KOITALEEL SAMOEI UNIVERSITY COLLEGE

(A Constituent College of University of Nairobi)

SCHOOL OF BUSINESS
DAC 204 ASSIGNMENT
ASSIGNMENT ONE (20 marks)
IN GROUPS OF 2,DO A COMPREHENSIVE RESEARCH AND PRESENT FINDINGS
TO CLASS (20 minutes presentations per group)

PRESENTATIONS BEGIN ON 18TH APRIL 2023

N/B :E-mail your presentation to all class members and I atleast a day before
the presentation.
GROUP 1- OTIENO SELEMIAH NYABOGI &GONDA KENNEDY JANA
GROUP 2- MAKENA ANN KINYUA &MANGABO ELIJAH OSORO
GROUP 3- MURIMI CHALINE NYAGUTHII&ABWAO ROSELINE ACHIENG
GROUP 4- NZIOKA KENEDY WAITA&SEREMPOI SILAS TOROTICH
GROUP 5-AKOLA NICKSON WANJALA &CHEPKORIR MERCY
GROUP 6- KIPROTICH GIDEON&KIPLANGAT VICTOR RONO
GROUP 7- KIPKIRUI ATHANASIUS&KIBET IAN
GROUP 8-MARITIM EZRA&ROP EMMANUEL KIPKOSGEI
GROUP 9- BETT EDEMON KIPROTICH&SIFUNA SHEILA NABWILE
GROUP 10-CHEMWETICH ESTHER CHESANG&MUTIBISI ONESMUS WESONGA
GROUP 11- OMONDI COLLINS AUKO& JEROTICH MERYLINE
GROUP 12-ANDIWA SHARON&RUTTO EZRA KEMBOI

GROUP 1 : BUSINESS ETHICS

The managing director of Eldoville Ltd ,a beer manufacturing company in Eldoret, believes
that employees of the organization don’t need a written code of ethics. He believes a handshake
and a person’s word is enough.
Discuss whether this approach to ethical behavior is practical.

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GROUP 2: PROFESSIONAL VALUES AND ETHICAL PRINCIPLES

The financial controller and assistant accountant are now discussing the auditors of State Power.
The assistant accountant describes some of the aspects of the auditors that she is not impressed
by and asks the financial controller for his opinion. She explains that she took some papers to the
auditor’s offices yesterday and that the firm had a flashing neon sign with the firm’s name in
three colors which was repeated on the letterheads. They also operated a real estate firm from the
same office as well as a financial advisory service and the office door showed no mention of
registration for these services.

The financial controller replied that the assistant accountants concern were legitimate. In
addition ,the Assurance team senior is the nephew of the chairman of State Power and he also
shares his assistant accountants concerns.

What breaches of the code of ethics have probably been made by the audit firm? What should the
financial controller do in this situation?

GROUP 3 : CORPORATE SOCIAL RESPONSIBILITY

. In a corporate governance and ethics forum in Mombasa, one of the facilitators noted that
“economic, legal ,ethical and philanthropic responsibilities are the four kinds of responsibilities
that constitute complete corporate social responsibility”

With reference to the above statement, discuss each of the four kinds of responsibilities that
constitute complete social responsibility and argue the case against business engaging in
corporate social responsibility activities.

GROUP 4 : ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

a) Companies undertaking CSR must take ethical issues into consideration .

State 10 ethical issues that should be considered while undertaking CSR.

b) Analyse the features of a good ethics and compliance programme implemented by

companies in Kenya.

c) Why are companies increasingly registering foundations for CSR activities?

GROUP 5: INTERNAL CONTROLS

The CEO of Kisumu Beach Hotels ,Bob Odhiambo was discussing legal obligations with the
finance director. “How do you know that our responsibilities for the internal control system are
met?he asked. “What is our internal control to ensure that we aren’t in trouble?”
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“That’s easy,Bob” .The finance director replied.The reports we get each month confirm that the
internal control system is operating correctly.”

Bob was surprised.”what do you mean?” which reports are you talking about?”

Question

What are the reports that the Finance director is referring to and why are they important to
Kisumu beach Hotels.

GROUP 6: INTERNAL CONTROLS

The existence of fraud does not mean that the internal control system has failed the management
and the company. Fraud will occur no matter how large and strong the internal control system is.

