Day: February 22, 2021

QUESTION 1 Maxwell and Associates, an audit firm comprising three professional accountants has been in operation for the past three years. The staff in the firm includes two junior auditors and two trainees. The firm’s clients include small companies, partnership Read More …

QUESTION 1 Kenya Lab Instruments Ltd. is an established manufacturing company producing laboratory instruments. The following extracts are from the company’s final draft statement of financial position and income statement for the year ended 30 April 2015. Income statement:   Read More …

QUESTION 1 You are an audit manager in Hasibu and Co. working on the audit of Safari Group (The Group), whose financial year ended on 31 March 2015. This is the first time you have worked on group audit. The Read More …

QUESTION I Public sector auditing refers to the examination of and control of government receipts and payments with a view of assessing the benefits derived from the use of public property, utility or service and evaluate level of responsibility and Read More …

QUESTION 1 Your audit firm, Ricky Rose and Co., Certified Public Accountants have recently been appointed the auditors of Impact Group Ltd. which is a highly geared manufacturing concern: The holding company is based in Nairobi with several small manufacturing Read More …

QUESTION I You are the audit manager of Kilimanjaro Co., a company which designs and manufactures aircraft engine parts. The audit of the financial statements for the year ended 31 December 2015 is nearing completion and you are reviewing the Read More …

QUESTION 1 Your firm audits H-Pound Ltd., a recognized East Africa’s premier engineering construction and infrastructure company that undertakes construction contracts which include roads, bridges, warehouses, factories and offices. H-Pound Ltd.customers include governments and businesses. Recent cut-backs in local government Read More …

QUESTION l Explanation of the term money laundering with examples of money laundering offences including those which could be committed by an accountant. Money laundering is a process of criminal act of concealing the true identity of the source of Read More …

QUESTION I Explain the factors which have contributed to the increased number of lawsuits against auditors from third parties in recent years. Non-compliance to standards Increased consciousness of information from regulators e.g. CMA  Changes in law replacing auditors responsibility Read More …

QUESTION 1 a) Six matters that should be considered before accepting the audit engagement Assess whether the engagement is within the provisions of the Company’s Act. Look at independence and ensure it won’t be compromised Size and complexity of the Read More …