Please answer the following

SECTION I QUESTION ONE (a) In a recent research survey by Intelligence Consultants on the use of the services of auditing firms by various Non Governmental Organisations (NGOs) in Kenya, the findings were as follows: Out of those NGOs which used P & M Auditors in 2001 financial year, 10% switched to D & T Auditors. 10% switched to Best Auditors and 10% switched to Excel Auditors. Out of those which used D & T Auditors in the same financial year, 20% switched to Best Auditors and 10% to Excel Auditors. Out of those which were using Best Auditors only 10% switched to Excel Auditors. Out of those which used Excel Auditors, 20% switched to P UM Auditors, 10% to D & T Auditors and 10% to Best Auditors in 2002 financial year. It was further found that the market share of P & M Auditors, D & T Auditors, Best Auditors and Excel Auditors was 20%, 30%, 40% and 10% respectively. Required: (1) Determine which auditing firm(s) are likely to audit more and less NGOs in the 2003 financial year. (10 marks) (11) Explain some of the possible actions for the audit firms, which might experience reduction in market share. (3 marks) (b) Consider an economic system which has n different sectors, each of which produces one commodity. The product of one sector is being consumed by other sectors and also there is the final demand for each product produced. Required: (1) Represent the above information in a tabular form. (3 marks) (1i) Derive a relationship (equation) which can be used to determine how much each industry should produce in order to meet the final demand. (4 marks) (Total: 20 marks)