CPA POST ADVANCED LEVEL

BUSINESS DATA ANALYTICS (PRACTICAL PAPER)

FRIDAY: 23 August 2024. Morning Paper. Time allowed: 3 hours.

Answer ALL questions in SECTION I and SECTION II and any one (1) question in SECTION III. SECTION I has
twenty (20) Multiple Choice Questions each carrying one (1) mark. SECTION II has three (3) practical questions
each carrying twenty (20) marks. SECTION III has two (2) practical questions each carrying twenty (20) marks.
Answer any one (1) question out of the two (2) questions in section III based on your specialisation.

Under SECTION II and SECTION III, you are required to create Ms Excel Worksheets and input your workings
and solutions. You may use the Excel template within the question.

SECTION I (20 MARKS)

Answer ALL questions in this section.

QUESTION ONE
Which one of the following is the BEST reason why an organisation may avoid cloud computing as a means of data
management?
A. Data costs
B. Data scalability
C. Data integrity
D. Data safety

QUESTION TWO
The following are the main examples of data visualisation:
(i) Comparison
(ii) Composition
(iii) Relationship
(iv) Distribution

Which one of the following summarises the order of the examples from simple to complex?
A. Distribution, comparison, composition, relationship
B. Distribution, composition, comparison, relationship
C. Comparison, composition, distribution, relationship
D. Relationship, composition, distribution, comparison

QUESTION THREE
The following activities apply to data visualisation:
(i) The format
(ii) The content
(iii) The structure
(iv) The purpose

CA35P Page 1
Out of 9
Which one of the following is the correct order of activities?
A. (iii), (iv), (ii) and (i)
B. (iv), (iii), (i) and (ii)
C. (iii), (ii), (iv) and (i)
D. (iv), (ii), (iii) and (i)

QUESTION FOUR
A method of storing data within a system that facilitates collocation of data in various schemata and structural forms is
known as __________________.
A. data visualisation
B. data lake
C. big data management
D. deep analytics

QUESTION FIVE
The Kenya Data Protection Act requires that a Data Protection Impact Assessment (DPIA) be carried out where a data
processing activity creates high risk to the rights and freedoms of a data subject. Which one of the following is an example
of high-risk data activity?
A. Customer profiling
B. Customer scoring
C. Customer inquiry
D. Customer feedback

QUESTION SIX
The following statements are on data security and data privacy:
(i) Data security is the process of protecting corporate data and preventing data loss through unauthorised access.
(ii) Data privacy aims to ensure that data is not shared within and outside the organisation.

Which one of the following statements is TRUE?

A. Only statement (i) is correct
B. Only statement (ii) is correct
C. Both statements are correct
D. None of the statements is correct

QUESTION SEVEN
Even when intentions are good, the outcome of data analysis can cause inadvertent harm to individuals or groups of people.
In data ethics, this concept is referred to as ____________________.
A. diverse impact
B. disparate impact
C. dissimilar impact
D. contrasting impact

QUESTION EIGHT
According to cross-industry standard process for data mining, data modelling involves:
A. Obtaining data and information from different sources, processing and storing for future reference
B. Fixing or removing incorrect, corrupted, incorrectly formatted data and information
C. Collecting data and information about business requirements from stakeholders and end users
D. Creating a visual representation of either a whole information system or parts of it to communicate connections
between data points and structures

QUESTION NINE
Which one of the following is NOT an array function in Ms Excel?
A. MMULT
B. TRANSPOSE
C. VLOOKUP
D. FREQUENCY

CA35P Page 2
Out of 9
QUESTION TEN
Miriam Wambui is the Chief Finance Officer of Zelta Company Limited. She is using data analytics in estimating future
risks that the company is facing and also cash budgeting with scenario analysis.
Which one of the following choices is CORRECT?
By carrying out risk management and cash budgeting, the category is classified as __________________.
A. predictive analytics for risk management and cash budgeting
B. predictive analytics for risk management and prescriptive analytics for cash budgeting
C. predictive analytics for cash budgeting and prescriptive analytics for risk management
D. prescriptive analytics for risk management and cash budgeting

QUESTION ELEVEN
Which one of the following is NOT a strategy the data analyst will use in handling missing data to enable data analysis?
A. Drop observations that have missing values
B. Estimate missing value using other observations
C. Assign an integer that will enable the values be processed as null values
D. Highlighting the observation with a tag such as not available

QUESTION TWELVE
Which one of the following keyboard shortcuts is used to display the “function Arguments” dialog box in Ms Excel?
A. Ctrl + F2
B. Ctrl + Shift + F3
C. Ctrl + Shift + A
D. Ctrl + Shift + #

QUESTION THIRTEEN
Which one of the following software is NOT used in data visualisation?
A. Python
B. Power BI
C. Tableau
D. Datawrapper

QUESTION FOURTEEN
Which one of the following is the BEST way to address the issue of transparency in data analytics?
A. Use proprietary algorithms for analysis
B. Only use numerical data for analysis
C. Document the analysis process and results
D. Use a single data source for analysis

QUESTION FIFTEEN
Which one of the following Ms Excel functions is used to count the number of cells in a range that meet a certain criteria?
A. COUNTA
B. COUNTIF
C. COUNT
D. COUNTBLANK

QUESTION SIXTEEN
Which one of the following software will a data analyst use to clean data?
A. Data stage
B. SQL
C. Tableu
D. Microstrategy

QUESTION SEVENTEEN
Which one of the following Ms Excel features would allow the creation of a drop-down list of values that users can select
from?
A. Trace precedents
B. Data validation
C. Data table
D. Text to column

CA35P Page 3
Out of 9
QUESTION EIGHTEEN
Which one of the following cloud computing platforms is known for its data management and analytics capabilities?
A. Azure
B. AWS
C. IBM Cloud
D. Google Cloud

QUESTION NINETEEN
In accounting, which type of analytics is used to detect anomalies or irregularities in financial transactions?
A. Predictive analytics
B. Descriptive analytics
C. Diagnostic analytics
D. Prescriptive analytics

QUESTION TWENTY
Which Ms Excel tool can Alex Mutua use to figure out the interest rate at which he would make monthly payments of
Sh.50,000 for the Sh.2 million bank loan he took for 5 years?
A. NPV
B. Vlookup
C. Scenario manager
D. Goal seek

CA35P Page 4
Out of 9
 SECTION II (60 MARKS)

Answer ALL questions in this section.

QUESTION 21:
Mzalendo Limited is a listed company. The following financial statements relate to the company for the year ended 31 December 2023:

Statement of Profit or Loss for year ended 31 December 2023:

Sh.''million" Sh.''million''
Sales 710
Cost of sales (230)
Gross profit 480
Interest income 6
486
Expenses:
Distribution costs 110
Administration expenses 130
Finance costs 14 (254)
Profit before tax 232
Income tax expense (64)
Profit after tax 168
Dividends paid (40)
Retained profit for the year 128

Statement of Financial Position as at 31 December:

2023 2022
Sh.''million'' Sh.''million'' Sh.''million'' Sh.''million''
Non-current assets:
Property, plant and equipment 544 392
Financial assets at fair value through other comprehensive income 190 0
Intangible assets 6 8
740 400
Current assets:
Inventories 280 330
Trade receivables 264 240
Interest receivable 2 4
Cash in hand 8 554 2 576
1,294 976

Equity:
Ordinary share capital (Sh.2 par value) 240 220
Share premium 88 70
Revaluation reserve 14 0
Retained profits 298 178
640 468
Non-current liabilities:
6% Loan stock 40 80
Obligations under finance lease 100 140.00 84 164

Current liabilities:
Bank overdraft 16 40
Trade payables 424 254
Interest payable 6 4
Obligations under finance lease 10 6
Current tax 58 514 40 344
Total Liabilities 654 508
1,294 976

Additional information:
1. During the year, the company issued 10 million (Sh.2 par value) ordinary shares at a price which was 100% above their par value, incurring issue costs of Sh.2 million.
2. During the year, some items of property, plant and equipment were bought under a finance lease amounting to Sh.56 million. Disposals of assets having a net book value of
Sh.38 million realised Sh.42 million. Depreciation charge was Sh.74 million.
3. Interest on finance leases of Sh.6 million was included in the interest payable charged to the statement of profit or loss.

Required:
Statement of cash flows for Mzalendo Ltd. for the year ended 31 December 2023 in accordance with IAS 7 (Cash Flow Statements). (20 marks)
(Total: 20 marks)

CA35P page 5
Out of 9
QUESTION 22:
Manoti Were has recently been thinking of buying his dream car, a few years after joining Rafiki Sacco. Having established a Mercedes E-Class vehicle would cost
between Sh.2.7 million to Sh.3 million, he approached the Sacco for a loan of Sh.2 million with the difference to come from the sale of his current car with a current
market re-sale value of Sh.1 million.
The Sacco confirmed that Manoti Were qualifies for the loan and were willing to advance him a new loan under the following terms and conditions:

Loan amount (Sh.) 2,000,000

Period of payment (Years) 5
Repayment frequency Monthly
Annual interest rate 11%
Monthly repayment (Sh.) 43,485

Additional information:
1. The loan is to be repayed on a monthly basis.
2. The first installment is due at the end of the first month after loan disbursment.

Manoti Were has approached you for advise as he does not understand how the repayment amounts and interest on loan are arrived at.

