Day: February 20, 2021

  QUESTION ONE   What is the purpose of a letter of representation?(4 marks) State and briefly explain the action auditors should take if the management refuses to provide a letter of representation.                                              (4 marks) ( State the specific Read More …

QUESTION ONE What is an ―interim audit‖? (2 marks) Identify any four circumstances under which an interim audit would be ideal. marks) List and briefly explain five disadvantages of an interim audit. (10 marks)     Suggest solutions to any Read More …

QUESTION ONE   You have recently been appointed as the external auditor of XYZ Ltd. Explain the stages you would in the conduct of your audit.                              (4 marks) In the context of the Companies Act (Cap. 486), outline the Read More …

QUESTION ONE   In order to conduct an audit effectively and efficiently, an auditor should properly plan for the assignment   Explain the matters that an auditor should take into account at the planning stage of       an audit exercise Read More …

  QUESTION ONE What is an audit? (2 marks) Explain the importance of audit to a limited liability company.(10 marks) In addition to shareholders, many different parties are interested in the audited accounts      of a company.  Name FOUR such Read More …

  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 ofCertified Public Accountants were re-appointed as auditors. However, Smith & Read More …

QUESTION ONE   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 cooperate with internal audit to keep total Read More …

  QUESTION 1  Explain how the objective of wealth maximisation differs from that of profit maximisation for a company listed at the securities exchange. Difference between goals of profit maximisation and wealth maximisation. Profit maximisation is the traditional approach which Read More …

FINANCE AND CAPITAL STRUCTURE   QUESTION 1 Explain three factors that might influence the capital structure decision. Two firms, Alpha Ltd. and Beta Ltd., operate in the same industry. The two firms are similar in all aspects except for their Read More …

FINANCIAL MARKETS QUESTION 1 Explain three functions of the central depository system (CDS) in your country.  Functions of central depository system (CDS) Immobilisation of securities, that is, elimination of physical movement of securities. Dematerialisation, that is, elimination of physical certificate Read More …