Get premium membership and access questions with answers, video lessons as well as revision papers.
(a) The benefits of an audit to a partnership would include:
• Providing a convenient means of settling accounts between partners thus avoiding the
possibility of future disputes.
• The auditor may be able to make useful comments on the •firm's accounting and control
system, where necessary' making recommendations as to how areas of weakness can he
eliminated.
• The settlement and adjustment of accounts between partners on the occasion of any
change in the partnership structure will be facilitated where audited accounts arc
available.
• Where audited accounts are available, this will perhaps make them more readily
acceptable to the revenue authority when it comes to agreeing on individual partner's
liability to tax. The partners may well wish to take advantage of the auditor's review in
the additional role of tax advisor
• Credibility to the accounts is facilitated.
• The sale of the business or the negotiation of loan or overdraft facilities may well be
facilitated if the firm is able to produce properly prepared and audited accounts.
• An audit on behalf of a "sleeping" partner is highly advisable since generally such a
person will have little other means of checking he accounts of the business or
confirming the share of profits due to him.
• Detecting errors and frauds
(b) (i) Circumstance when continuous audit would be desirable
• When an entity is very large and run very complex systems the auditors may find that
they have to make several audit visits or have a continuous presence at the client's
premises carrying out audit work on the transactions as they occur. Such a situation
would he called a continuous audit.
• Continuous audit may also be necessary if there is a weak internal control system.
(ii) Advantages that would arise from a continuous audit include:
1. The continual or regular attendance of the auditor may act as a detriment againSt fraud.
2. Forms the basis to declare interim dividends.
3. Weaknesses in the client's systems and the related errors or irregularities are noticed
earlier and corrective action undertaken.
4. Understanding the clients business.-
5. It is sometimes possible to start balance sheet work before the year end. This will lead to
more timely reporting
6. The auditor's work is spread more evenly throughout the year. This will help to relieve
the pressure on staff that arises in many audit firms during the first months of the year.
Disadvantages include
1. Audit staff who spend much of their time working on one client may find their
independence adversely affected or their concentration diminished
2. It is costly and expensive.
3. The auditor's frequent (and sometimes unexpected) visits may cause inconvenience to the
client staff.
4. It is possible that figures may be altered (innocently or fraudulently) after they have been
audited it may be found that outstanding points and queries raised at one visit are
forgotten and not followed up at a later stage.
Kavungya answered the question on May 14, 2019 at 12:04
- a) Explain four steps that a prospective auditor should take before deciding whether or not
to accept nomination as an auditor of a limited liability company.
b)...(Solved)
a) Explain four steps that a prospective auditor should take before deciding whether or not
to accept nomination as an auditor of a limited liability company.
b) Explain any four purposes of sending a letter of engagement before an audit is accepted.
Date posted: May 14, 2019. Answers (1)
- a) Explain five basic principles that govern the auditor's professional responsibilities and
which should be complied with whenever an audit is carried out.
b) In the context...(Solved)
a) Explain five basic principles that govern the auditor's professional responsibilities and
which should be complied with whenever an audit is carried out.
b) In the context of developments in the audit approach over the years, .distinguish -between
"early audits" and "modern audits".
c) Describe three parties who benefit from using audited accounts.
Date posted: May 14, 2019. Answers (1)
- a) Other than auditing, outline five services that external auditors could provide to their
clients.
b) Discuss five functions of an internal audit department as per International...(Solved)
a) Other than auditing, outline five services that external auditors could provide to their
clients.
b) Discuss five functions of an internal audit department as per International Standard on
Auditing (ISA) 610 "Using the work of Internal Auditors".
Date posted: May 14, 2019. Answers (1)
- Discuss five advantages of an interim audit.(Solved)
Discuss five advantages of an interim audit.
Date posted: May 14, 2019. Answers (1)
- Office automation and advancement in information communication technology are likely to have
a major impact on business efficiency and the working life of employees;-
i. Outline six...(Solved)
Office automation and advancement in information communication technology are likely to have
a major impact on business efficiency and the working life of employees;-
i. Outline six types of office automation tools
ii. Examine five ways in which office automation may be used by management
Date posted: May 14, 2019. Answers (1)
- Briefly explain the use of virtual reality computing in the following fields:
(i) Military.
(ii) Education.
(iii) Medical.(Solved)
Briefly explain the use of virtual reality computing in the following fields:
(i) Military.
(ii) Education.
(iii) Medical.
Date posted: May 14, 2019. Answers (1)
- The information and connectivity of the internet have unique characteristics.
