Check the attachments and answer all questions. Thank you.

1.

What are some of the limitations using Gross National Product as a measure of

economic performance?

2.

. A hypothetical closed economy has a national income model of the form y = C + I

+ G where C = 30 + 0.8Y and I and G and private investment and government

expenditure are exogenously determined t 50 and 80 units respectively. Compute

the national equilibrium level of income for this economy using aggregate income

equals aggregate expenditure and withdrawals and equal injection methods.

3.

You are auditing the financial statements of Twendelee Trading Co Lid., a listed company, for the year ended 3 I October 2002. The audit assignment partner has asked you to consider the auditors responsibilities for identifying subsequent events. Also, he has asked you to describe the audit procedures, which examine subsequent events. has suggested that an example of one point in answer to part (b) below would be: "Checking accounts receivable cash, received after the year-end to determine the realizability of accounts receivable balances at the year-end and highlight doubtful balances on the accounts receivable ledger". The detailed audit work was completed on the morning of Friday 6 December 2002. It is proposed that: I. The audit report is signed on Friday 20 December. 2. The "financial statements are sent to shareholders on Monday 6 January 2003. 3. The company's annual general meeting will be held on Wednesday 29 January 2003, At this meeting the shareholders will vote to approve the financial statements. You are required to: (a) Consider the auditor's responsibilities for detecting material subsequent events in the periods: 1 31 October to 6 December 2002. ii) 6 December to 20 -December 2002 iii) 20 December 2002 to 6 January 2003 iv) 6 January 2003 to 29 January 2003, v) After 29 January 2003. (b) List and briefly explain audit procedures, which involve examination of subsequent events. (c) Describe the work you will carry out in period (a) (ii) above