Write briefly explanatory notes on the following types of audit: i. Statutory audit; (3 marks) ii. Private audit; (3 marks) iii. Balance sheet audit; (3 marks) iv. Management audit; (3 marks)

A real estate salesperson estimates that 80% of the customers with whom he deals, can qualify financially for a mortgage loan for the house of their choice. Required: Determine the probability that the salesperson will process six loan applications before four approvals are obtained.

With reference to Pay As You Earn (PAYE) system: (a) Write explanatory notes on the following: (i) Taxation of pension income for a retired employee; ( 4 marks) (ii) Allowable deductions for contributions to a registered pension scheme; ( 2 marks) (iii) Procedure for the end of year Return; ( […]

(a) Explain briefly the law of diminishing marginal returns. (5 marks) (b) Explain briefly the difference between a probability density function and a probability distribution. (5 marks)

The director of one of your growing clients have decided to create an internal audit function in their organizational structure. Required: a) List and briefly describe the duties you would expect the internal audit staff to perform. (10 marks) b) List and explain the criteria which you would consider before […]

A chemical company is planning to launch a new fertilizer and carries out a market survey in order to determine the likely demand. The survey indicates that the company can expect to sell between 1,000 and 2,000 tons per month and that the relationship between price charged and quantity demanded […]

State and briefly explain the qualities of a good point estimator. (10 marks)

(a) A company had VAT due amounting to Sh.300,000. It was late in making the payment for six weeks. What late payment penalty will be charged? ( 4 marks) (d) Inland Limited imported goods whose landed value is Sh.400,000. The duty chargeable on them is at the rate of 35%. […]

(a) Explain any FOUR effects of Value Added Tax on business. ( 8 marks) (b) Specify the rules relating to appeal against the Commissioner’s decision under the Value Added Tax Act. ( 4 marks)