Category: Auditing and Assurance

QUESTION ONE (a) International Standard on Auditing (ISA) 505 — External confirmations, considers a number of different types of external confirmations including accounts receivable confirmations. Required: (i) Distinguish between a “positive confirmation” and a “negative confirmation”. (4 marks) (ii) Evaluate Read More …

QUESTION ONE You are an audit manager in Ujima& Co. One of your audit clients, Shangilia Africa Ltd. is a specialist supplier of African literature books with over 120,000 customers. The company owns one large warehouse which holds about 1 Read More …

QUESTION ONE (a) (i) Define the term “forensic accounting”. (1 mark) (ii) Explain a situation in which forensic accounting might be applied. (1 mark) (b) Discuss the three E’s of value for money auditing as used in public sector auditing. Read More …

QUESTION ONE (a) In the context of International Standards of Auditing (ISA) 210 “Agreeing the Terms of Audit Engagements’’, discuss six steps the auditor should undertake to establish whether the pre-conditions for an audit were present. (12 marks) (b) In Read More …

QUESTION ONE (a) In the context of International Standards of Supreme Auditing Institutions 3100. “Performance Audit Guidelines – Key Principles”: (i) Define the term “performance auditing”. (2 marks) (ii) Discuss the three approaches that might be taken in examining the Read More …

QUESTION ONE (a) Discuss five disclosure requirements that should be made in an audit report as specified in the Companies Act. (10 marks) (b) Your firm has been appointed as the auditor of Fanaka Limited for the year ended 3 Read More …

QUESTION ONE (a) Auditors carry out various audit assignments. In relation to the above statement, explain four non-assurance assignments that auditors undertake. (4 marks) (b) Describe three circumstances in which the management of an organisation might request the auditor to Read More …

QUESTION ONE (a) Describe the procedures you would apply in detecting fraud where employees create non-existent suppliers and thendivert payments to themselves. (8 marks) (b) International Standard on Review Engagements (ISRE) 2400 “Engagements to review Financial Statements” sets out the Read More …

QUESTION ONE (a) Analyse two types of threats that might arise from an audit firm accepting to undertake non-audit related services to its client. (4 marks) (b) In the context of the Companies Act, outline four statutory rights of an Read More …

QUESTION ONE The Finance Director of Usonga Ltd. has informed you that some fraud took place during the year in the company’s payroll department. A number of fictitious employees were set up on the payroll and wages were paid into Read More …