Required:
(a) Using an appropriate Ms Excel function, confirm to Manoti Were that indeed the monthly repayment amount of Sh.43,485 is actually correct. (2 marks)

(b) Prepare a monthly loan armotisation schedule for the above loan for Manoti Were to see how the loan clears by the end of 5 years. (12 marks)
(Have columns for period, monthly repayment, principle, interest and loan balance)

(c) As a customer centric Sacco, the Sacco members are allowed to vary the loan terms to their preferences as long as it is alligned to the loan terms.
Help Manoti Were to fill the table below with the correct repayment period and loan amount in columns C and D respectively that allows for him to make monthly
repayment amount of Sh.35,000 and not the proposed Sh.43,485.

Details Bank Proposal Charged Amount C D

Loan amount (Sh.) 2,000,000
Term (months) 60
Annual interest rate 11% 11%
Monthly payment

(6 marks)
(Total: 20 marks)

CA35P Page 6
Out of 9
QUESTION 23:
Folico Manufacturing Limited produces premium jewellery. The company prepares its budget for the year based on the estimated production and sales of its products.
The following budget was prepared for product "Malkia" for the current month based on the production of 1,250 units. However, due to unexpected demand, the company ended up
producing 1,500 units.

Below are the budgeted and actual figures:

Budgeted (for 1,250 units): Sh.''000''

Direct materials 27,000
Direct labour 25,000
Variable manufacturing overhead 12,500
Fixed manufacturing overhead 75,000
Variable sales and administration expenses 18,000
Fixed sales and administration expenses 65,000
Total manufacturing costs 222,500

Actual (for 1,500 units):

Direct materials 32,000
Direct labour 25,000
Variable manufacturing overhead 18,000
Fixed manufacturing overhead 75,000
Variable sales and administration expenses 20,000
Fixed sales and administration expenses 65,000
Total manufacturing costs 235,000

Additional Information:
1. The selling price for product "Malkia" is Sh. 230 per unit.
2. Where necessary, use the per-unit variable costs derived from the budgeted figures.
3. Folico Manufaturing Limited has a sales contract to deliver 850 units of product "Malkia" every month.
4. Folico Manufacturing Limited sales averages 80% of the units produced in any month. This percentage is inclusive of the sales contract units.
5. Corporation tax rate is 30% payable on realised profit.

Required:
(a) Prepare a flexible budget for 1,500 units. (4 marks)

(b) Determine the total flexible budgeted costs for 1,500 units. (2 marks)

(c) At 1,500 units, compare the flexible budgeted costs with the total actual costs. Using a logical function, identify the variances as either adverse or favourable. (6 marks)

(d) Prepare an income statement for manufacturing levels of 1,000, 2,000 and 2,500 units of product Malkia. (8 marks)
(Total: 20 marks)

CA35P Page 7
Out of 9
 SECTION III (20 MARKS)

Answer only ONE (1) question in this section.

QUESTION 24:
As an audit senior at Herufi Audit Firm, you have been made responsible for planning the audit of Lead Team Manufacturing Ltd. for the year ending
31 December 2023. Below is a summary of key information about LeadTeam Manufacturing Ltd.:

Sh."000"
Revenue 75,000
Net income 7,250
Total assets 85,000
Inventory 15,000
Accounts receivable 12,000

The accountant at LeadTeam has further provided with you the following list of account balances as at 31 December 2023:

Account Sh."000"
Accounts payable 4,500
Accounts receivable 27,650
Cash in hand 3,000
Inventory (1 January 2023) 18,100
Returns outward 1,500
Return inwards 3,250
Ordinary share capital (Sh.10 par value) 12,000
10% preference share capital (Sh.10 par value) 5,800
9% long-term debt 4,500
Sales 150,000
Purchases 51,500
Bank overdraft 3,000
Discounts received 522
Discounts allowed 300
Building (cost) 64,940
Heavy machinery (cost) 10,300
Accumulated depreciation (1 January 2023): Building 5,950
Accumulated depreciation (1 January 2023): Heavy Machinery 2,100
Audit fees 11,262
Administrative expenses 4,700
Advertisement expenses 1,320
Bad debts written off 150
Allowance for doubtful debts (1 January 2023) 300
Retained profit (1 January 2023) 6,300

Additional information:
1. As at 31 December 2023, accounts receivable balance included Sh.250,000 due from a customer who has been declared bankrupt while accounts
payable was found to have been overstated by Sh.150,000.
2. The allowance for doubtful debts is to be adjusted to 3% of the accounts receivable as at 31 December 2023.
3. As at 31 December 2023, there were prepayments of Sh.50,000 and Sh.75,000 towards administrative and advertisment expenses respectively.
For the same period, there was an accrued amount of Sh.120,000 towards audit fees.
4. The company paid the due interest on the long term debt on 7 January 2024.
5. Depreciation is provided as follows:
- Building - 5% per annum on cost
- Heavy Machinery - 10% per annum on reducing balance
6. The company Annual General Meeting resolved that:
- Preference dividend be paid.
- A dividend of 11% on ordinary shares be paid.
- Sh.3 million be transferred to general reserves.
7. The company maintains a gross profit margin of 25%.
8. Having been made aware of significant changes in the ERP System, the CFO position and business routes, you are concerned about the materiality
assesment of the audit.

Required:
(a) Determine the planning materiality for the audit based on the revenue net income and total assets. Justify your choice of the basis and the
percentage used. (6 marks)

(b) Prepare the original adjustments and adjusted trial balance with the Debit and Credit Columns each (6 Columns). (14 marks)
(Total: 20 marks)

CA35P Page 8
Out of 9
QUESTION 25:
Owing to public outcry on the implementation of various projects across the country, the National Treasury of your country has provided data relating to projects implementation
in the past 4 years. The data set comprises Project Focus Areas (Col A:B), Bank Data on Projects (Columns E:G), Projects; detailed Breakdown (Column J onwards).
An economic watchdog organisation has approached you to help analyse the data for purposes of making meaningful deliberations on the data provided. The data is in the next
Excel sheet labelled Question 25 data.

Note
The bank statement amounts column shows the disbursement to the project IDs.

Required:
(a) Using relevant formulas/functions:

(i) Fill the appropriate data to the blank columns (M,R,U,V and W). (5 marks)

(ii) Calculate:

I. The number of power connectivity projects implemented. (1 mark)

II. The total amount of money disbursed by the National Treasury. (1 mark)

III. The average budget of Social Services projects in Nandi County. (1 mark)

(b) Create pivot summaries of:

(i) The budget allocated per project. (2 marks)

(ii) The amounts disbursed per project focus item. (2 marks)

(iii) Project cost and administration cost trend (Showing Years and Months). (2 marks)

(c) With the summaries in (b) above, create appropriate visualisations with the below focus message:

(i) The budget allocated per project - Comparison. (2 marks)

(ii) The amounts disbursed per project focus item - Proportionality. (2 marks)

(iii) Project cost and administration cost trend (Showing Years and Months) - Trend. (2 marks)
(Total: 20 marks)

CA35P Page 9
Out of 9
 CPA POST ADVANCED LEVEL

BUSINESS DATA ANALYTICS (PRACTICAL PAPER)

FRIDAY: 26 April 2024. Morning Paper. Time allowed: 3 hours.

Answer ALL questions in SECTION I and SECTION II. SECTION I has twenty (20) Multiple Choice Questions each
carrying one (1) mark. SECTION II has three (3) practical questions each carrying twenty (20) marks. SECTION III
has two (2) practical questions each carrying twenty (20) marks. Answer any one (1) question out of the two (2)
questions in section III.

Under SECTION II and SECTION III, you are required to create Ms Excel Worksheets with the name of the entity in
each question and input your workings and solutions. You may use the Excel template within the question.

SECTION I (20 MARKS)

Answer ALL questions in this section.

QUESTION ONE
Emma Atieno would like to determine the number of times revenues have exceeded Sh.12 million over the past 15 years.
If the revenues are listed vertically in column A (From Cell A2 to Cell A16) of Excel, which of the following formulas will
provide the correct output?
A. COUNTIF(A2:A11,“=12”)
B. COUNTIF(A2:A11,“>12”)
C. COUNTIF(A2:J11, “>12”)
D. COUNTIF(“>12”, A2:A11)

ANSWER: B

QUESTION TWO
A data analyst would like to determine the total revenue generated by a business in the first quarter of the year provided in
Excel. Which of the following syntax in Excel will provide the correct output?
A. =SUM([sum_range] range, criteria)
B. = SUMIF(range, criteria, [sum_range])
C. =SUMIFS([sum_range] range, criteria)
D. = SUMIF(Criteria, range, [sum_range)

ANSWER: B

QUESTION THREE
Which one of the following data analytical tools will require the LEAST programming activity by a data analyst?
A. Tableau
B. Python
C. R
D. Power BI

ANSWER: A

CA35P Page 1
Out of 11
QUESTION FOUR
Which one of the following “Vs” of big data means the ability to generate more copies of data?
A. Value
B. Validity
C. Veracity
D. Vagueness

ANSWER: C

QUESTION FIVE
The following statements are made by two data analysts regarding the “Vs” of big data:
Jane: “Visibility: Often the only way customers interact with models”
John: “Visualisation: Data science provides images into complex big data problems”

Which one of the following statements is TRUE?

