Schemes of Work
Lesson Plans
Notes
Exams
Holiday Assignments
Tests
Forum
Q&A
Lessons
Past Papers
Colleges
Courses
Login
|
Register
|
Jobs
Get premium membership
and access revision papers, questions with answers as well as video lessons.
Auditing I Question Paper
Auditing I
Course:
Bachelor Of Commerce
Institution:
Kca University question papers
Exam Year:
2011
UNIVERSITY EXAMINATIONS: 2010/2011
SECOND YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
CAA 203 A: AUDITING I (SATURDAY)
DATE: AUGUST 2011 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
Question One
You have recently been appointed auditor of Hagard Ltd. a quoted company which owns several hotels
in the EastAfrican region. The company has an established audit department which is based at the
head office in Mombasa, Kenya, and makes regular audit visits to the Company branches in the region.
Required:
a) Describe the work you would expect to be carried out by the internal audit staff of Hagard Ltd.
(5 Marks)
b)The appropriateness of the audit evidence is determined by its quality that relates to its:
?? Relevance.
?? Reliability.
?? Consistency.
Illustrate what is meant by the three terms giving examples. (3 Marks)
c) Highlight the factors you would consider when assessing the extent to which you would rely on
the work of the internal audit department. (4 Marks)
d)State why its important for an incoming auditor to hold conversation with an outgoing auditor
(4 Marks)
2
e) Audit Planning is preceded by auditor knowledge of the client business. Explain the general
matters to be considered by an auditor while taking up an engagement and the major sources of
obtaining information about the client’s business. (6 Marks)
f) Outline the need of an engagement letter in a re-appointment audit. (1 Mark)
g)Outline the fundamental principles of The Code of Ethics (4 Marks)
h)Describe the types of representations that may be obtained from the management by an auditor.
(3 Marks)
Question Two
Marende Ltd. is an import and export company located in Thika . The company deals in the
importation and exportation of various goods for direct sales to retailers on both credit and cash terms.
You are employed as an audit Manager by Muka & Company Auditors currently engaged in the
statutory audit of the company’s books.
Required:
a) Describe the main internal controls that you would expect to find in operation with regard to the
company’s sales and receivables. (6 Marks)
b)Briefly explain the inherent limitations that might hinder the effective operation of an internal
control system over sales and receivables in Marende Ltd (6 Marks)
c) Audit risk is the product of Inherent Risk, Control Risk and Detection Risk.
i.Define Inherent Risk, Control Risk and Detection Risk (3 Marks)
ii. Discuss these in the context of Marende Ltd sales and receivables. (5 Marks)
Question Three
a) State and explain the circumstances in which an auditor may give a qualified audit report.
(8 Marks)
b)State and explain the type of opinion that should be expressed in the auditor’s report in each of
the following situations:
i.A debtor owing a large amount of money is unable to pay a client company and the directors
have not made an allowance for bad and doubtful debts. (4 Marks)
ii. A client company has changed its accounting policy during the current financial year and
there is no retrospective adjustment. (4 Marks)
iii.There is disagreement over treatment of a material amounts in the accounts (4 Marks)
3
Question Four
a) Describe the various procedures of obtaining audit evidence giving an example of each by way
of illustration. (10 Marks)
b)Discuss the auditor’s responsibilities with regards to the detection and prevention of frauds and
errors. (2 Marks)
c) State what actions an auditor would take if the director refused to provide him with a letter of
representation (4 Marks)
d)Outline the benefits that can be derived by an audit from the successful employment of
statistical sampling techniques as opposed to non-statistical sampling. (4 Marks)
Question Five
Threats to independence of an auditor can broadly be categorized into 5 types.
a) Identify these threats and give examples (10 Marks)
b) Using examples outline the possible safeguards that an auditor can apply against these threats.
(5 Marks)
c) Outline the factors that an auditor will consider prior to accepting re-appointment. (5 Marks)
Subscribe to View Content
Subscribe to View Content
More Question Papers
Mism 5101: Object Oriented Technologies
Bit 1207A: Principles Of Database Design
Bit 4302 Telecommunications
Mism 5203: Data Mining
Mism 5203: Decision Support Systems
Mism 5301: Operating Systems Management
Auditing I
Bit 1204: Fundamentals Of Organizational Management
Bit 1206: Discrete Mathematics (Distance Learning)
Bit 1206: Discrete Mathematics Day
Bit 1207: Computer Applications Software (Distance Learning)
Bit 1303: Ecommerce
Bit 1305 Bbit 103: Computer Networks And Management
Bit 1309: Financial Management For It
Bit 2106 Software Engineering Principles (Day)
Bit 2107 Object Oriented Analysis &Amp; Design
Bit 2109 Professional Issues In It
Bit 2109 Professional Issues Of Information Technology (Distance Learning)
Bit 2203 Strategic Management Information Systems
Bit 2204A Java Programming
Bit 2209 2301 Research Skills
Bit 2301A 2304 Computer Graphics
Bit 2303 Distributed Systems (Day)
Bit 2305 Ict Project Management
Bit 2308 Human Computer Interaction (Distance Learning)
Bit 2311 Network Systems Design And Management
Bit 3101A Bbit 106 Data Structures And Algorithms
Bit 3102 Information System Security And Cryptography (Weekend)
Bit 3107 Wireless Networks Technologies
Bit 3201A Data Warehousing And Data Mining (Day)
Bit 3201A Data Warehousing And Data Mining (Weekend)
Bit 3202A Bit4306 Distributed Databases
Bit 3204 Bct 1204 Distributed Multimedia Multimedia Technology
Bit1301: Probability And Statistics
Business Finance
Business Law 1
Business Studies
Computer Applications
Computer Software Applications
E-Commerce
E-Commerce
E-Commerce
Electronic Commerce (Weekend)
Event Driven Programming
General Economics
Intermediate Microeconomics
Management Mathematics Ii
Mism 5101: E-Business Architecture &Amp; Systems
Mism 5103: Business Process Modelling
Mism 5201: Www Database Integration And Ecommerce
Enhance your teaching with our comprehensive Schemes of Work and Notes!
