Auditing November 2014 Past Paper – KNEC Diploma

Auditing November 2014 Past Examination Question Paper

This Past Paper examination was examined by the Kenya National Examination Council (KNEC) and it applies to the following courses

• Diploma in Accountancy
  

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THE KENYA NATIONAL EXAMINATIONS COUNCIL
AUDITING
November 2014
3 hours

QUESTION ONE
a) Explain five reasons that may limit an audit plan from achieving its objectives. (10 marks)
b) Explain five challenges that an auditor may face when collecting audit evidence. (10 marks)

QUESTION TWO
a) Explain five reasons that make the independence of an auditor necessary in an audit assignment. (10 marks)
b) Outline ten errors that an auditor would guard against in the audit of stock of finished goods. (10 marks)

QUESTION THREE
a) Explain six ways in which an auditor may benefit from using sampling techniques when undertaking an audit assignment. (12 marks)
b) Explain four circumstances under which an auditor may give a disclaimer of opinion. (8 marks)

QUESTION FOUR
a) Kwete Limited deals in buying and selling of plastics containers. As an auditor of this firm, prepare an internal control questionnaire over credit purchases. (12 marks)
b) Explain four factors that may influence the use of analytical review technique by an auditor. (8 marks)

QUESTION FIVE
a) Explain six elements of a good internal audit function in an organization. (12 marks)
b) Describe the audit procedures an auditor would carry out in verifying cash in hand. (8 marks)

QUESTION SIX
a) Explain five ways an auditor may improve the efficiency of his audit work by using Computer Aided Audit Techniques (C A ATS). (10 marks)
b) Explain five advantages of using a standard audit programme. (12 marks)