QUESTION $1$

$1\mathrm{.}1.$ Apart from the requirement by law for a company to have an audit, identify the ways in which entities $(25$ Marks$)$ benefits from an investment in an audit?

$(7$ marks$)$

$1\mathrm{.}2.$ Describe the objectives of undertaking an audit?

$1\mathrm{.}3.$ Briefly describe the five $(5)$ types of auditors?

$(5$ marks$)$

$1\mathrm{.}4.$ The term audit as defined in the Audit Profession Act $2005$ means?

$(10$ marks$)$

QUESTION $2$

$(3$ marks$)$

$(25$ Marks$)$

$2\mathrm{.}1.$ Define the term internal audit and explain its relevance to an organisation?

$(8$ marks$)$

$2\mathrm{.}2.$ Briefly list the inherent limitations of internal controls?

$(6$ marks$)$

$2\mathrm{.}3.$ Discuss the advantages$/$benefits of good internal controls in an organisation?

$(11$ marks$)$

QUESTION $3$

$(20$ Marks$)$

$3\mathrm{.}1.$ Briefly describe the activities undertaken by the auditor during the preliminary stage of the audit process?

$(5$ marks$)$

$3\mathrm{.}2.$ Briefly describe the activities undertaken by the auditor during the planning stage of the audit process?

$(5$ marks$)$

$3\mathrm{.}3.$ What are the benefits of proper planning in the audit of annual financial statements?

$(5$ marks$)$

$3\mathrm{.}4.$ Describe the reasons that an audit firm may not wish to enter into a relationship with a new client?

$(5$ marks$)$

QUESTION $4$

$(8$ Marks$)$

$4\mathrm{.}1$ What is the difference between sampling and non$-$sampling risk?

$(4$ marks$)$

$4\mathrm{.}2$ Briefly discuss the disadvantages of using statistical sampling in auditing?

$(4$ marks$)$

QUESTION $5$

$(22$ Marks$)$

$5\mathrm{.}1$ Information technology environments may be classified as$?$

$(4$ marks$)$

$5\mathrm{.}2.$ An Information Technology $($IT$)$ environment is expected to influence the nature, timing and scope of

$(4$ marks$)$

audit procedures in areas which include?

$5\mathrm{.}3.$ Briefly list and explain the five $(5)$ major types of information systems?

$(10$ marks$)$

$5\mathrm{.}4.$ What are some of the technologies which are used to facilitate the sharing of information within and

$(4$ marks$)$

among organisations?

END OF PAPER