Popular Exams
Grade 1 End of Term 2
Grade 2 End of Term 2
Grade 3 End of Term 2
Grade 4 End of Term 2
Grade 5 End of Term 2
Grade 6 End of Term 2
Grade 7 End of Term 2
Grade 8 End of Term 2
PP1 End of Term 2
PP2 End of Term 2
Playgroup End of Term 2
Form 1 End of Term 2
Form 2 End Term of Term 2
Form 3 End of Term 2
Form 4 End of Term 2
Mid Term Exams
Playgroup Mid Term 2
PP1 Mid Term 2
PP2 Mid Term 2
Grade 1 Mid Term 2
Grade 2 Mid Term 2
Grade 3 Mid Term 2
Grade 4 Mid Term 2
Grade 5 Mid Term 2
Grade 6 Mid Term 2
Grade 7 Mid Term 2
Grade 8 Mid Term 2
Form 1 Mid Term Exams
Form 2 Mid Term Exams
Form 3 Mid Term
Form 4 Mid Term
CBC Assessment Tests
End Term 1 Exams
PP1 End Term 1
PP2 End Term 1
Grade 1 End of Term 1
Grade 2 End of Term 1
Grade 3 End of Term 1
Grade 4 End of Term 1
Grade 5 End of Term 1
Grade 6 End of Term 1
Grade 7 End of Term 1
Grade 8 End of Term 1
Form 1 End of Term 1
Form 2 End Term of Term 1
Form 3 End of Term 1
Form 1 End of Term 3
Form 4 End of Term 1
End Term 3 Exams
Form 2 End Term of Term 3
Form 3 End of Term 3
Form 3 Mid Term Exams
Form 4 Mid Term Exams
Form 4 Term 2 Mock Exams
PP1 End Term 3
Grade 1 End of Term 3
Grade 2 End of Term 3
Grade 3 End of Term 3
Grade 4 End of Term 3
Grade 5 End of Term 3
Opener Exams
Grade 1 Opener
Grade 2 Opener Exams
Grade 3 Opener Exams
Grade 4 Opener Exams
Grade 5 Opener Exams
Grade 6 Opener Exams
Grade 7 Opener Exams
Grade 8 Opener Exams
Form 1 Opener
Form 2 Opener
Form 3 Opener
Form 4 Opener
PP1 Opener
PP2 Opener
Form 3 Opener
Form 4 Opener
Full Set Exams
Playgroup End Term 2
PP1 End Term 2
PP2 End Term 2
Grade 1 End Term 2
Grade 2 End Term 2
Grade 3 End Term 2
Grade 4 End Term 2
Grade 5 End Term 2
Grade 6 End Term 2
Grade 7 End Term 2
Grade 8 End Term 2
Form 1 End Term 2
Form 2 End Term 2
Form 3 End Term 2
Form 4 End Term 2
Form 1 Term 2 Opener Exams
Form 2 Term 2 Opener Exams
Form 3 Term 2 Opener Exams
Form 4 Term 2 Opener Exams
Playgroup Mid Term 2
PP1 Mid Term 2
PP2 Mid Term 2
Grade 1 Mid Term 2
Grade 2 Mid Term 2
Grade 3 Mid Term 2
Grade 4 Mid Term 2
Grade 5 Mid Term 2
Grade 6 Mid Term 2
Grade 7 Mid Term 2
Grade 8 Mid Term 2
Form 1 Mid Term 2 Exams
Form 2 Mid Term 2 Exams
Form 3 Mid Term 2 Exams
Form 4 Mid Term 2 Exams
Playgroup Term 2 Opener
PP1 Term 2 Opener
PP2 Term 2 Opener
Grade 1 Term 2 Opener
Grade 2 Term 2 Opener
Grade 3 Term 2 Opener
Grade 4 Term 2 Opener
Grade 5 Term 2 Opener
Grade 6 Term 2 Opener
Grade 7 Term 2 Opener Exams
Grade 8 Term 2 Opener
Grade 1 End of Term 1
Grade 2 End of Term 1
Grade 3 End of Term 1
Grade 4 End of Term 1
Grade 5 End of Term 1
Grade 6 End of Term 1
Grade 7 End of Term 1
Grade 8 End of Term 1
Form 1 End Term 1 Exams
Form 2 End Term 1 Exams
Form 3 End Term 1 Exams
Form 4 Paper 1 and 2 End Term 1 Exams
Form 4 Paper 3 End Term 1 Exams
Return to Question Papers
 
Quick Links
Buy Primary and High School Exams
PP1 Schemes of Work
PP2 Schemes of Work
Grade 1 Schemes of Work
Grade 2 Schemes of Work
Grade 3 Schemes of Work
Grade 4 Schemes of Work
Grade 5 Schemes of Work
Class 6 Schemes of Work
Grade 7 Schemes of Work
Grade 8 Schemes of Work
Form 1 Schemes of Work
Form 2 Schemes of Work
Form 3 Schemes of Work
Form 4 Schemes of Work
Browse all past papers
Search for courses
Search for a college
Search for a university
Search for a school
Schemes of Work
New CBC Report Cards
Class Notes
Lecture Notes
Study Guides