A. The internal audit function has been evolving with the increasing size and complexity of business that many large companies have experienced over decades. What are the functions performed by internal auditors or internal audit committee?

(7marks)

B. Explain and illustrate with suitable figures the concept of financial statements articulation?

(7marks)

C. Mary and Johns run a business together and are organized as a partnership to which each has contributed $ 140,000 in capital. During their accounting years they made a profit of $240,000. Drawings amounted to $14,000 for Mary and $18,000 for Johns.

Their partnership agreement stipulates the following:

A profit sharing ratio of 2:3

Eight percent interest on capital

Ten percent interest charged on drawings

Mary receives a salary of $40,000 per annum

Required: Prepare an appropriation statement for the partnership.