A. Only Jane is correct
B. Only John is correct
C. Both Jane and John are correct
D. Both Jane and John are not correct

ANSWER: D

QUESTION SIX
Which one of the following approaches to data collection is more EFFICIENT in data cleaning?
A. Online administered questionnaire
B. Email administered questionnaire
C. Physical administered questionnaire
D. Interview

ANSWER: A

QUESTION SEVEN
Which one of the following ethical issues in data analytics pertains to the potential misuse of personal data for profiling or
targeting?
A. Data security
B. Data cleaning
C. Data privacy
D. Data aggregation

ANSWER: C

QUESTION EIGHT
Which one of the following data visualisation charts presents comparison over many periods of time?
A. Scatter graph
B. Bubble chart
C. Circular area chart
D. Line chart

ANSWER: C

QUESTION NINE
The following activities are involved in the data understanding stage in the cross-industry standard process for data mining,
EXCEPT_______________________.
A. Checking for data completeness
B. Checking for errors in data
C. Checking for missing values in data
D. Identifying appropriate data modelling
ANSWER: D

CA35P Page 2
Out of 11
QUESTION TEN
You are given the following statements about data mining:
1. Descriptive data mining is a type of analysis that extracts data that may help determine an outcome.
2. Prescriptive data mining is a type of analysis that informs users of data of a given outcome.

Which one of the following statements is CORRECT?

A. Only Statement 1 is correct
B. Only statement 2 is correct
C. Both statements are correct
D. Both statements are not correct

ANSWER: D

QUESTION ELEVEN
The following statements are made about the qualities of good data visualisation:
1. The visualisation should accurately represent the data and its trends
2. The reader should know what action to take after viewing your visualisation
3. Your visualisation should be easy to understand
4. Your message should not take long to resonate

Which one of the following statements describes the quality of empowering?

A. Statement 1
B. Statement 2
C. Statement 3
D. Statement 4

ANSWER: B

QUESTION TWELVE
A scatter graph will likely be classified as a type of _________________ data visualisation.
A. Distribution
B. Relationship
C. Comparison
D. Composition

ANSWER: B

QUESTION THIRTEEN
Which one of the following statements is the CORRECT definition of “data transformation”?
A. The process that removes data that does not belong in a dataset
B. The process of checking the integrity, accuracy and structure of data
C. The process of converting data from one format or structure to another
D. The process of creating a visual representation of data elements

ANSWER: C

QUESTION FOURTEEN
The following are various approaches to data risk management:
1. Data risk sharing
2. Data risk avoidance
3. Data risk transfer
4. Data risk acceptance
5. Data risk reduction

Which one of the following answers provides the order of the MOST to the LEAST effective data risk management
strategy?
A. 1, 2, 3, 4, 5
B. 4, 3, 1, 2, 5
C. 2, 1, 3, 5 ,4
D. 2, 3, 1, 5, 4

ANSWER: D
CA35P Page 3
Out of 11
QUESTION FIFTEEN
The following are examples of data protection principles:
1. Only collect what is sufficient for your specified purpose
2. Process data bearing in mind the safety of individuals
3. Explain why you are collecting data

Which statement among the three is the principle of retention?

A. Statement 1
B. Statement 2
C. Statement 3
D. None of the statements

ANSWER: D

QUESTION SIXTEEN
Limo Limited obtains data from clients to provide business consulting services. Recently, a client provided data for analysis,
but a dispute arose and the process to provide consultancy to the client did not proceed. The client has requested Limo
Limited to delete all the data and confirm that this is done. Limo Limited should__________________________.
A. Delete the data
B. Keep the data as per the requirements of the data protection laws
C. Provide the data to a legal custodian for safe custody
D. Seek legal advice before deleting the data

ANSWER: A

QUESTION SEVENTEEN
When analysing corporate financial ratios in Excel, which function will return the highest or lowest value in a dataset?
A. MAX() and MIN()
B. LARGE() and SMALL()
C. TOP() and BOTTOM()
D. HIGH() and LOW()

ANSWER: B

QUESTION EIGHTEEN
Based on the principles in the Unified Ethical Frame for Big Data Analytics (Abrahams, 2015), the attribute of data analysis
being transparent and inclusive is provided by which of the following?
A. Beneficial
B. Fairness
C. Progressive
D. Respectful

ANSWER: D

QUESTION NINETEEN
What is the Excel function used to calculate the covariance between two data sets stored in cells B1:B10 and C1:C10?
A. =SD(B1:B10, C1:C10)
B. =VAR(B1:B10, C1:C10)
C. =COVAR(B1:B10, C1:C10)
D. =CORREL(B1:B10, C1:C10)

ANSWER: C

QUESTION TWENTY
In the context of data analytics, what does skepticism primarily refer to?
A. A bias in favour of accepting data findings at face value
B. The need to question and critically evaluate data sources and results
C. The over-reliance on machine learning algorithms
D. A positive attitude toward data-driven decision-making

ANSWER: B

CA35P Page 4
Out of 11
 SECTION II (60 MARKS)

Answer ALL questions in this section.

QUESTION 21:
Applecom Ltd. is a listed company operating in the telecommunications sector. The following data relates to the company for the past five years:

Statement of Profit or Loss for the year ended 31 March:

2019 2020 2021 2022 2023
Sh."million" Sh."million" Sh."million" Sh."million" Sh."million"
Total Revenue 250,283 262,556 264,027 298,078 310,905
Other Incomes 10 - - - -
Direct Costs (72,399) (75,285) (80,853) (91,468) (92,232)
Other Expenses (53,590) (49,229) (49,045) (57,548) (78,810)
EBITDA (Earnings Before Interest, Tax, Depreciation and Armotisation) 124,304 138,042 134,129 149,062 139,863
Depreciation and Amortisation (35,332) (36,548) (37,964) (39,933) (54,866)
88,972 101,494 96,165 109,129 84,997
Share of Profit in associate and Joint Venture 5 3,357 (507) (476) (38)
Finance income 2,760 3,519 2,198 2,413 14,548
EBIT (Earnings Before Interest and Tax) 91,737 108,370 97,856 111,066 99,507
Finance costs (520) (2,597) (4,221) (8,853) (11,162)
Profit before Tax 91,218 105,773 93,636 102,213 88,345
Income Tax Expense (28,727) (32,115) (24,959) (34,717) (35,862)
Profit After Tax 62,491 73,658 68,676 67,496 52,482

Statement of Financial Position as at 31 March:

2019 2020 2021 2022 2023
Assets: Sh."million" Sh."million" Sh."million" Sh."million" Sh."million"
Non-current assets:
Property, plant and Equipment ######### 129,337.20 133,833.70 148,993.00 221,987.60
Intangible assets 7,385.40 6,026.20 8,475.50 93,647.20 150,198.80
Right-of-Use Assets 3,609.90 18,495.00 17,608.40 20,866.00 39,168.50
Investment Property 845.00 845.00 845.00 845.00 935.00
Investment in Associate Company 150.30 4,965.10 4,458.20 3,982.10 3,943.90
Restricted Cash 2,741.00 2,747.80 2,540.70 2,167.80 1,759.60
Contract Assets 964.50 881.70 1,491.20 1,138.70 3,441.10
Deferred Tax asset 1,602.90 1,104.70 5,467.20 9,908.80 15,337.00
######### 164,402.70 174,719.90 281,548.60 436,771.50
Current assets:
Inventories 1,774.60 1,859.40 2,487.00 4,306.80 3,655.60
Receivables and Prepayments 18,126.30 17,190.30 23,635.70 27,204.20 40,791.50
Contract Assets 1,984.60 2,563.80 3,043.40 2,951.50 4,395.00
Tax recoverable - 260.40 7.20 7.90 851.60
Financial Assets 8,043.00 188.60 28.60
Cash and cash equivalents 20,030.10 26,759.70 26,736.10 30,779.60 22,713.20
49,958.60 48,822.20 55,909.40 65,250.00 72,435.50
Total Assets ######### 213,224.90 230,629.30 346,798.60 509,207.00

Capital:
Capital and reserves:
Share capital 2,003.30 2,003.30 2,003.00 2,003.00 2,003.30
Share Premium 2,200.00 2,200.00 2,200.00 2,200.00 2,200.00
Translation Reserve - - - - 5,312.70 36,688.40
Retained Earnings and Dividends ######### 138,876.80 133,432.00 140,578.00 146,664.20
Total Equity to Parent ######### 143,080.10 137,635.00 139,468.30 187,555.90
Total Equity to Non-controlling interest - - - 40,232.30 75,810.00
Total Equity ######### 143,080.10 137,635.00 179,700.60 263,365.90

Liabilities:
Non-current liabilities:
Borrowings - - - 44,910.80 42,050.00
Payables and Accrued Expenses 1,131.00 985.40 - 4,330.60 27,359.30
Provisions - - 3,151.40 3,183.30 4,462.80
Contract Liability 739.50 983.40 2,436.10 1,937.50 1,607.80
Lease Liability - 11,675.30 11,954.20 14,584.90 29,984.00
1,870.50 13,644.10 17,541.70 68,947.10 105,463.90
Current liabilities:
Payables and Accrued Expenses 28,703.90 29,920.10 34,021.40 41,312.60 72,688.20
Borrowings 4,032.00 8,000.00 14,772.00 20,400.00 43,492.30
Dividends Payable - 1,045.10 8,684.10 12,053.90 1,783.00
Provisions 3,893.50 4,462.30 2,561.50 3,373.80 4,524.10
Contract Liability 9,279.60 9,410.90 11,033.50 10,210.60 10,125.90
Lease Liability - 3,549.40 4,119.50 5,508.50 5,354.90
Tax Payable 351.30 112.90 260.30 5,291.20 2,408.80
46,260.30 56,500.70 75,452.30 98,150.60 140,377.20
Total Liabilities 48,130.80 70,144.80 92,994.00 167,097.70 245,841.10
Total Capital and Liabilities ######### 213,224.90 230,629.00 346,798.30 509,207.00

CA35P Page 5
Out of 11
 2019 2020 2021 2022 2023
Cash flows from Operating activities (Sh."million") 99,812 110,363 105,197 110,701 115,151
Number of Shares (million) 40,065 40,065 40,065 40,065 40,065
Market Price per share (Sh.) 28.00 27.00 37.00 35.00 18.10
Dividends Paid (Sh."million") 44,071.00 73,877.30 66,482.00 59,132.30 63,557.70

Key Metrics 2019 2020 2021 2022 2023

Total Assets Turnover 1.30 1.23 1.14 0.86 0.61
Net Profit Margin 50.27% 53.36% 51.20% 45.28% 37.52%
Return on Investment 32.47% 34.54% 29.78% 19.46% 10.31%
Return on Equity 43.29% 51.48% 49.90% 37.56% 19.93%
Current Ratio 1.08 0.86 0.74 0.66 0.52
Debt Ratio 25.01% 32.90% 40.32% 48.18% 48.28%
Earnings Per Share (Sh.) 1.56 1.84 1.71 1.68 1.31
Dividend Per share(Sh.) 1.10 1.84 1.66 1.48 1.59
Book Value Per Share (Sh.) 3.60 3.57 3.44 3.48 4.68

Required:
Prepare a dashboard showing the financial performance and financial position of the organisation over the 5-year period ended 31 March 2023.

