Your are currently engaged in planning the audit of the payroll system of Ujenzi Ltd a manufacturing company, for the year ending 30 June 2005, Ujenzi Ltd‘s payroll system is fully computerized. Required: Explain three controls which should be instituted by Ujenzi Ltd to ensure that only authorized persons are allowed access to information on personal files and to input updates for the calculation of wages

Issuing of passwords to the staff that process personal files will prevent other parties not concerned with the process from gaining access to the files.

These passwords should be changed frequently since it is possible for others to crack the existing ones with time.
Any update on the wage system e.g. to incorporate overtime rate should be authorized by a higher authority.

Constant review of the personal files should be carried out to verify that only authorized alterations have been effected. This could be checked against the master file.

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Your are currently engaged in planning the audit of the payroll system of Ujenzi Ltd a manufacturing company, for the year ending 30 June 2005, Ujenzi Ltd‘s payroll system is fully computerized. Required: Explain four ways in, which the use of a computerized payroll system by Ujenzi Ltd, would affect your work as the auditor
You have recently been appointed external auditor of ABC Ltd. What typical planning procedures would you undertake when planning the audit of ABC Ltd.?
You have recently been appointed as the external auditor of XYZ Ltd. Explain the stages you would in the conduct of your audit
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?
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;What details should each client schedule used as a working paper indicate?
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: What details should each working paper which is prepared by an auditor indicate?
State six examples of controls to prevent unauthorised changes to data files that you would expect to find in a new computer based accounting system
Your firm audits Clean Paints Ltd. and you are planning the audit of stock and work in progress for the year ended 31 December 2000. Clean Paints Ltd. determines the value of stock in its financial statements by the year -end stocktake. There is no perpetual Stock Inventory System though stock is counted quarterly for the purposes of management accounting.Stock and work in progress is held at the warehouse which is next to the company‘s factory.Required:State the areas that you will expect the client‘s stocktaking instructions to cover
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: With appropriate illustrations, differentiate the use and contents of a permanent file from a current file and write brief notes on the evidence that is provided by working papers
. Your firm audits Clean Paints Ltd. and you are planning the audit of stock and work in progress for the year ended 31 December 2000. Clean Paints Ltd. determines the value of stock in its financial statements by the year -end stocktake. There is no perpetual Stock Inventory System though stock is counted quarterly for the purposes of management accounting.Stock and work in progress is held at the warehouse which is next to the company‘s factory.Describe the work you will perform and the matters you will record at the stocktake attendance
K. Kemei want to buy a new car for G. N Motors Ltd. He selected a new and nice looking car and was informed by G. N. Motors Ltd that the car was new and free from any defects K. Kemei signed a sale agreement with the motor company which partly read “…..no condition or warranty that the vehicle is road worthy or as to its age orfitness for any purpose is given or implied by the seller. Goods once sold cannot be returne.”When the car was delivered to K. Kemei after paying for it, he discovered to his surprise that it was a second hand car of the same make as the car he had selected but with several major mechanical defects.G. N Motors Ltd. insists that he sale was validly concluded and that they cannot be liable to K. Kemei under any circumstances. Advise Kemei
Inventive Mind Co. Ltd. has developed a new drug to be used in the treatment of common cold. The directors wish to register the trademark for their new product. Outline the items which must be contained in the application form for registration in order for the trademark to be registered
You are the auditors of Mount Elgon Ltd. You are carrying out a review of the accounts for the financial year ended 31 October 2004 with a view of signing the audit report. During this review, you have noted the following matters: 1. No depreciation has been provided on plant and machinery for the financial year ended 31 October 2004. This is because the directors of Mount Elgon Ltd. feel that the value of the plant and machinery is in excess of the amount at which it is stated in the financial statements. 2. Some sections of the company‘s stocktaking records were accidentally destroyed. Consequently, the value attributed to stocks as at 31 October 2004 is only an estimation by the directors of Mount Elgon Ltd. Required: What would be your audit opinion with regard to the matter referred to in above and draft an audit report expressing your specific reservations with regard to (2) above
In the course of the audit of ABC Stationers Ltd. for the year ended 30 June 2001, you have noted and recorded in the audit working papers, the following evidential matters: 1. Flowcharts of the company‘s payroll prepared by your audit assistant backed up by tests of controls. 2. An oral statement by the production director that the expected working life of plant acquired during the year is ten years. 3. A letter to the managing director from the company‘s bank manager indicating that the bank intends to extend overdraft facilities for a period of one year. 4. A list of items of inventory counted by a member of your audit team during observation of the company‘s annual stock count. 5. A letter from a customer to your firm in reply to a confirmation request indicating agreement with the balance recorded in the books of ABC Stationers Ltd. Required: With respect to each matter listed above, explain its relevance to the overall audit objective of forming an opinion and reporting on the financial statements and Explain your judgment on the reliability of the audit evidence obtained in five ways listed above

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