State the evidence, which you, as the auditor, would like to find in place and pay attention to when vouching the following payments made by RR Paper Mills Ltd., during the financial year ended 31 October 2002. The last call on 5, 000 ordinary shares at Sh, 15 per share

Last call on 5,000 ordinary shares at sh.15 per share.
Verify that the call has been made in accordance with the terms of the issue.
Inspect paid cheques for cash paid on the last call.
Inspect any cancelled share certificates for which the company never honoured the last call.
Verify that proper authority was obtained to make the payment

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Distinguish between a company limited by shares and a company limited by guarantee
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
You are a senior member of the audit team at Grain Millers Ltd., a company whose business is milling maize, wheat and other products for local consumption. The annual turnover for the year ended 30 September 2002 amounted to Sh. 1.5 million and most of its sales were on credit.The audit team leader has assigned you the audit of the provision for bad and doubtful debts which has been set at Sh. 4.75 million; out of which Kshs 3.25 million relates to the provision against specific bad and doubtful debts and the balance of Sh. 1.5 million is a general provision determined as a percentage of overdue debtors with a higher percentage being applied against the longest overdue accounts. Required: What is meant by the following terms as used in auditing: Cut off procedure? and Audit in depth?
You have been the auditor of Crossborder Trading Company Ltd. for a number of years. The company‘s head office is in Nairobi, Kenya and if has considerable overseas operations. At each accounting year end, there are large debts due from overseas agents of the company (Sh. 270 million out of total debts of Sh. 680 million as at 31 December 2000). In the past, these debts have always been settled after year end but you have insisted that the debts be the subject of a specific representation made by the company‘s director. Required: Draft a paragraph for a letter of representation appropriate to the circumstances described above
You have been the auditor of Crossborder Trading Company Ltd. for a number of years. The company‘s head office is in Nairobi, Kenya and if has considerable overseas operations. At each accounting year end, there are large debts due from overseas agents of the company (Sh. 270 million out of total debts of Sh. 680 million as at 31 December 2000). In the past, these debts have always been settled after year end but you have insisted that the debts be the subject of a specific representation made by the company‘s director. Required: Outline the purpose of a letter of representation from management to the auditor.
You have been the auditor of Crossborder Trading Company Ltd. for a number of years. The company‘s head office is in Nairobi, Kenya and if has considerable overseas operations. At each accounting year end, there are large debts due from overseas agents of the company (Sh. 270 million out of total debts of Sh. 680 million as at 31 December 2000). In the past, these debts have always been settled after year end but you have insisted that the debts be the subject of a specific representation made by the company‘s director. Required: State what action you would take if the directors refused to provide you with a letter of representation
You have been the auditor of Crossborder Trading Company Ltd. for a number of years. The company‘s head office is in Nairobi, Kenya and if has considerable overseas operations. At each accounting year end, there are large debts due from overseas agents of the company (Sh. 270 million out of total debts of Sh. 680 million as at 31 December 2000). In the past, these debts have always been settled after year end but you have insisted that the debts be the subject of a specific representation made by the company‘s director. Required: State what action you would take if the directors refused to provide you with a letter of representation
You have been the auditor of Crossborder Trading Company Ltd. for a number of years. The company‘s head office is in Nairobi, Kenya and if has considerable overseas operations. At each accounting year end, there are large debts due from overseas agents of the company (Sh. 270 million out of total debts of Sh. 680 million as at 31 December 2000). In the past, these debts have always been settled after year end but you have insisted that the debts be the subject of a specific representation made by the company‘s director. Required:Outline the audit work which should be performed when seeking evidence to substantiate the management‘s representations as drafted and indicated the value of the directors‘representations in these circumstances. You should present your answer under the following headings: Existence and title., Valuation and disclosure

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State the evidence, which you, as the auditor, would like to find in place and pay attention to when vouching the following payments made by RR Paper Mills Ltd., during the financial year ended 31 October 2002. The last call on 5, 000 ordinary shares at Sh, 15 per share

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