Discuss how the following forms of fraud can be prevented or detected.

i)The destination of a cheque is changed after approval and signature and payee is altered and
deliberately mispelt.

ii)Casual cash transactions such as deposits ,sales of scrap or damaged stock ,unclaimed wages
or any other receipt,are not accounted for.

iii)A fictitious account is opened and some legitimate invoices for the customer are charged to
it.When the cash is received ,the funds are diverted for collection to another account or withheld
in cash.The balance of the fictitious account is written off by journal entry.

iv)An account is written off as a bad debt and the cash receipts are misappropriated when they
are received.

GROUP 7: INTERNAL CONTROL & CORPORATE GOVERNANCE

The CEO and finance director of Kisumu Fisheries Ltd are reviewing their changing business
operations. The CEO suggests that the introduction of the new corporate governance will cause
adjustments to the current internal control systems, but the Finance Director does not agree. The
CEO also suggests that reporting requirements will need to alter with the new organizational
structure. The Finance Director assures them that the present system will be adequate for their
current needs.

Discuss the considerations that need to be made for any changes to the internal control system
due to the introduction of corporate governance.
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GROUP 8 : INTERNAL CONTROLS

“The one thing I do know about internal control systems is that segregations of incompatible
functions and an effective reporting systems are so important”

These were the opening words of the guest speaker at a seminar on internal control. During her
speech she listed and reviewed the main reasons why reporting is important in the internal
control system.

How important is both segregation of duties and an effective reporting system for an internal
control system. Describe the issues involved.

GROUP 9:INTERNAL CONTROLS

Describe how internal controls can be implemented in each of the following accounting
subsections :
a) Sales ,order entry ,credit control and accounts receivable
b) Purchases, receiving and accounts payable
c) Cash receipts and liquid assets
d) Cash payments and liquid assets
e) Human resources and payroll
f) Inventory and stock control
g) Non-current assets and business financing

GROUP 10: CORPORATE GOVERNANCE

You are the company secretary of Information Technology Company. The chairman of the
board has requested you to prepare a short report identifying the key stakeholders on corporate
governance and the role played by each stakeholder.

Prepare a memo to the chairman responding to the request.

GROUP 11: CORPORATE GOVERNANCE

In recent years banks and financial institutions have continued to maximize profits. The economy
has not grown at the same pace.

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In relation to good corporate governance explain how the boards of banks and financial
institutions achieve a balance between the interests of depositors, shareholders and other arms of
the public.

GROUP 12: CORPORATE GOVERNANCE

a)Governments in many developing countries have embraced good corporate governance in

conducting their affairs.

Discuss areas where measures have been taken to embrace good governance in public service of
Kenya

GROUP 13: CORPORATE GOVERNANCE

In the context of good corporate governance ,discuss the following policies adopted by a
company of your choice.

i)Whistle blowing policy

ii)Chinese wall policy

GROUP 14: CORPORATE GOVERNANCE

a) Justify the importance of an independent and balanced board of directors.

b) Discuss the roles of board of directors of a company in relation to enterprise risk management

GROUP 15: CORPORATE GOVERNANCE

a) Discuss the roles of board chairman in corporate governance.

b) Highlight the items that should be included in the report on corporate governance, in the
annual report of companies.

GROUP 16: CORPORATE GOVERNANCE

a) In recent times, there has been talk about non adherence to ethical standards on the part
of accountants and auditors .Suggest ways in which non disclosure of accurate financial
statements might negatively impact the company.

b) Justify the need for board committees

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 GROUP 17: CORPORATE GOVERNANCE

Enumerate the SEVEN Caux Round Table (CRT) principles and explain their
relevance in strengthening governance and ethics for companies in Kenya..

GROUP 18:CORPORATE GOVERNANCE

a)Multi-jurisdictional attempt to regulate corporate governance is futile because of differences

in national cultures. Discuss

b) Discuss the characteristics of an effective measurement tool for enterprise risk management.

GROUP 19:CORPORATE GOVERNANCE AND INTERNAL CONTROLS

The Chairman of Kisumu Fisheries Ltd was discussing the corporate governance issues with a
director, Tony Onyango.
“Tony, we need to have a professional and effective management environment. The
importance of it can’t be ignored and it is necessary for all of the directors to keep the upper
levels of management accountable to ensure we have one.

Required

(i) Describe the characteristics of the management control environment.

(ii) How can the Directors be sure that it is effective?

END