Explain what break-even analysis as used in Quantitative Techniques is

You are auditing the financial statements of Newbridge Trading plc, for the year-ended 31 October 1997. The senior partner of your audit firm has asked you to consider the auditor‟s responsibilities for identifying subsequent events. Also, he has asked you to describe the audit procedures, which examine subsequent events. He […]

In Miami town the average weekly wages for a certain group of wage earners was US $ 3,022.50. In 1998 the average weekly pay for the same group of wage earners showed an earning of US $ 4,836.00. In 1998 the consumer price index using 1990 as a base was […]

(a) What is a Lorenz curve? Explain any two areas Lorenz curve can be used. (6 marks) (b) What is an index number? Explain two areas where index numbers are applied. (6 marks)

During the final stage of the first audit of Nairobi National Bank Ltd. You request the client to provide you with a letter of representation. The Client reads representations you are requesting and refuses to furnish the letter. The client states its position to be as follows:- “You are asking […]

UC Limited specializes in selling small electrical appliances. A considerable portion of the company’s sales is on instalment basis. Although most of the company’s customers make their instalment payments on time, a certain percentage of their accounts are always overdue and some are never paid at all. The company’s experience […]

Explain the way in which the auditor should approach and perform his work in order to meet these responsibilities.

(a) What is meant by the term „fraud‟? Give four examples of fraudulent activities. (6 marks) (b) What do you consider to be the auditor‟s responsibilities in the course of the normal annual audit in relation to the detection of fraud? (6 marks)

Define the following terms: (i) Stochastic process: (2 marks) (ii) Transition matrix; (2 marks) (iii) Recurrent state; (2 marks) (iv) Steady state. (2 marks)