Briefly explain four such characteristics.(Solved)
The information and connectivity of the internet have unique characteristics.
Briefly explain four such characteristics.
Date posted: May 14, 2019. Answers (1)
- Briefly explain the meaning of the following terms as used in the context of information sharing:
(i) Bandwidth.
(ii) Browsing.
(iii) User net newsgroup.
(iv) File transfer protocol.(Solved)
Briefly explain the meaning of the following terms as used in the context of information sharing:
(i) Bandwidth.
(ii) Browsing.
(iii) User net newsgroup.
(iv) File transfer protocol.
Date posted: May 14, 2019. Answers (1)
- Explain four benefits of e-government.(Solved)
Explain four benefits of e-government.
Date posted: May 14, 2019. Answers (1)
- State three examples of internet service providers in your country.(Solved)
State three examples of internet service providers in your country.
Date posted: May 14, 2019. Answers (1)
- Highlight four factors that determine the downloading speed of a file from a website.(Solved)
Highlight four factors that determine the downloading speed of a file from a website.
Date posted: May 14, 2019. Answers (1)
- "The practice of telecommuting has ensured that there exists a thin line between work,,
family and leisure". In relation to the above statement, evaluate the merits...(Solved)
"The practice of telecommuting has ensured that there exists a thin line between work,,
family and leisure". In relation to the above statement, evaluate the merits and demerits of
telecommuting.
Date posted: May 14, 2019. Answers (1)
- Highlight four social-economic challenges brought about by the rapid advancements in
internet technology.(Solved)
Highlight four social-economic challenges brought about by the rapid advancements in
internet technology.
Date posted: May 14, 2019. Answers (1)
- Highlight four functions of an internet service provider (ISP)(Solved)
Highlight four functions of an internet service provider (ISP)
Date posted: May 14, 2019. Answers (1)
- In relation to internet technology, briefly describe the importance of each of the following:
i. Web server.
ii. Web browser.
iii. HTML.
iv. Cyber cafe(Solved)
In relation to internet technology, briefly describe the importance of each of the following:
i. Web server.
ii. Web browser.
iii. HTML.
iv. Cyber cafe
Date posted: May 14, 2019. Answers (1)
- (a) Briefly describe the flowing terms in relation to computer networking
i. Intranet. .
ii. Extranet,
iii. Global system for mobile (GSM) communication.
iv. Bluetooth.
(b) Explain the role of...(Solved)
(a) Briefly describe the flowing terms in relation to computer networking
i. Intranet. .
ii. Extranet,
iii. Global system for mobile (GSM) communication.
iv. Bluetooth.
(b) Explain the role of interface message processor (IMP) in a computer network.
Date posted: May 14, 2019. Answers (1)
- There is a global trend towards the adoption of digital data communication systems as opposed
to analog data communication systems.
Required:
Examine four advantages of digital data communication...(Solved)
There is a global trend towards the adoption of digital data communication systems as opposed
to analog data communication systems.
Required:
Examine four advantages of digital data communication systems over analog data
communication systems.
Date posted: May 14, 2019. Answers (1)
- a) Mr. Shadrack Kalamba a technician with Icon Systems Technology Ltd. is setting up a local
area network (LAN) for a client
Required:
i) Identify four network devices...(Solved)
a) Mr. Shadrack Kalamba a technician with Icon Systems Technology Ltd. is setting up a local
area network (LAN) for a client
Required:
i) Identify four network devices that he would use in setting up the LAN.
ii) State six advantages of a LAN.
b) Expound the following acronyms as used in computing:
i) TCP.
ii) FTP.
iii) HTTP.
iv) HTML.
v) WWW.
vi) IP.
Date posted: May 14, 2019. Answers (1)
- Transmission of data over computer networks raises certain security concerns.
Identify two possible causes of data insecurity and two mitigations that could be taken to secure
data.(Solved)
Transmission of data over computer networks raises certain security concerns.
Identify two possible causes of data insecurity and two mitigations that could be taken to secure
data.
Date posted: May 14, 2019. Answers (1)
- a) Define the term “world wide web”
b) The surface simplicity of the website is in fact that many individual protocols can be
contained within a single...(Solved)
a) Define the term “world wide web”
b) The surface simplicity of the website is in fact that many individual protocols can be
contained within a single website.
Required
i) Define the term “Protocol”
ii) Describe any four protocols used in the World Wide Web.
iii) Outline four ways of accessing web pages.
Date posted: May 14, 2019. Answers (1)