The dashboard should include the following charts:

(a) Revenue and profit. (2 marks)

(b) Key expenses. (2 marks)

(c) Non current assets. (2 marks)

(d) Current assets. (2 marks)

(e) Non-current liabilities. (2 marks)

(f) Payables and current liabilities. (2 marks)

(g) Efficiency and liquidity ratios. (2 marks)

(h) Profitability ratios. (2 marks)

(i) Debt ratio. (2 marks)

(j) Investors ratios. (2 marks)

(Total: 20 marks)

CA35P Page 6
Out of 11
QUESTION 22:
Matrix Limited has provided the following data for the six months ended 31 December 2023:

Month Revenue Cost of Sales Gross Profit Operating Expenses

Sh."million" Sh."million" Sh."million" Sh."million"
Jul-23 3,430 2,400 1,030 310
Aug-23 3,780 2,830 950 280
Sep-23 3,200 2,300 900 270
Oct-23 3,650 2,740 910 275
Nov-23 3,920 2,900 1,020 305
Dec-23 4,100 3,100 1,000 300

Depreciation
and
Month EBITDA Amortisation EBIT Interest EBT
Sh."million" Sh."million" Sh."million" Sh."million" Sh."million"
Jul-23 720 290 430 120 310
Aug-23 670 270 400 115 285
Sep-23 630 250 380 112 268
Oct-23 635 250 385 110 275
Nov-23 715 280 435 98 337
Dec-23 700 290 410 95 315

End Inventory Receivables Payables Cash/Bank Balances

Month Sh."million" Sh."million" Sh."million" Sh."million"
Jul-23 980 1,200 720 150
Aug-23 1,020 1,230 800 230
Sep-23 960 1,190 950 180
Oct-23 910 1,320 1,000 90
Nov-23 1,030 1,280 850 100
Dec-23 1,000 1,340 900 80

Required:
(a) Summarise the above data with the following additional sections for the Chief Finance Officer (CFO) Dashboard.

(i) Total profit or loss for the six months.

(ii) Various profit margins.

(iii) Days of Purchases (DOP) using end of year balances (Ignore averages).

(iv) Days of Inventory (DOI) using end of year balances (Ignore averages).

(v) Days of Sales (DOS) using end of year balances (Ignore averages).

Assume 360 days in a year and that inventory at the beginning of July was worth Sh.900 million. (8 marks)

(b) Prepare the CFO's dashboard showing the following charts:

(i) Revenue and profit. (2 marks)

(ii) Profit margin. (2 marks)

(iii) Payables levels. (2 marks)

(iv) Inventory levels. (2 marks)

(v) Receivables levels. (2 marks)

(vi) Number of days sales outstanding (DSO) and number of days payables outstanding (DPO). (2 marks)
(Total: 20 marks)

CA35P Page 7
Out of 11
QUESTION 23:
Sunrise Limited manufactures office cabinets for both local and export markets.

The following data relates to the cost of production of an office cabinet:

Sh.
Selling price per unit 10,000
Variable cost per unit 5,000
Total fixed costs 50,000,000

Required:
(a) In batches of 1,000 units, determine the breakeven point in units using a graph.
Indicate the profit zone and loss zone in your graph. (8 marks)

(b) The management of Sunrise Limited is evaluating various production and sales levels to determine the profit after tax.
Assuming a tax rate of 30%, plot a graph depicting revenue and profit after tax. (8 marks)

(c) The management of the company is evaluating the effect of selling at various percentages above the break-even point. Beginning
from 0% and in batches of 5% change point up to 50%, plot a graph depicting target revenue, target profit
after tax and margin of safety. (4 marks)
(Total: 20 marks)

CA35P Page 8
Out of 11
 SECTION III (20 MARKS)

Answer only ONE (1) question in this section.

QUESTION 24:
You have a new audit client, Miriam Akello, who began a dental practice at AMK Doctors' Plaza in the year 2023.

The following transactions took place during the year ended 31 December 2023:

1. Miriam opened a separate bank account for the practice and deposited Sh.5 million as capital.In addition, she obtained a loan from the bank
amounting to Sh.5 million at an interest rate of 12% annually. The loan will be paid over a 5 year period at Sh.1 million annually, together with
interest due at the end of each year.

2. Miriam imported three dental equipment at a price of Sh.600,000 each and incurred freight, insurance and port clearance costs of Sh.200,000.
The equipment is depreciated over five years.

3. Miriam also bought other equipment for Sh.1 million, furniture and fixtures for Sh.2 million and dental books worth Sh.500,000. Both the equipment
and furniture were to be depreciated over 8 years, while the dental books have a useful life of 5 years for the purpose of amortisation.

4. Miriam hired a dental assistant, who also doubled as the clinic administrator at Sh.60,000 monthly salary, a receptionist, carrying out other clerical duties
at Sh.30,000 per month and a cleaner/casual at Sh.15,000 per month. They all began employment on 1 January 2023.

5. Miriam also hired the services of two other dentists to serve the increased number of patients or when she was visiting another hospital for consultation.
During the year, the two dentists were paid for professional services at Sh.2 million. In addition, Miriam offered some interns learning
opportunities and paid them a total stipend of Sh.300,000.

6. During the year, patients paid Sh.6 million in cash, while those on various insurance and medical covers were treated at a total of Sh.4 million.
By the end of the year, the corporates and insurance companies had paid Sh.2.8 million directly into the business bank account. Miriam also noted
that a client owing Sh.200,000 became bankrupt and would likely not pay, while the balance had nearly 0% probability of default.

7. The cash that was received was banked but after paying for the following items:
● Surgical and prescription medicine Sh.500,000
● Stationery Sh.40,000
● Cleaning consumables Sh.20,000

Cash drawings for personal use by Miriam averaged Sh.40,000 per month. By the end of the year, only Sh.120,000 was available in the office safe.

8. Majority of transactions took place in the bank, except for the one highlighted in note 7.

Miriam placed some amount in a fixed deposit account and earned interest of Sh.120,000. Other expenses were mainly salaries to staff, interest on loan, rent
of Sh.100,000 per month, electricity and water worth Sh.60,000 for 11 months to 30 November 2023. She also paid Sh.30,000 as subscriptions to the
dental association.

Note that Miriam had paid 3 months' deposit on rent, which was refundable upon the termination of the lease.

Miriam also drew Sh.60,000 every month for personal expenses from the bank. Meanwhile, the electricity and water bills for December 2023
had not been paid, but were subsequently received and settled in January 2024 at Sh.4,500.

9. Miriam bought surgical and prescription medicine worth Sh.1.5 million on credit. By the end of the year, she had already paid Sh.800,000 of the amount
owing while surgical and prescription medicine worth Sh.400,000 was available by the end of the year.

Required:
Prepare the audit schedules showing the following four sections having the debit and credit columns:

(a) The draft trial balance before adjustments.

(b) Adjustments.

(c) The profit or loss items.

(d) The financial position items.

(Total: 20 marks)

CA35P Page 9
Out of 11
rest on loan, rent
QUESTION 25:
Mwanaisha began a sole trading business dealing in electronic goods. She is registered for Value added Tax (VAT).

Details for the month of March 2023 are as follows:

1. Sales:
Sh."000"
Standard rate 1,900
Zero rated 418
Exempt 342

2. Customers for the sales at standard rate are offered a 5% discount if they settle within the same month.
Usually, 40% of the customers take the offer.

3. Cash purchases:
Sh."000"
Standard rate 1,200
Exempt 500

4. The exempt sales were all from the batch of exempt purchases with some remaining in inventory at the end of the month.

5. During the month, Mwanaisha paid rent for the business premises for the month of March. Rent is charged at Sh.80,000 per month.

6. The business reported actual credit losses of Sh.280,000 and another expected credit loss of Sh.50,000.

7. A supplier from whom the business had made purchases of Sh.292,000 and a customer to whom goods were sold at standard rate
in January 2023 and still owed Sh.325,000 were declared bankrupt.

8. At the end of every month, Mwanaisha prepays the electricity for the following month using prepaid meter tokens based on standard
usage. She paid Sh.42,500 for April 2023, but she had prepaid Sh.38,500 for March 2023.

