(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 […]

Puda Development Company (PDC) is a small real estate developer operating in the Eastland’s Valley. It has seven permanent employees whose monthly salaries are given below: Employee Monthly salary (Sh) Managing Director 100,000 Manager, Development 60,000 Manager, Marketing 45,000 Project Manager 55,000 Finance Manager 40,000 Office Manager 30,000 Receptionist 20,000 […]

Explain the role that internal control questionnaires and internal control evaluation questionnaires play in determining the effectiveness of the systems of internal control.

Explain how assessment of systems and controls impacts upon the main stages of the audit process

Define tests of controls, substantive procedures and walk-through tests.