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 […]

Your firm audits Clean Paints Ltd. and you are planning the audit of stock and work in progress for the year ended 31 December 2000. Clean Paints Ltd. determines the value of stock in its financial statements by the year-end stocktake. There is no perpetual Stock Inventory System though stock […]

The following regression equation was calculated for a class of 24 CPA II students. Ŷ = 3.1 + 0.021X1 + 0.075X2 + 0.043X3 Standard error (0.019) (0.034) (0.018) Where: Y = Students score on a theory examination X1 = Students rank (from the bottom) in high school X2 = Students […]

With the aid of well-labeled diagrams, distinguish between price floors and price ceilings. (6 marks) ii. What are the major consequences of each of the price control measures? (8 marks)

Does an individual person have to raise an objection for tax assessed under the Income Tax Act now that there is self assessment? Explain.