i. Define the term audit programme. (2 marks) ii. Write in point form an audit programme to cover salary and wages of a small size firm. (8 marks)

A businessman is contemplating investing in a business worth Sh.5,000,000 but has not made up his mind on which form of ownership he will assume. The business is expected to produce a profit of Sh.2,000,000 before tax and his drawings/salary averaging 10% on investment. Required: Advice the businessman on the […]

Distinguish between sole proprietorship and limited liability forms of business in relation to: Income Tax PAYE for the owners of business Service charge for the owners and the business. ( 8 marks)

Write brief notes on the following auditing techniques: i. Inspection; (4 marks) ii. Observation; (3 marks) iii. Enquiry. (3 marks)

(a) State clearly what is meant by two events being statistically independent. (2 marks) (b) In a certain factory which employs 500 men, 2% of all employees have a minor accident in a given year. Of these 30% had safety instructions whereas 80% of all employees has no safety instructions. […]

A company employs four classes of machine operators (A, B, C and D); all new employees are hired as class D and, through a system of promotion, may work up to a higher class. Currently, there are 200 class D, 150 class C, 90 class B and 60 class A […]

i. Give the meaning of the term ‘ Price Control’ (2 marks) ii. Explain the circumstances under which price control is considered necessary. (8 marks)

Sponex Limited deals in a wide variety of low-price sports goods. Shown below is a list of transactions for the month of June 2006. June 2 June 3 June 4 June 9 June 11 June 12 June 16 June 19 June 21 Purchased goods on credit from Marun Shoes of […]

Write brief notes on the tax aspects of the following: (i) Royalties ( 5 marks) (ii) Import Declaration Form ( 5 marks) (iii) Valuation Roll of Local Authorities. ( 5 marks)