QUESTION ONE

Kasuku Company Limited was established in January 2003, to sell and distribute household products. The directors are unaware at to their responsibilities and the nature of their relationship with the external auditors.

Required

1. Explain to the directors of Kasuku Company why there is need for an external audit.
2. Explain the responsibilities of the directors in relation to the accounting function of the company.

QUESTION TWO

What is a value for money audit? Why is it essential?