The Company‘s Act section 161 covers the circumstances under which one is ineligible for appointment as an auditor section 161(1): A person or firm is not qualified for appointment as an auditor (or in the case of a firm, every partner of the firm) unless he is a holder of a practicing certificate issued pursuant to Section 21 of the Accountants Act 1977. Such a certificate is issued under the following conditions: -
a) A person with CPA (III) qualification
b) A person with at least 3 years post graduate experience in auditing or an accounting environment
c) A person registered with RAB (Registration of Accountants Board)
d) A person registered with KASNEB
e) A person who is a member of ICPA (K.)
Section 161 (2): None of the following persons shall be qualified as an auditor of a company
a) A servant of a company
b) A person who is a partner or is in employment of an officer or servant of a company
c) A body corporate
Section 161 (3): A person cannot be qualified for appointment if he has by virtue ofsubsection (2) above, been disqualified as an auditor of a body corporate which isthat company‘s subsidiary or holding company or subsidiary of that company‘s holding company.
Wilfykil answered the question on February 21, 2019 at 11:34
- You have received a request form XYZ Ltd. to accept an appointment as their auditor for the financial year ending 31 December 2001(Solved)
You have received a request form XYZ Ltd. to accept an appointment as their auditor for the financial year ending 31 December 2001
Required:
a) Explain the preliminary procedures you would carry out upon your appointment.
b) What is the importance of a preliminary review?
c) Why is it important for the auditor to hold discussions with the client‘s senior staff?
d) State why it is important for an incoming auditor to hold consultations with the outgoing auditor.
Date posted: February 21, 2019. Answers (1)
- You have been appointed the auditor of United Millers Company Limited, a medium manufacturing company which is quoted on the stock exchange.(Solved)
You have been appointed the auditor of United Millers Company Limited, a medium manufacturing company which is quoted on the stock exchange.
Required:
a) List the important matters which must be included in the letter of engagement.
b) Explain the purpose of such a letter
Date posted: February 21, 2019. Answers (1)
- A company wishes to change from an old computerised system to a new computer based accounting system. Explain how and why both systems should run...(Solved)
A company wishes to change from an old computerised system to a new computer based accounting system. Explain how and why both systems should run parallel prior to the change over the new system
Date posted: February 21, 2019. Answers (1)
- State six examples of controls to prevent unauthorised changes to data files that you would expect to find in a new computer based accounting system(Solved)
State six examples of controls to prevent unauthorised changes to data files that you would expect to find in a new computer based accounting system
Date posted: February 21, 2019. Answers (1)
- In the context of a computer based accounting system, explain the meaning of the following terms:
i) Application controls
ii) General controls(Solved)
In the context of a computer based accounting system, explain the meaning of the following terms:
i) Application controls
ii) General controls
Date posted: February 21, 2019. Answers (1)
- You have been asked by your firm to examine the payment vouchers of a company to establish the level of errors and then decide whether...(Solved)
You have been asked by your firm to examine the payment vouchers of a company to establish the level of errors and then decide whether better results can be obtained through statistical techniques.
Required:
a) State the steps you would take in order to test the vouchers for the errors.
b) Why is it not satisfactory to pick vouchers from a limited period?
c) State under what circumstances statistical sampling is a good technique
Date posted: February 21, 2019. Answers (1)
- Write brief explanatory notes on the following audit terms:
a) Control procedures;
b) Internal check;
c) Vouching audit;
d) Walk-through tests;
e) Weakness tests;(Solved)
Write brief explanatory notes on the following audit terms:
a) Control procedures;
b) Internal check;
c) Vouching audit;
d) Walk-through tests;
e) Weakness tests;
Date posted: February 21, 2019. Answers (1)
- Outline the statutory provisions with regard to duties of external auditors(Solved)
Outline the statutory provisions with regard to duties of external auditors
Date posted: February 21, 2019. Answers (1)
- Explain the value derived from the work of external auditors.(Solved)
Explain the value derived from the work of external auditors.
Date posted: February 21, 2019. Answers (1)
- Write briefly explanatory notes on the following types of audit:
i. Statutory audit;
ii. Private audit;
iii. Balance sheet audit;
iv. Management audit;(Solved)
Write briefly explanatory notes on the following types of audit:
i. Statutory audit;
ii. Private audit;
iii. Balance sheet audit;
iv. Management audit;
Date posted: February 21, 2019. Answers (1)
- The director of one of your growing clients have decided to create an internal audit function in their organizational structure(Solved)
The director of one of your growing clients have decided to create an internal audit function in their organizational structure
Required:
a) List and briefly describe the duties you would expect the internal audit staff to perform.
b) List and explain the criteria which you would consider before deciding to rely on the work of the internal audit function.
c) State the extent to which you, as an external auditor, can rely on the work of the internal audit function.
Date posted: February 21, 2019. Answers (1)
- Describe the various procedures of obtaining audit evidence giving an example of each by way of illustration.(Solved)
Describe the various procedures of obtaining audit evidence giving an example of each by way of illustration.
Date posted: February 21, 2019. Answers (1)
- Write a brief explanatory notes on the following terms in relation to audit evidence:
i. Relevance.
ii. Reliability.
iii. Sufficiency.(Solved)
Write a brief explanatory notes on the following terms in relation to audit evidence:
i. Relevance.
ii. Reliability.
iii. Sufficiency.
Date posted: February 21, 2019. Answers (1)
- Explain the meaning of the "audit evidence"(Solved)
Explain the meaning of the "audit evidence"
Date posted: February 21, 2019. Answers (1)
- Explain the meaning of the following audit terms:
i. Tests of control.
ii. Substantive tests.(Solved)
Explain the meaning of the following audit terms:
i. Tests of control.
ii. Substantive tests.
Date posted: February 21, 2019. Answers (1)
- List six examples of key control questions that would be suitable for inclusion in an ICEQ for a wages accounting system.(Solved)
List six examples of key control questions that would be suitable for inclusion in an ICEQ for a wages accounting system.
Date posted: February 21, 2019. Answers (1)
- Explain how an Internal Control Evaluation Questionnaire (ICEQ) differs from an Internal Control Questionnaire (ICQ).(Solved)
Explain how an Internal Control Evaluation Questionnaire (ICEQ) differs from an Internal Control Questionnaire (ICQ).
Date posted: February 21, 2019. Answers (1)
- Give four merits of using a flowchart to record an accounting system.(Solved)
Give four merits of using a flowchart to record an accounting system.
Date posted: February 21, 2019. Answers (1)
- The auditing standard on subsequent events provide the basic principles and procedures as to the auditor‘s responsibilities and deal with:
i. Dating the auditor‘s report
ii. Audit...(Solved)
The auditing standard on subsequent events provide the basic principles and procedures as to the auditor‘s responsibilities and deal with:
i. Dating the auditor‘s report
ii. Audit procedures
iii. Events after the date of the audit report.
Required:
a) In the context of subsequent events, what is the significance of the data of the auditor‘s report?
b) Outline the audit procedures considered necessary between the balance sheet date and the date of the auditor‘s report.
c) Summarise the appropriate actions of the auditor regarding events after the date of the audit report.
Date posted: February 21, 2019. Answers (1)
- Specialists or experts are occasionally required by external auditors mainly in connection with the valuation assets and the determination of liabilities.(Solved)
Specialists or experts are occasionally required by external auditors mainly in connection with the valuation assets and the determination of liabilities.
Required:
a) The necessity for reliance on specialist.
b) The extent to which the specialist should be independent?
c) Competence of the specialist.
Date posted: February 21, 2019. Answers (1)