On 1 January 2003, Pesy Limited brought into full operation its Liru Factory of producing bottle tops. The following expenditure had been incurred up to that date. Sh. Factory building (including store and showroom of Sh.600,000 and 800,000 respectively) New machinery installed: Fixed Moveable Delivery trucks (6980cc each) Office furniture […]

Many farmers in the rural areas are unaware of the benefits accorded to them in form of capital allowances under the Income Tax Act. Write a brief summary on capital allowances which may be available to the farmer.

Your firm is the newly appointed external auditor to a large company that sells, maintains and leases office equipment and furniture to its customers and you have been asked to co-operate with internal audit to keep total audit costs down. The company wants the external auditors to rely on some […]

Your firm is the auditor of Trent Textiles Ltd, and you are planning your audit work on the stock-take, which will be carried out at the firm‟s yearend of 31 May 19X3. Trent Textiles manufactures knitted garments, including pullovers. The production process comprises: (a) Knitting the individual components (e.g body […]

(a) Define probability as used in Quantitative Techniques. (3 marks) (b) What is Bayes Theorem? Explain how Bayes Theorem can be utilized practically. (5 marks)

The number of auditing jobs performed by KK’s auditing firm in each of the last nine months are listed below: Month Jobs September 353 October 387 November 342 December 374 January 396 February 409 March 399 April 412 May 408 Required: KK firm feel that if June auditing jobs are […]

Briefly but clearly explain the method of least squares.

Explain the difference between mean squared error and mean absolute deviation as measures of forecast accuracy.

In auditing the financial statements of companies which use computerized accounting systems, the auditors may find that this traditional (audit) trail is often obscured. Various techniques can be used in order to give the auditors greater assurance when the audit trail is lost. Required a) Explain why there is a […]