10. Other expenses paid during the month:

Sh.
Telephone 13,200
Audit fee (Including VAT) 111,000
Stationery 36,000

11. Mwanaisha made donations to registered charities consisting of Sh.100,000 in cash and Sh.280,000 in form of goods.

12. Closing inventory for the month of March 2023 was valued at Sh.340,000.

Note: All transactions are quoted at the standard rate of 16% unless stated otherwise.

Required:
The Value Added Tax (VAT) payable/refundable for the month of March 2023. (Total: 20 marks)

CA35P Page 10
Out of 11
 CPA POST ADVANCED LEVEL
BUSINESS DATA ANALYTICS (PRACTICAL PAPER)
FRIDAY: 8 December 2023. Morning Paper. Time allowed: 3 hours.
SECTION I has twenty (20) Multiple Choice Questions each carrying one (1) mark. SECTION II has two (2) practical
questions each carrying thirty (30) marks. SECTION III has three (3) practical questions each carrying twenty (20) marks.
Answer ALL questions in SECTION I and SECTION II. Answer any one (1) question out of the three (3) questions in
section III.
Under SECTION II and SECTION III, you are required to create Ms Excel Worksheets with the name of the entity in
each question and input your workings and solutions. You may use the Excel template within the question.
RATES OF TAX (Including wife’s employment, self-employment and professional income rates of tax).
Year of income 2022.
Monthly taxable pay Annual taxable pay Rate of tax
(Sh.) (Sh.) % in each Sh.
1 - 24,000 1 - 288,000 10%
24,001 - 32,333 288,001 - 388,000 25%
Excess over - 32,333 Excess over - 388,000 30%
Personal relief Sh.2,400 per month (Sh.28,800 per annum).
Investment allowance: Rate of investment allowance Residual value Prescribed benefit rates of motor vehicles
(25% per year provided by employer
on equal (i) Saloons, Hatch Backs and Estates
instalments) Monthly Annual
Capital expenditure incurred on: rates rates
(Sh.) (Sh.)
(a) Buildings: Up to 1200 cc 3,600 43,200
 Hotel building 50% in the first year of use 25% 1201 - 1500 cc 4,200 50,400
 Building used for manufacture 50% in the first year of use 25% 1501 - 1750 cc 5,800 69,600
 Hospital buildings 50% in the first year of use 25% 1751 - 2000 cc 7,200 86,400
 Petroleum or gas storage facilities 50% in the first year of use 25% 2001 - 3000 cc 8,600 103,200
 Educational/hostels building 10% per year on straight line basis Over - 3000 cc 14,400 172,800
 Commercial building 10% per year on straight line basis
(b) Machinery: (ii) Pick-ups, Panel Vans
 Machinery used for manufacture 50% in the first year of use 25% (unconverted)
 Hospital equipment 50% in the first year of use 25% Up to - 1750 cc 3,600 43,200
 Ships or aircraft 50% in the first year of use 25% Over - 1750 cc 4,200 50,400
 Motor vehicles and heavy earth 25% per year on straight line basis
moving equipment
 Computer software, calculators, 25% per year on straight line basis
copiers and duplicating machines
 Furniture and fittings 10% per year on straight line basis
 Telecommunication equipment 10% per year on straight line basis
 Film equipment by a local producer 25% per year on straight line basis
 Machinery used to undertake 50% in the first year of use 25%
operations under prospecting rights
and exploration under mining rights
 Other machinery 10% per year on straight line basis
(c) Purchase/acquisition of right to use 10% per year on straight line basis (iii) Land Rovers/Cruisers 7,200 86,400
fibre optic cable by telecommunication
operation
(d) Farm works 50% in the first year of use 25%

Commissioner’s prescribed benefit rates: Monthly rates Annual rates

Services (Sh.) (Sh.)
(i) Electricity (Communal or from a generator) 1,500 18,000
(ii) Water (Communal or from a borehole) 500 6,000
Agriculture employees: Reduced rates of benefits
(i) Water 200 2,400
(ii) Electricity 900 10,800

CA35P Page 1
Out of 10
 SECTION I (20 MARKS)

Answer ALL questions in this section.

QUESTION ONE
Which of the following formulas in Excel will provide a subtotal of variables provided in a list of vertically listed cells?
A. =sum (A1:H20)
B. =sum (A1:A20)
C. =sum (A1;H20)
D. =sum (A;A20)

ANSWER: B

QUESTION TWO
Which of the following shortcut keys will enable an analyst to view the formula in a cell?
A. Ctrl + ;
B. Ctrl +:
C. Ctrl + ‘
D. Ctrl + ]

ANSWER: C

QUESTION THREE
Which of the following is the CORRECT one for the HLOOKUP function in excel?
A. = HLOOKUP(lookup_value, [range_lookup], table_array, column_index_num)
B. = HLOOKUP(lookup_value, table_array, row_index_num, [range_lookup])
C. = HLOOKUP(lookup_value, column_index_num, [range_lookup], table_array)
D. = HLOOKUP([range_lookup], lookup_value, table_array, column_index_num)

ANSWER: B

QUESTION FOUR
The following statements relate to the ‘Vs’ of big data:
1. Volume: It refers to the size of big data.
2. Veracity: It refers to the assurance of integrity or credibility of the data.
3. Value: How useful the data is in decision making.

Which of the following statements is CORRECT?

A. Only statement 1 is correct
B. Only statement 2 is correct
C. Only Statement 3 is correct
D. All the statements are correct

ANSWER: A

QUESTION FIVE
Which of the following ‘Vs’ of data provides for data as being authentic, trustworthy and original?
A. Veracity
B. Value
C. Variability
D. Variety

ANSWER: A

QUESTION SIX
The following are activities that are included in data modelling:
1. Physical
2. Conceptual
3. Logical
4. Implementation

CA35P Page 2
Out of 10
Which of the following represents the CORRECT steps in data modelling?
A. 1,2,3,4
B. 2,3,4,1
C. 2,3,1,4
D. 3,1,2,4

ANSWER: C

QUESTION SEVEN
Which of the following is NOT a data cleaning technique?
A. Remove duplicates.
B. Remove irrelevant data.
C. Standardise capitalisation.
D. Convert data from text to numeric

ANSWER: D

QUESTION EIGHT
Part of the Cross-Industry Standard Process for data mining requires business understanding. Which of the following is the
CORRECT description of business understanding?
A. Defining specific goals and requirements for data mining
B. Obtain an overview of the available data and their quality
C. Data preparation for further validation
D. Data is reviewed in the context of the business

ANSWER: A

QUESTION NINE
Which of the following questions is NOT relevant in the understanding of data as per the Cross-Industry Standard Process
for data mining?
A. Is the data complete (does it cover all the cases required)?
B. Does the data contain errors?
C. Are there missing values in the data?
D. Is the data current?

ANSWER: D

QUESTION TEN
Data analytics can be analysed at four levels:
1. What happened?
2. What could happen?
3. What should happen?
4. Why it happened?

Which of the following is the alternative description of Level 4?

A. Predictive
B. Descriptive
C. Diagnostic
D. Prescriptive

ANSWER: C

QUESTION ELEVEN
Mhasibu is using data analytics to make management decisions. Some decisions and types of analytics are as follows:
1. Prepare variance analysis report (Descriptive Analytics)
2. Prepare flexible budgets evaluating various scenarios (Prescriptive)

CA35P Page 3
Out of 10
Which of the following statement(s) is (are) TRUE?
A. Statement One only
B. Statement Two only
C. Both Statements are True
D. None of the statements are True

ANSWER: D

QUESTION TWELVE
Which of the following software does NOT focus only on data visualisation tools?
A. Google Charts
B. Python
C. Grafana
D. Tableu

ANSWER: B

QUESTION THIRTEEN
A pie chart will likely be classified as what type of data visualisation?
A. Relationship
B. Distribution
C. Composition
D. Comparison

ANSWER: B

QUESTION FOURTEEN
Under data ethics, when algorithms are used to predict past decisions by human beings, this may lead to which unethical
behaviour?
A. Human bias
B. Discrimination
C. Intrusion to privacy
D. Lack of transparency

ANSWER: A

QUESTION FIFTEEN
While data protection deals solely with personal data, data security is directed to protect all sorts of information, regardless
of whether it's digital or analog, comes from the natural person or not.

Which of the above is CORRECT?

A. The definition of data protection only
B. The definition of data security only
C. Both definitions
D. None of the definitions

ANSWER: C

QUESTION SIXTEEN
Which one of the following concepts does NOT apply in data protection of digital platforms?
A. Encryption of personal data.
B. Anonymization of personal data.
C. Pseudonymization of personal data.
D. Biometric access

ANSWER: D

CA35P Page 4
Out of 10
QUESTION SEVENTEEN
Which of the following will NOT lead to a challenge in data privacy in an organisation?
A. Data Privacy regulations
B. Poor data visibility
C. Too much data
D. Too many devices

ANSWER: A

QUESTION EIGHTEEN
Companies must do everything they can to use customer data ethically, preserve customers' privacy, keep them informed of
how their data is being used, provide consumers with options to opt in or out, and walk the fine line between serving up
relevant, targeted content and overstepping boundaries.
This definition will likely be?
A. Data confidentiality
B. Data Security
C. Data Privacy
D. Data protection

ANSWER: A

QUESTION NINETEEN
Which of the following is NOT a benefit of data analytics?
A. Customer retention
B. Strategic analysis
C. Profitability
D. Risk identification

ANSWER: C

QUESTION TWENTY
Despite the appreciation and adoption of big data and analytics by organisations, which of the following is a risk of poor use
of big data and analytics?
A. Cost optimisation
B. Staff dependence
C. Infrastructure upgrade
D. Poor heuristics

ANSWER: D
……………..……………………………………………………………….

