Mr. Manubhai works as a sales manager with Kenya Bats Limited. The following are his employment details for the year ended 31 December 2005. The company pays him a salary of Sh.90,000 per month. He is a member of the company’s pension scheme which is registered with the Commissioner for […]

i) Specify the rules relating to payment of Income tax under the Pay As You earn rules. ( 5 marks) (ii) What are the consequences of failure to deduct and pay tax under PAYE?

Consider a hypothetical economy consisting of three sectors A, B and C with inputs and outputs for a particular period. The balanced transaction table has the form shown in the following table. The figures given are in billions of shillings. Input to A B C External demand Total Output Output […]

Briefly but clearly explain the purpose of Input- Output analysis.

You are an audit manager in an audit firm with 250 staff. Your firm is the auditor of Sunrise, a chain of Supermarkets. Your firm has been the auditor of this client for many years. All of the planning work and tests of control have been completed for Sunrise for […]

Celtel is a large telecommunications company that is listed on a Stock Exchange. It is highly geared because, like many such companies, it borrowed a large sum to pay for a license to operate a mobile phone network with technology that has not proved popular. The company’s share price has […]

Describe the possible audit reports that can be issued where the going concern status of a company is called into question; your answer should describe the circumstances in which they can be issued

Describe external auditor’s responsibilities and the work that the auditor should perform in relation to the going concern status of companies.

ISA 400 Risk Assessments and Internal Control deals with internal control objectives and internal controls. ISA 500 Audit Evidence deals with audit objectives and audit procedures. A proper understanding of internal controls is essential to auditors in order that they understand the business and are able to effectively plan and […]