audit risk.

Identify and outline the categories of parties who may institute successful legal claims against an auditor emphasizing the basis a court of law would use to assess the value of damages.

(i) Describe the circumstance under which an auditor may be liable for damages for materials misstatements in published accounts on which he has expressed an audit opinion. (4 marks) (ii) Under what circumstances can be avoid liability? (4 marks)

(i) State and explain the aspects of significance of factor mobility (5 marks) (ii) What policy recommendations would you suggest to reduce regional development imbalances if any in developing countries? (5 marks)

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)