CA35P Page 5
Out of 10
 SECTION II (60 MARKS)
Answer BOTH questions in this Section.

QUESTION 21
Fanisi Limited, a listed company, has provided the following trial balance as at 30 June 2023.

Sh."000" Sh."000"
Revenue 662,000.00
Purchases 417,000.00
Inventory as at 1 July 2022 111,000.00
Distribution Costs 128,000.00
Administration Expenses 86,500.00
Interest on Loanstock paid 1,500.00
Rent Income 12,000.00
Land and Buildings 210,000.00
Accumulated depreciation as at 1 July 2022 30,000.00
Plant and equipment 64,500.00
Accumulated depreciation as at 1 July 2022 31,500.00
Investment Property 137,000.00
Trade Receivables 130,000.00
Cash and Cash Equivalents 8,000.00
Ordinary Share Capital 25,000.00
Share Premium 61,000.00
Retained Earnings as at 1 July 2022 188,250.00
Dividends Paid 6,500.00
General Reserve 142,500.00
8% Loan stock 37,500.00
Trade Payables 108,500.00
Proceeds on sale of equipment 1,750.00
1,300,000.00 1,300,000.00

Further information to be taken into account:

1. Inventory is provided at Sh.97,000,000 at cost and Sh.95,250, 000 at net realisable value.
2. At the beginning of the year, Fanisi Limited disposed of some old equipment for Sh.1,750,000. The equipment had cost Sh.3,750, 000 and had
accumulated depreciation brought forward at 1 July 2022 of Sh.750,000.
There were no other additions or disposals to property, plant and equipment in the year.
3. The company classifies depreciation on plant and equipment as a cost of sale and on land and buildings as an administrative cost.
Depreciation rates are as follows:
Buildings - Straight line over 50 years
Plant and equipment - 20% reducing balance

Fanisi Limited's accounting policy is to charge a full year's depreciation in the year of an asset's purchase and none in the year of disposal.
Fanisi Limited's land and buildings were eight years old as at 1 July 2022.

4. On 30 June 2023, the company revalued its land and buildings to Sh.190,000,000 (including Sh.2,500,000 for the land). The company
follows the revaluation model of IAS 16 for its land and buildings, but no revaluations had been carried out. The company wishes to treat
the revaluation surplus as being realised on disposal of the assets.

5. Expected credit loss (an administration expense) is on average 10% of the trade receivables.
6. The income tax charge (current and deferred tax) for the year is estimated at Sh.11,250,000 (of which Sh.4,250,000 relates to future
payable tax on the revaluation of land and buildings to be charged to other comprehensive income (and the revaluation surplus).

7. On 1 January 2023, Fanisi Limited made a 1 for 4 bonus issue, capitalising its general reserve.
This transaction had not yet been accounted for. The fair value of the company's shares on the date of the bonus issue was Sh.37.50 per share.

8. Fanisi Limited uses the fair value model of IAS 40. The fair value of the investment property as at 30 June 2023 was Sh.147,000,000.

Required:
As per IAS 1:

(i) Statement of Profit or Loss and other comprehensive incomes for year ended 30 June 2023.
(ii) Statement of changes in Equtity for the year ended 30 June 2023.
(iii) Statement of financial position as at 30 June 2023.
(Total: 30 marks)

CF36P page 6
Out of 10
QUESTION 22
Safari Limited is evaluating a project with the following details:

Initial Investment Sh.100,000,000

Residual Value Sh.10,000,000
Year 1 Project Cash Flows Sh.25,000,000
Annual Cash Flow growth rate from Year 2 10%
Project Life 5 Years

Required:
(a) Compute the following Project Metrics:
(i) The Payback Period.
(ii) The Net Present Value (NPV) (Assume a discount rate of 12%).
(iii) The Profitability Index (PI) (Assume a discount rate of 12%).

(b) Using a graph, determine the project's Internal Rate of Return.

(Total: 30 marks)

CA35P page 7
Out of 10
 SECTION III (20 MARKS)

Answer ONE (1) question out of the THREE (3) questions in this section.
QUESTION 23
Freshian Limited manufactures and sells fresh juice.

The company has provided the following data for the year 2022:

Quantities Produced Production Costs

Sh."000"
Jan-22 300,000 36,000.00
Feb-22 240,000 28,000.00
Mar-22 400,000 46,000.00
Apr-22 340,000 38,000.00
May-22 240,000 32,000.00
Jun-22 500,000 60,000.00
Jul-22 440,000 54,000.00
Aug-22 180,000 22,000.00
Sep-22 360,000 48,000.00
Oct-22 600,000 64,000.00
Nov-22 560,000 58,000.00
Dec-22 700,000 72,000.00

Required:
(a) Generate the regression output from MS Excel with the following information:

(i) Regression Statistics. (2 marks)

(ii) Analysis of Variance (ANOVA). (3 marks)

(iii) Intercept and slope coefficients with their details including lower and upper bounds at 95% confidence level.
(3 marks)
(b) Prepare a schedule showing the quantities, actual cost and predicted costs given the above quantities.
Include the lower and upper boundaries at 95% confidence interval.
(6 marks)
(c) Prepare a chart for the information in part (b). (6 marks)

(Total: 20 marks)

CA35P page 8
Out of 10
QUESTION 24
Your new audit client, Safari Limited, began operations in 2021. Unfortunately, Safari Limited has not availed the audited financial statements for 2021 due to a disagreement with the former auditor.
After observing all the protocols, you proceed to audit the financial statements for year 2022. The client uses a part time accountant whose work is to update prime records, prepare bank reconciliations
and some aspects of the ledgers.

After analysing the records, you are able to extract the following information:

Cash at the Bank

Sh."000" Sh."000"
Balance as at 1.1.2022 5,720.00 Trade payables 100,070.00
Trade Receivables 185,790.00 Distribution expenses 29,500.00
Cash In Hand 146,050.00 Administration expenses 54,300.00
Other operating expenses 25,940.00
Interest on loan 15,000.00
Dividends 52,000.00
Balance as at 31.12.2022 12,250.00 Motor vehicles 73,000.00
349,810.00 349,810.00

Cash in Hand
Sh."000" Sh."000"
Balance as at 1.1.2022 620.00 Trade Payables 18,500.00
Trade Receivables 163,000.00 Administration Expenses 3,750.00
Capital 5,850.00 Cash at Bank 146,050.00
Operating Expenses 670.00
- Balance as at 31.12.2022 500.00
169,470.00 169,470.00

Trade Receivables
Sh."000" Sh."000"
Balance as at 1.1. 2022 18,500.00 Cash in hand 163,000.00
Sales 350,990.00 Cash at the Bank 185,790.00
- Balance as 31.12.2022 20,700.00
369,490.00 369,490.00

Trade Payables
Sh."000" Sh."000"
Cash in Hand 18,500.00 Balance as at 1.1.2022 12,500.00
Cash at Bank 100,070.00 Purchases 120,270.00
Balance at 31.12.2022 14,200.00 _____________________
132,770.00 132,770.00

1 January 2022 31 December 2022

Sh."000" Sh."000"
Land at valuation 100,000.00 ?
Buildings at cost 140,000.00 140,000.00
Accumulated depreciation - Buildings 15,000.00 ?
Furniture and equipment at cost 100,000.00 100,000.00
Accumulated depreciation - Furniture and equipment 25,000.00 ?
Inventory 56,500.00 59,900.00
Share capital 100,000.00 ?
Share premium 3,000.00 ?
10% Long-term loan 150,000.00 150,000.00

Additional information:
1. The owners introduced additional capital by cash of which Sh.850,000 was agreed as share premium.

2. Land is to be revalued upwards by Sh.10 million.

3. The following amounts have been agreed for depreciation.

Sh."000"
Buildings 5,000.00
Motor Vehicles 14,600.00
Furniture and Equipment 10,000.00

4. The following adjustments are necessary:

Sh."000"
Accrued administration expenses 650.00
Prepaid Operating Expenses 2,100.00
Income Tax Expense 15,600.00
Credit Loss 1,700.00
Expected Credit Loss on balance 10%

Required:
Prepare the audit working schedule having 5 sections for beginning trial balance, end year draft trial balance, adjustments, profit or loss items and statement of finacial position item.
Each section should have the debit and credit columns (therefore 8 columns).
(Total: 20 marks)

CA35P page 9
Out of 10
QUESTION 25
Musemi, an electronics engineer, retired from active employment in early 2021. He set up a factory in Thika on 30 September 2021 to produce mechanical and auto
spare parts at a cost of Sh.120 million. The factory commenced operations in January 2022.

The cost of the factory comprised the following:

Sh."000"
Factory building 46,875.00
Office (within the factory building) 15,625.00
Reinforcement of concrete floor to affix machinery 4,125.00
Land 20,000.00
Architect's fee 6,075.00
Parking bay 2,475.00
Electrical wiring 3,700.00
Conveyer belt 3,000.00
Lift and escalators 10,000.00
Special shafts for lifts 8,125.00
120,000.00

Additional structures and works constructed and utilised from 1 January 2022 were as follows:

Sh."000"
Residential house 2,400.00
Workplace nursery 3,000.00
Drawing and design room 1,800.00

To improve perfomance in the factory, an Oracle database that provides cloud service was installed at a cost of Sh.1,125,000.
The computers in the drawing and design room had a Computer Aided Design (CAD) application installed at a cost of Sh. 675,000.

