State, and explain four attributes of the Beta distribution which made it to be chosen as the distribution of activity times in project evaluation and review technique (PERT).

The auditing standard on subsequent events provide the basic principles and procedures as to the auditor’s responsibilities and deal with: i. Dating the auditor’s report ii. Audit procedures iii. Events after the date of the audit report. Required: a) In the context of subsequent events, what is the significance of […]

Consider the two person zero sum game between players A and B given by the following pay-off table; Player B Strategies 1 2 3 4 Player A Strategies 1 2 2 3 -1 2 4 3 2 6 Required: (i) Using the maximin and minimax values, is it possible to […]

Define the following terms used in game theory: (i) Dominance (3 marks) (ii) Saddle point (3 marks) (iii) Mixed strategy (3 marks) (iv) Value of the game (3 marks)

Specialists or experts are occasionally required by external auditors mainly in connection with the valuation assets and the determination of liabilities. Required: a) The necessity for reliance on specialist. (12 marks) b) The extent to which the specialist should be independent? (5 marks) c) Competence of the specialist. (3 marks)

The Tamu – Tamu Products Company Ltd. is considering an expansion into five new sales districts. The company has been able to hire four new experienced salespersons. Upon analyzing the new sales persons’ past experience in combination with a personality test which was given to them, the company assigned a […]

Define the following terms as used in linear programming: (i) Feasible solution (4 marks) (ii) Transportation problem. (4 marks) (iii) Assignment problem. (4 marks)

“Most errors in computer based accounting systems can be traced to faulty input. Controls over the completeness and validity of all inputs are vital. Control over data conversions, controls over rejections and their correction and reprocessing, batch controls and computer edit controls affect both completeness and validity”. Required: a) Explain […]

Rai, Sai and Tai are former school mates who were doing business together. The business is not registered but they registered themselves as equals in it. They keep proper books of account and have been able to provide the following profit and loss account for the year ended 31 December […]