The matter listed below are always included in the internal control of a firm. You are required to explain the purpose of each of the items listed as (a), (b) and (c) below. Indicate the compliance tests you would carry out in order to ensure that the intended controls were […]

Define the following terms as used in Markovian analysis: (i) Transition matrix (4 marks) (ii) Initial probability vector (2 mark) (iii) Equilibrium (2 mark) (iv) Absorbing state (4 marks)

The following economic functions have been derived by the Finance Manager of a tea company: Qa = 3p2 – 4p and Qb = 24 – p2; where p represents price and Q is quantity Required: a) i) Which of the two functions represents a demand curve, supply curve and why? […]

Gatheru and Kabiru Certified Public Accountants have recently started to give business advice to their clients. Acting as consultants, they have estimated the demand curve of a client’s firm to be; AR = 200 – 8Q Where AR is average revenue in millions of shillings and Q is the output […]

Write short notes on the following: (a) Industrial Building – “Hotel” ( 4 marks) (b) Exempt Dividend Income. ( 4 marks) (c) Non-Resident Individual ( 4 marks) (d) Memorandum of Appeal & Statement of Facts. ( 4 marks)

Working papers provide the audit evidence. They can be categorized into: i. Auditors’ prepared working papers. ii. Client’s schedules used as working papers. iii. Audit programmes. Working papers are then organized into files usually referred to as either current files of permanent files. Required: a) What details should each working […]

Two ACCA students were discussing the relationship between average cost and total cost. One student said that since average cost is obtained by dividing the cost function by the number of units Q, it follows that the derivative of the average cost is the same as marginal cost, since the […]

Consider a project which has been modeled as follows: Activity Immediate Predecessor (s) Completion Time (hours) A B C D – – A A 7 10 4 30 E F G H I J K L A B,C B,C E,F E,F E,F D,H G,J 7 12 15 11 25 6 […]

Printa Limited is a large printing company, which has an on-line computer accounting system. The system is based around a central main frame computer, with terminals serving individual departments. As part of the interim audit work, you have been asked to carry out a preliminary evaluation of ;  The […]