In addition to the key objective of reporting as to whether financial statements show a true and fair view, the audit also adds value to the organization.... (Mwindi 2005).
Required:
(1)

Illustrate any FIVE key responsibilities of the directors of a company in relation to the Accounting functions.
(P) Marks). Explain THREE main distinctions between auditing and Accounting. (3 Marks). Describe any THREE benefits of an audit to a public limited company. (3 Marks).

(b) You are approached by Managing Director of Usema Ukweli Enterprises in Nakuru City. An entity that has hired you as an auditor. He feels that there is no need for your firm to carry out an interim audit during the audit of the year ended 31 December 2021. He alludes that an interim audit is only a way of increasing your audit fees and there is no value added to his company.

Required:

a State and explain why an interim audit is necessary and how it can be of benefit to the client.
the
(5 Marks).

b. What work is normally carried out at the Final Audit could be carried out at interim stage of auditing? (ii)
(3 Marks).

(c) Appointment of auditors to companies is guided by the provisions of the Company Act. Discuss how the auditor of a public company may be appointed. (4
Marks)

(d) Explain any FOUR reasons why an auditor might be asked to step down.
(2 Marks)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a 1 Key responsibilities of the directors of a company in relation to the Accounting functions include Ensuring that proper accounting syst... View the full answer