A building that had been constructed at a cost of Sh.30,000,000 was leased from Salama manufacturers Ltd. for five years.
The annual lease rental was agreed at Sh.7,000,000. Musemi imported processing machinery from China at a cost of Sh.13,000,000 and installed it in the building.

Two warehouses were constructed at a cost of Sh.5,625,000 and utilised from 1 September 2022.

The following assets were purchased or constructed during the year:

Sh."000"
Furniture and fittings (including Sh.550,000 for the workplace nursery) 1,550.00
Library fixtures (stocked with mechanical engineering volumes) 1,200.00
Computers and electronic adding machines 2,100.00
Motor vehicle (a second-hand BMW) 5,750.00
Lorry (four tonnes) 7,000.00
Tuk-tuk for the messenger 450.00
Backhoe loader 9,200.00
Additional processing machinery 22,500.00
Mobile crane 4,750.00

Required:
Capital allowances due to Musemi for the year ended 31 December 2022. (Total: 20 marks)

CA35P page 10
Out of 10
 CPA POST ADVANCED LEVEL
BUSINESS DATA ANALYTICS (PRACTICAL PAPER)
THURSDAY: 24 August 2023. Morning Paper. Time allowed: 3 hours.
Answer ALL questions in SECTION I and SECTION II. Answer any one (1) question out of the three (3) questions in
section III. SECTION I has twenty (20) Multiple Choice Questions each carrying one (1) mark. SECTION II has two (2)
practical questions each carrying thirty (30) marks. SECTION III has three (3) practical questions each carrying twenty
(20) marks.
Under SECTION II and SECTION III, you are required to create Ms Excel Worksheets with the name of the entity in
each question and input your workings and solutions. You may use the Excel template within the question.
RATES OF TAX (Including wife’s employment, self-employment and professional income rates of tax).
Year of income 2022.
Monthly taxable pay Annual taxable pay Rate of tax
(Sh.) (Sh.) % in each Sh.
1 - 24,000 1 - 288,000 10%
24,001 - 32,333 288,001 - 388,000 25%
Excess over - 32,333 Excess over - 388,000 30%
Personal relief Sh.2,400 per month (Sh.28,800 per annum).
Investment allowance: Rate of investment allowance Residual value Prescribed benefit rates of motor vehicles
(25% per year provided by employer
on equal (i) Saloons, Hatch Backs and Estates
instalments) Monthly Annual
Capital expenditure incurred on: rates rates
(Sh.) (Sh.)
(a) Buildings: Up to 1200 cc 3,600 43,200
 Hotel building 50% in the first year of use 25% 1201 - 1500 cc 4,200 50,400
 Building used for manufacture 50% in the first year of use 25% 1501 - 1750 cc 5,800 69,600
 Hospital buildings 50% in the first year of use 25% 1751 - 2000 cc 7,200 86,400
 Petroleum or gas storage facilities 50% in the first year of use 25% 2001 - 3000 cc 8,600 103,200
 Educational/hostels building 10% per year on straight line basis Over - 3000 cc 14,400 172,800
 Commercial building 10% per year on straight line basis
(b) Machinery: (ii) Pick-ups, Panel Vans
 Machinery used for manufacture 50% in the first year of use 25% (unconverted)
 Hospital equipment 50% in the first year of use 25% Up to - 1750 cc 3,600 43,200
 Ships or aircraft 50% in the first year of use 25% Over - 1750 cc 4,200 50,400
 Motor vehicles and heavy earth 25% per year on straight line basis
moving equipment
 Computer software, calculators, 25% per year on straight line basis
copiers and duplicating machines
 Furniture and fittings 10% per year on straight line basis
 Telecommunication equipment 10% per year on straight line basis
 Film equipment by a local producer 25% per year on straight line basis
 Machinery used to undertake 50% in the first year of use 25%
operations under prospecting rights
and exploration under mining rights
 Other machinery 10% per year on straight line basis
(c) Purchase/acquisition of right to use 10% per year on straight line basis (iii) Land Rovers/Cruisers 7,200 86,400
fibre optic cable by telecommunication
operation
(d) Farm works 50% in the first year of use 25%

Commissioner’s prescribed benefit rates: Monthly rates Annual rates

Services (Sh.) (Sh.)

(i) Electricity (Communal or from a generator) 1,500 18,000

(ii) Water (Communal or from a borehole) 500 6,000
Agriculture employees: Reduced rates of benefits
(i) Water 200 2,400
(ii) Electricity 900 10,800
CA35P Page 1
Out of 10
 SECTION I (20 MARKS)

Answer ALL questions in this section.

QUESTION ONE
How fast data is processed and accessed is represented by which of the following V’s of Big Data?
A. Velocity
B. Validity
C. Virality
D. Veracity
ANSWER: A
QUESTION TWO
Data modelling is a process that helps one to understand the structures, form, and relationships of information. It requires one
to first think of the model, then identify the model details and then how the model will be implemented. Which of the
following is the correct name of data model implementation?
A. Conceptual
B. Logical
C. Physical
D. Rational
ANSWER: C
QUESTION THREE
The following activities are included in the Cross-Industry Standard Process for data mining:
1. Data Preparation
2. Data Understanding
3. Data Deployment
4. Business Understanding
5. Data Evaluation
6. Data modelling
Which of the following is the proper sequence of these activities?
A. 2,1,3,5,6,4
B. 1,3,5,6,4,2
C. 1,6,5,2,3,4
D. 4,2,1,6,5,3

ANSWER: D
QUESTION FOUR
Which of the following is NOT an activity in the modeling stage in the Cross-Industry Standard Process for Data Mining?
A. Build
B. Select
C. Design
D. Evaluate
ANSWER: D
QUESTION FIVE
For data visualisation, a bar chart will likely be classified as a______________.
A. Distribution
B. Relationship
C. Comparison
D. Composition
ANSWER: C
QUESTION SIX
A data analyst would like to present data in the form of a distribution. He will likely use all the following EXCEPT?
A. Line chart
B. Histogram
C. Scatter graph
D. Pie Chart
ANSWER: D
CA35P Page 2
Out of 10
QUESTION SEVEN
Data Ethics are the norms of behaviour that promote appropriate judgements and accountability when acquiring, managing,
or using data, with the goals of protecting civil liberties, minimising risks to individuals and society, and maximising the
public good. All the following promote data ethics EXCEPT?
A. Complying with the law
B. Promoting transparency
C. Respecting privacy and confidentiality
D. Fairness

ANSWER: A

QUESTION EIGHT
Which of the following is NOT a concept of data integrity?
A. Data availability
B. Data currency
C. Data accuracy
D. Data validity
ANSWER: A

QUESTION NINE
With the high volume of data available for businesses, collecting meaningful data is a big challenge. To enable handling large
volumes of data, data collection tools are critical. Which of the following will likely be a data collection software?
A. Excel
B. Python
C. R
D. Zoho

ANSWER: D
QUESTION TEN
A data analyst makes the following comments about functions in excel:
1. To determine the variance of a list of 10 numbers we use =VAR.P(A1:A10)
2. To determine the standard deviation of 10 numbers we use = VAR.P(A1:A10)
3. To determine the variance of a list of 10 numbers we use = VAR.S(A1:A10)
Which of the following statements is TRUE?
A. Only statement 1 is correct
B. Only statement 2 is correct
C. Only statement 3 is correct
D. All the statements are correct

ANSWER: C

QUESTION ELEVEN
The following are the various phases of data models:
1. Physical
2. Logical
3. Conceptual
Which of the following represents the correct order of the models?
A. 1,2,3
B. 2,3,1
C. 3,1,2
D. 3,2,1

ANSWER: D

QUESTION TWELVE
Which of the following techniques is LEAST effective in obtaining data for easy storage and analysis?
A. Interviews
B. Self-administered email questionnaire
C. Online questionnaire such as on google forms
D. Recorded interviews

ANSWER: A
CA35P Page 3
Out of 10
QUESTION THIRTEEN
According to cross-industry standard process for data mining, data preparation involves:
A. Obtaining data and information from different sources, processing and storing for future reference.
B. Fixing or removing incorrect, corrupted, incorrectly formatted data and information.
C. Collecting data and information about business requirements from stakeholders and end users.
D. Creating a visual representation of either a whole information system or parts of it to communicate connections
between data points and structures.
ANSWER: B
QUESTION FOURTEEN
The following statements are associated with big data:
(i) Big data is a collection of data that is huge in volume, yet growing exponentially with time.
(ii) Big data that can be stored, accessed and processed in the form of fixed format is termed as structured data.
(iii) Big data that is heterogeneous and contains a combination of simple text files and images is semi structured.

Which of the following choices is correct?

