TUESDAY: 25 April 2023. Afternoon Paper.                                                                    Time Allowed: 3 hours.

Answer ALL questions. Marks allocated to each question are shown at the end of the question. Do NOT write anything on this paper.


1. During the planning of an audit for Jikaze Ltd., who is your new client, the Audit Supervisor emphasised for more time to be allocated in peer reviewing of the audit working papers to ensure that the audit findings are well supported by sufficient audit evidence.


  • Explain FIVE objectives of undertaking peer review (5 marks)
  • Propose FIVE reasons for maintaining good audit working papers (5 marks)

2. You are the Audit Manager for Hesabu Audit Firm (CPA-K). Directors of SKL Ltd have appointed your firm as their new auditors to take over in the upcoming financial year. The directors are of the opinion that the current auditors do not give value for money audit.


Describe THREE ethical matters you might take into consideration before your firm could accept the appointment as auditors of SKL Ltd.    (6 marks)

3. Enumerate FOUR factors that professional accountants might consider in deciding whether to disclose confidential information in the course of an audit (4 marks)

(Total: 20 marks)


Your internal audit department is in the process of installing an audit software that would assist in continuously analysing the huge data generated by the business operations within the organisation. The Head of Internal Audit has requested you to prepare a checklist of suitable access controls that the developers could ensure are installed in the organiation audit software.


  • Recommend FIVE suitable access controls for the audit software  (10 marks)
  • Highlight SIX contents of a current audit file (6 marks)
  • State FOUR criteria which disqualifies a person from acting as the external auditor of a company (4 marks)

(Total: 20marks)


1. Amani Ltd. is a company that supplies pharmaceutical products. The company has been your client for the last five years. The company recently transited from the manual operations to computerised work environment. This has also initiated changes in the audit process through usage of Computer Assisted Audit Techniques (CAATs).


  • Explain FOUR advantages of adopting Computer Assisted Audit Techniques (CAATs) in auditing (4 marks)
  • Propose FIVE factors to consider when using Computer Assisted Audit Techniques (CAATs). (5 marks)

2. Your firm has recently recruited a team of new auditors under a Graduate Trainee Program. As part of induction, you are required to train them on reliability of audit evidence.


  • Present to the team THREE factors that might influence the level of reliability of audit evidence(6 marks)
  • Highlight FIVE duties of an external auditor (5 marks)

(Total: 20 marks)



1. Jackie and Paul Associates, a recently established audit firm, has many new The Senior Auditor has appointed you to lead an audit assignment on one of these new clients.


Discuss SIX audit procedures you could undertake when planning the audit for a new client.  (6 marks)

2. You have been appointed as the first auditor of ABC Ltd. In the process of gaining understanding of the business of the company, you have realised that the company has a weak internal control system


Analyse FOUR actions you might take when an internal control system is identified as weak.    (4 marks)

3. Evaluate SIX benefits that could accrue to a partnership business upon conducting a statutory audit  (6 marks)

4. State FOUR fundamental principles that auditors are required to adhere to in the course of their audit work. (4 marks)

(Total: 20 marks)


1. Discuss TWO reasons why it is important to obtain a good understanding of the client’s industry and external (4 marks)

2. Explain FOUR advantages of planning in the conduct of an audit (4 marks)

3. Describe SIX internal control procedures for a purchasing unit of an organisation (12 marks)

(Total: 20 marks)

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