QUESTION ONE (a) SIX Inherent Limitations of an Audit of Historical Financial Statements (6 marks) Use of Sampling: Audits rely on sampling rather than examining every transaction, which may miss material misstatements. Subjectivity in Estimates: Financial statements include estimates (e.g., Read More …
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KASNEB CPA Past Papers With answers
CPA Past Papers With answers For revisions CPA FOUNDATION LEVEL PAST PAPERS WITH ANSWERS Financial Accounting Past papers with answers Communication Skills Past papers with answers Introduction to Law and Governance Past papers with answers Economics Past papers with answers Read More …
Highlight the essentials of a contract for the sale of goods
Highlight the essentials of a contract for the sale of goods ANSWER Parties are invariably the buyer and the seller. The seller sells or agrees to sell while the buyer buys or agrees to buy goods. Transfer or passing of Read More …
Highlight the circumstances under which a partnership would be dissolved on the application of a partner
Highlight the circumstances under which a partnership would be dissolved on the application of a partner ANSWER A partner has become a lunatic or is permanently of unsound mind. A partner is permanently incapable of discharging his obligations as a Read More …
Explain the advantages of a private company over a public company
Explain the advantages of a private company over a public company ANSWER Subscribers are in a position to control membership. Transfer of shares is restricted, members determine who may join. It is the best vehicle for family business. Subject to Read More …
State and explain the contents of the memorandum of association
State and explain the contents of the memorandum of association ANSWER Name clause: describes the name of the company with “Limited” or “Ltd” as the last word thereof for companies Limited by shares or guarantee. Registered office clause: states that Read More …
Describe the ways in which a corporation may be established
Describe the ways in which a corporation may be established ANSWER By registration: these are companies incorporated pursuant to the provisions of the Companies Act. Their creation is evidenced by a certificate of incorporation. The company may be public or Read More …
Judicial Service Commission
JUDICIAL SERVICE COMMISSION Establishment: It is established by Article 171 of the Constitution. Composition/Membership Under Article 171 (2) or the Act, the Judicial Service Commission shall consist of: The Chief Justice, who shall be the chairperson of the Commission; One Read More …
Summarise the advantages of arbitration as a form of settling disputes
Summarise the advantages of arbitration as a form of settling disputes ANSWER Informality: free from technicalities which characterize ordinary courts of law. Speed: it is a faster method of dispute resolution. Cheap: there is a saving on cost. Less acrimonious: Read More …
Define the term “delegated legislation” and discuss its advantages and disadvantages
Define the term “delegated legislation” and discuss its advantages and disadvantages ANSWER This is indirect, subordinate or subsidiary legislation. It is law made by parliament indirectly. These are by-laws, rules, orders, regulations statutes or proclamations made by subordinate competent bodies Read More …