TUESDAY: 5 April 2022. 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.  Propose four types of audit softwares that the auditor could utilise in his work.                (8 marks)

2. Explain the term “International Standards on Auditing (ISAs)”.                                            (2 marks)

Describe six roles played by International Standards on Auditing (ISAs).                               (6 marks)

3. Distinguish between the following terms “Disclaimer of Opinion” and “An except for Opinion”.         (4 marks)


Tamasha Ltd. is your new client; dealing with entertainment business in the region.  The company has an Internal Audit Department that was established two years ago.  Your supervisor has requested you to undertake an evaluation on reliance on the work of the Internal Audit Department in undertaking your external audit exercise.


Describe six factors you would consider in undertaking the exercise.                                     (12 marks)

Explain four rights of an auditor.                                                                                                      (8 marks)

(Total: 20 marks)


1. Distinguish between “Inherent risk” and “Detection risk”.                                                      (4 marks)

Describe two limitations of a risk based audit.                                                                                (4 marks)

2. List five items covered in the auditors note book.                                                                      (5 marks)

3. Auditors are required to obtain sufficient knowledge about the clients’ entity in order to develop an effective plan for performance of audit.


Explain four ways in which the knowledge obtained by the auditors will be useful in proper execution of the audit for their clients.                                                                                           (4 marks)

4. As a newly employed Audit Associate with one of the big four audit firms, design three tests you would perform to obtain satisfaction of the cash and bank balances.                                      (3 marks)

(Total: 20 marks)


1. Evaluate four signs that indicate the existence of errors, frauds or irregularities in the business records and financial statements prepared by a client.                                                                 (8 marks)

2. Explain the term “professional independence” as used in audit of financial statements.  (2 marks)

Citing  three  reasons,  explain  why  it  is  important for an auditor to be  seen  to  be  independent. (6 marks)

3. Describe four benefits that could accrue to auditors from performing automated audit procedures in the course of their audit.                                                                                             (4 marks)

(Total: 20 marks)


  1.   Analyse four differences between “internal auditing” and “external auditing”.                                                                    (8 marks)
  2. Public Limited Companies are required to prepare and publish audited financial statements and auditors’ report at the end of every financial year. Summarise five users of the audited financial statements and auditor’s report including their areas of interest.  (5 marks)
  3. Describe seven matters contained in the audit planning memorandum.                                                                               (7 marks)

(Total: 20 marks)

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