Restmount Kenya Ltd. was formed on 1 October 1997 in order to export tea and coffee to European markets. The Directors are unsure as to their responsibilities and the nature of their relationship with the external auditors. The audit partner has asked you to visit the client and explain to […]

Emali Co. Ltd. has undergone a period of substantial growth following its establishment five years ago. At the last annual general meeting Smith & Co. Associates, a tow-partner firm of Certified Public Accountants were re-appointed as auditors. However, Smith & Co. Associates have decided that they do not have the […]

The following plot shows the current account balance (as a percent of GDP) for the five BRICS economies (Brazil, Russia, India, China and South Africa) from the first quarter of 2003 to the second quarter of 2019:       Discuss the trend of the current account balance (as a […]

The auditing guideline on ‘recording’ requires audit working papers to be sufficient complete and detailed so that an experienced auditor who has no previous connection with the audit is able to subsequently ascertain from working papers the work performed and to further support the conclusions reached thereon. Required: (a) State […]

You are the audit manager in charge of Car Alarms Ltd. Whose financial year ended on 31 March 1993. Due to the tight schedule of your programmes you are unable to devote anytime at the client‟s premises. Therefore you have delegated the responsibility to the audit senior. (a) State the […]

PQR Ltd is the sole supplier of electricity in your country. It supplies electricity to two separate consumers, namely (i) industrial and commercial users and (ii) domestic users. The company is able to charge different prices or tariffs to these two consumers. Suppose the PQR Ltd’s total cost of producing […]

a) Distinguish between internal audit and internal check (4 marks) b) Explain the matters you would consider and the work you would perform to enable you assess the extent to which you would rely on the work of the internal audit department of your client (12 marks) c) Give four […]

Define the term per capita income. Show its usefulness and highlight some of its inherent shotcomings. (7 marks) The table below represents estimated national income values for hypothetical economy X in millions of shillings: Gross National Product (at market prices) = 389.2 Depreciation allowance = 47.0 Indirect taxes less subsidies […]

(a) Describe the following types of Audits: i. Statutory Audits; ii. Internal Audits; iii. Private Audits; iv. Management Audits; (b) What are the similarities and differences between internal and external audits?