Using the cardinalist approach of consumer behaviour, distinguish between income and substitution effects of a price rise for a normal good (10 marks)

Central and Eastern Industries is planning to introduce a new mobile phone service. To do so, the following activities are necessary: Activity Preceding Activity Expected Time (weeks) Standard Deviation (weeks) A – 6 1.0 B – 3 0.5 C A 5 1.0 D A 4 1.0 E A 3 0.5 […]

You have been appointed the auditor of United Millers Company Limited, a medium manufacturing company which is quoted on the stock exchange. Required: a) List the important matters which must be included in the letter of engagement. (14 marks) b) Explain the purpose of such a letter. (6 marks)

A charity is about to launch an appeal for a children’s ward in a national hospital and has to choose between the following fund raising strategies. Strategy I involves an initial appeal outlay of Sh. 40,000 and administrative costs of 5 cents for each Sh. 1.00 collected. Strategy II has […]

A student team was planning strategy for a management game being played in one of their classes. They had to decide whether to price their firm’s products high or low. They know that their subsequent profits in either case depended on whether the economy moved up or down – a […]

The probability distribution showing the number of hours a specially trained accounts clerk is required to work daily is as follows: Hours Frequency 0 0.4 1 0.3 2 0.2 3 0.1 The accounts clerk is assigned to this work daily based on the expected daily requirement. In addition, customers pay […]

A company wishes to change from an old computerised system to a new computer based accounting system. Explain how and why both systems should run parallel prior to the change over the new system (6 marks)

State and explain six examples of controls to prevent unauthorised changes to data files that you would expect to find in a new computer based accounting system (12 marks)

In the context of a computer based accounting system, explain the meaning of the following terms: i) Application controls (5 marks) ii) General controls (5 marks)