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Hbc2214:Auditing I Question Paper

Hbc2214:Auditing I

Course:Bachelor Of Commerce

Institution: Meru University Of Science And Technology question papers

Exam Year:2012

QUESTION ONE (30 MARKS)
(a) Distinguish clearly between accountancy and auditing ( 2 Marks) (b) Describe two classes of error which may be detected when carrying out an audit ( 2 Marks) (c) Define and illustrate teaming and lading. ( 3 Marks) (d) What matters would be covered in the conduct of survey when commencing a new audit ( 4 Marks) (e) Discuss the duties of an auditor. (4 Marks) (f) What principles govern the subjects matter of audit report writing? ( 4 Marks) (g) Discuss the rights of the auditors to a business organization for (i) Statutory bodies ( 4 Marks) (ii) Non-statutory bodies ( 4 Marks)
(b) What at the condition under which audit evidence is more valid. ( 4 Marks)
QUESTION TWO
(a) Discuss the importance of internal control systems in an organizations. (b) Discuss FIVE components on internal controls (c) Discus three limitation of internal control systems
QUESTION THREE
(a) Describe the procedures to be followed in accepting an new audit engagement. (b) How should the auditors carry out specific tests o on its balance sheet stock valuation. (c) (i) What is an audit programme (ii) Give two advantage and two disadvantages of an audit programme.
QUESTION FOUR ( 20 MARKS)
You are conducting the first audit of the marketing activities of your organization. Your preliminary survey has disclosed indications of deficient conditions of a serous nature. You expect your audit work to document its need for substantial corrective action.. You feel certain that your audit report will contain descriptions of a number of serious defects. Your preliminary meeting with the director of the marketing division and its principal subordinates gave you reason to believe that they will be defensive that you audit report will receive a chilly reception your stated facts are likely to be challenged and that any difficult conditions reported will be derived or minimized. (a) Identify the aspect of the standards for the professional practice of internal auditing that applies to the problem described above. (8Marks) (b) Describe four techniques that you might use to improve the chances that your report will be well received and that appropriate corrective action will be taken. ( 7 Marks) (c) Suggest two ways in which the independence of the internal auditing department can be enhanced. ( 5 Marks)
QUESTION FIVE ( 20 MARKS)
(a) Discuss FIVE measures that may be used to minimise auditors liabilities. (10 Marks) (b) Discuss the types of auditors opinion. ( 6 Marks) (c) Discuss FOUR advantages of auditing. ( 4 Marks)

Hbc2214:Auditing I Question Paper

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