List and explain any three deductions that may be available against gains or profits from employment

i) Mr. Ali Ming is a hardware merchant. He purchases cement from Athi Cement Ltd. which he then sells to his customers. Both Ali Ming and Athi Cement Ltd. require a profit margin of 20% on cost. Cement attracts 18% VAT. If the cost of production by Athi Cement Ltd. […]

What are the rules governing the payment of VAT? Specify the additional tax that may arise from failure to comply with those rules.

The objectivity of the external auditor may be threatened or appear to be threatened where: (i) There is undue dependence on any audit client or group of clients; (ii) The firm, its partners or staff have any financial interest in an audit client; (iii) There are family or other close […]

i) Distinguish between a direct and indirect tax. (ii) Is Value Added Tax (VAT) a direct or indirect tax? Explain

Audit sampling is a technique for drawing conclusions about the characteristics of a population by testing a sample drawn there from. Internal and external auditors use it for both tests of controls, and substantive testing. Required: Describe the following: (i) Judgement sampling and statistical sampling; (ii) A representative sample; (iii) […]

What is the principle of cost sharing and to what extent does it influence the level of taxation? Discuss

Explain clearly the nature of a public good with specific reference to provision of education in UK today and the role taxes play under such circumstances.

Internal controls over non-current assets are designed to ensure the orderly and efficient running of the business, adherence to management policies, safeguarding of assets, the prevention of fraud and error and the completeness and accuracy of the accounting records. Required: List the internal controls that a small printing company with […]