Your client, ABC Ltd. has a system for inputting purchase and expense invoice where the operator inputs the following from each item. Order number (a code 2221 is used for items like electricity) Supplier name Supplier code number First four letters of nominal account name (entered on invoice by purchase department manager) Nominal account code (entered by purchase department manager) Date Goods inward note number Net amount VAT amount Gross amount Required: List some audit tests that could be applied to these items indicating the purpose of each test and the relevant audit evidence obtained

Audit Tests
1. The auditor should inspect the invoice for the date to ensure that it relates to the client‘s financial period.
2. The auditor should consider whether the supplier‘s name appears on the list for authorized suppliers of the company to determine whether orders to such supplier are authorized.
3. The auditor should recompute the value of the invoice and compare with that on the invoice to ensure arithmetic accuracy of the invoice.
4. The auditor should compare the goods inward note content with the stock records to ensure that goods were infact received by the company.

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Your client, ABC Ltd. has a system for inputting purchase and expense invoice where the operator inputs the following from each item. Order number (a code 2221 is used for items like electricity) Supplier name Supplier code number First four letters of nominal account name (entered on invoice by purchase department manager) Nominal account code (entered by purchase department manager) Date Goods inward note number Net amount VAT amount Gross amount Required: Suggest input controls that might be applied by the program to these items
Your client, ABC Ltd. has a system for inputting purchase and expense invoice where the operator inputs the following from each item. Order number (a code 2221 is used for items like electricity) Supplier name Supplier code number First four letters of nominal account name (entered on invoice by purchase department manager) Nominal account code (entered by purchase department manager) Date Goods inward note number Net amount VAT amount Gross amount Required: Suggest manual operation and controls which might previously have applied to these invoices
Meaning of hire purchase agreement
Write briefly explanatory notes on the following types of audit: Statutory audit, Private audit, Balance sheet audit and Management audit;
Obligations of hirer who terminates a hire purchase agreement before payment of the full hire purchase price
Requirements for hire purchase to be enforceable
Define the term audit programme
How does audit planning assist in the conduct of an audit?
Consequences of not registering a hire purchase agreement
Consequences of not registering a hire purchase agreement
Write brief explanatory notes on the following audit terms: Vouching audit;
Effects of non-registration of a hire purchase agreement
Difference between Sales and Hire Purchase
Duties of the hirer in a hire purchase agreement
Explanation of the term hire "purchase"
Legal consequences of non registration of a hire purchase agreement
Provisions governing termination of hire purchase agreement by the hirer
Consequences of contravening the two-thirds rule in hire purchase agreement
Duties of the owner of goods in a hire purchase agreement
Distinction between a “hire purchase agreement” and a “conditional sale agreement”
Explain the legal consequences of non-registration of a hire-purchase agreement
Explain five implied conditions and warranties in a hire purchase agreement
Information which must be contained in a written memorandum of hire purchase
Define and explain the meaning of an audit programme
Explain the rights and duties of the owner of goods in a hire-purchase agreement
What specific actions can an individual auditor or audit firm take to minimize liability arising from audit risk?
Under Section 7 of the Hire Purchase Act Cap 507, Laws of Kenya, certain provisions are deemed void if contained in a hire purchase agreement; .Identify and explain five such provisions
Explain how a hire purchase agreement differs from: A credit sale agreement and A conditional sale agreement
Write brief explanatory notes on the following audit terms:Walk-through tests
Write brief explanatory notes on the following audit; Weakness tests terms
Write brief explanatory notes on the following audit terms:Control procedures;
Write brief explanatory notes on the following audit terms:Internal check;
Explain the auditor‘s planning process when planning for an audit of a new client
List three disadvantages of using standardized audit programmes and how these disadvantages can be avoided
Hesabu, an accountant of Speed Company Ltd, prepared a bearer cheque for Haraka‟s signature who was the duly authorized signatory. The amount appeared in figures as Sh. 2000, but the amount was not written in words. Haraka signed a cheque. Hesabu then altered the amount to read Sh. 20,000 and he indicated the amount in words, withdrew Shs. 20,000 from the company‟s account. Hesabu handed over Sh. 2000 to Haraka butpocketed the 18,000 being the difference between Sh. 20,000 and Sh. 2,000. Speed
Working papers provide the audit evidence. They can be categorized into: Auditors‘ prepared working papers, Client‘s schedules used as working papers , Audit programmes.Working papers are then organized into files usually referred to as either current files of permanent files.Required:c) What details should an audit programme indicate?
Why is an external audit necessary for companies registered under the Companies Act ?
Explain the meaning of the following audit terms: Tests of control. ,Substantive tests
Draft an online audit programme for the fixed assets of a large manufacturing company
The director of one of your growing clients have decided to create an internal audit function in their organizational structure. Required: List and briefly describe the duties you would expect the internal audit staff to perform

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