A. Statements (i) and (ii) are correct
B. Statements (i) and (iii) are correct
C. Statements (ii) and (iii) are correct
D. All the statements are correct

ANSWER: A
QUESTION FIFTEEN
Which of the following is NOT the correct definition of one of the ‘V’s of Big Data?
A. Velocity: The speed at which big data is collected and processed
B. Value: The usefulness of the information obtained from analysing big data
C. Veracity: Multifactor, unstructured and dynamic nature of big data
D. Volume: The size of big data

ANSWER: C
QUESTION SIXTEEN
The following are the different categories of data analytics:
1. Diagnostic
2. Predictive
3. Descriptive
4. Prescriptive
Which of the following is the correct order of value?
A. 3,1,4,2
B. 3,4,2,1
C. 2,3,4,1
D. 1,3,2,4

ANSWER: A

QUESTION SEVENTEEN
David Mongare is the audit manager of Mkaguzi Auditors. He is carrying out analytical reviews at two stages: at planning
and at substantive testing. Which type of analytics relates to the two stages?
A. Predictive analytics for planning and diagnostic analytics for substantive testing
B. Diagnostic analytics for planning and predictive analytics for substantive testing
C. Descriptive analytics for planning and diagnostic analytics for substantive testing
D. Predictive analytics for planning and descriptive analytics for substantive testing
ANSWER: D
QUESTION EIGHTEEN
Which of the following is NOT a strategy that the data analyst will use in handling missing data to enable data analysis:
A. Drop observations that have missing values
B. Estimate the missing value using other observations
C. Assign an integer that will enable the values to be processed as null values
D. Highlighting the observation with a tag
ANSWER: D

CA35P Page 4
Out of 10
QUESTION NINETEEN
You are given the following categories of data visualisation:
1. Composition
2. Distribution
3. Comparison
4. Relationship
5. Trends

Which of the following choices represents the order from simple to complex in terms of analysing data for visualisation?
A. 5,3,2,4,1
B. 4,3,2,1,5
C. 2,3,1,4,5
D. 1,5,4,3,2

ANSWER: A

QUESTION TWENTY
Which of the following data visualisation charts will likely present more than two variables over time effectively?
A. Scatter Graph
B. Bubble Chart
C. Column Chart
D. Line Chart

ANSWER: D
……………..……………………………………………………………….

CA35P Page 5
Out of 10
 CPA ADVANCED LEVEL

BUSINESS DATA ANALYTICS (PRACTICAL PAPER)

THURSDAY: 27 April 2023. Morning Paper. Time allowed: 3 hours.

Answer ALL questions in SECTION I and any THREE (3) questions in SECTION II. SECTION I has twenty (20)
Multiple Choice Questions each carrying two (2) marks. SECTION II has five (5) practical questions each carrying
twenty (20) marks.

Under SECTION II, you are required to create Ms Excel Worksheets with the name of the entity in each question and
input your workings and solutions. You may use the Excel template within the question.

SECTION I (40 MARKS)

Question One
The acronym “CRISP” stands for:
A. Cross-industry standard process for data mining
B. Cross-industry statistical process for data mining
C. Cross-industry standard practice for data mining
D. Cross-industry statistical package for data mining

Question Two
You are given the following formulas for computing variance and standard deviation of a population and sample:
1. =VAR.S( )
2. =VAR.P( )
3. =STDEV.P( )
4. =STDEV.S( )

Which of the following statements in CORRECT?

A. Statements 1 and 3 contain the formulas for variance and standard deviation of a population
B. Statements 2 and 4 contain the formulas for variance and standard deviation of a sample
C. Statements 1 and 4 contain the formulas for variance and standard deviation of a sample
D. Statements 2 and 3 contain the formulas for variance and standard deviation of a sample

Question Three
Which of the following focuses on the discovery of previously unknown properties on the data?
A. Data mining
B. Big data
C. Data wrangling
D. Data archiving

Question Four
A data analyst would like to determine the number of times revenues have exceeded Sh.10 million over the past 10 years. If
the revenues are listed vertically in column A (From Cell A2 to Cell A11) of Excel, which of the following formulas will
provide the correct output? :
A. COUNTIF(A2:A11,“=10”)
B. COUNTIF(A2:A11,“>10”)
C. COUNTIF(A2:J11, “>10”)
D. COUNTIF(“>10”, A2:A11)

CA35P Page 1
Out of 4
Question Five
“Alteryx” is an example of a____________________________.
A. Data management tool
B. Data cleaning tool
C. Data visualisation tool
D. Data analysis tool

Question Six
Which of the following approaches to data collection will require SIGNIFICANT data cleansing?
A. Online administered questionnaire
B. Email administered questionnaire
C. Physically administered questionnaire
D. All of the above

Question Seven
Which of the following function can be used to find data with unique codes arranged in the top-most row of the dataset in MS
Excel.
A. MATCH
B. HLOOKUP
C. VLOOKUP
D. SET UP

Question Eight
Which of the following reasons will make an organisation AVOID cloud computing as a means for data management?
A. Data Costs
B. Data Scalability
C. Data Integrity
D. Data Safety

Question Nine
Correlation analysis is an example of:
A. Predictive analytics
B. Prescriptive analytics
C. Descriptive analytics
D. Exploratory analytics

Question Ten
The following are the main examples of data visualisation:
1. Comparison
2. Composition
3. Relationship
4. Distribution

Which of the following summarises the order of the examples from simple to complex?
A. Distribution, comparison, composition, relationship
B. Distribution, composition, comparison, relationship
C. Comparison, composition, distribution, relationship
D. Relationship, composition, distribution, comparison

Question Eleven
One or more of the following activities is/are not from Phase 1 of Data Science Life Cycle.
A. Learning the target domain
B. Developing initial hypothesis
C. Visualise initial hypothesis
D. All of the above
CA35P Page 2
Out of 4
Question Twelve
The following statements relate to the ‘Vs’ of big data:
1. Variability is the evolving nature of data sources
2. Variability is the different types of data structures

Which of the following statements is CORRECT?

A. Only statement 1 is correct
B. Only statement 2 is correct
C. Both statements are correct
D. Both statements are wrong

Question Thirteen
The following is considered by many to be the most important language for Data Science:
A. Ruby
B. R
C. Java
D. MS Excel 2010

Question Fourteen
Which of the following choices best represents the correct flow of data models:
A. Conceptual, logical and physical
B. Physical, logical and conceptual
C. Logical, physical and conceptual
D. None of the above

Question Fifteen
Choose the correct keyword for this definition: A graphical representation of a data set:
A. Data Set
B. Investigative Cycle
C. Visualisation
D. Data Plot

Question Seven

The_____________________ data model gives the data analyst the chance to gain an overview of the system to be analysed
without being concerned with the details of how it will be analysed.

A. Conceptual
B. Logical
C. Physical
D. Rational

Question Seventeen
A bank collected data on visitors' viewing habits at the bank's website. Which technique can be best used to identify pages
commonly viewed during the same visit to the website?
A. Clustering
B. Classification
C. Association rules
D. Panel analysis

Question Eighteen
The following statements apply to data mining:
1. Predictive data mining is a type of analysis that extracts data that may be helpful in determining an outcome.
2. Description data mining is a type of analysis that informs users of that data of a given outcome.

CA35P Page 3
Out of 4
Which of the following is CORRECT?
A. Only statement 1 is true
B. Only statement 2 is true
C. Both statements 1 and 2 are true
D. Both statements are not true

Question Nineteen
Which of the following steps is performed by a data scientist after collecting the data?
A. Data integration
B. Data replication
C. Data cleansing
D. Data manipulation

Question Twenty
Which of the following best describes the work of a data architect?
A. Utilise large sets of data to gather information that meets their company’s needs
B. Work with businesses to determine the best usage of the information yielded from data
C. Develop data solutions that are optimised for performance and design applications
D. Evaluate data to reach at logical conclusions
……………..……………………………………………………………….

CA35P Page 4
Out of 4
 CPA ADVANCED LEVEL

BUSINESS DATA ANALYTICS (PRACTICAL PAPER)

WEDNESDAY: 14 December 2022. Morning Paper. Time allowed: 3 hours.

Answer ALL questions in SECTION I and any THREE (3) questions in SECTION II. SECTION I has twenty (20)
Multiple Choice Questions each carrying two (2) marks. SECTION II has five (5) practical questions each carrying
twenty (20) marks.

Under SECTION II, you are required to create Ms Excel Worksheets with the name of the entity in each question and
input your workings and solutions. You may use the Excel template within the question.

SECTION I - TOTAL 40 MARKS

Question One
Data models evolve from conceptual (that is; a quick, high-level view of the business requirement) to logical (where the
entities involved are expanded and include more detail) and finally the physical data model, which can be implemented with a
specific database provider (like Oracle and SQL Server).

Which of the following choices is correct?

A. The entire statement is true
B. Only the statement on conceptual data model is true
C. Only the statement on logical data model is true
D. Only the statement on physical data model is true (2 marks)

Question Two
Which of the following would be more appropriate to replace the question mark in the following diagram?

Machine Learning

Hacking Skill ? Mathematics and Statistics

Substantive
Research

A. Data analysis
B. Data science
C. Statistical inference
D. Predictive modelling (2 marks)

CA35P Page 1
Out of 8
Question Three
According to cross-industry standard process for data mining, data modelling involves:
A. Obtaining data and information from different sources, processing and storing for future reference
B. Fixing or removing incorrect, corrupted, incorrectly formatted data and information
C. Collecting data and information about business requirements from stakeholders and end users
D. Creating a visual representation of either a whole information system or parts of it to communicate connections
between data points and structures (2 marks)

Question Four
Read the statements below and answer the question that follows:

(i) Data mining relates to turning raw data into useful information.

(ii) Data mining using built-in algorithms should guarantee a result.

Which of the following choices apply?

A. The two statements are true
B. Only the first statement is true
C. Only the second statement is true
D. None of the statements is true (2 marks)

Question Five
Which of the following ‘Vs’ of data describes data as multifactor, unstructured and dynamic?
A. Veracity
B. Value
C. Variability
D. Variety
(2 marks)
Question Six
Which of the following is an example of discrete data?
A. Number of children
B. Height of children
C. Behaviour of children
D. Test scores of children (2 marks)

Question Seven
Ms Dare Mongare is the Chief Finance Officer of Modern Company Limited. She is using data analytics in estimating future
risks that the company is facing and also cash budgeting, with scenario analysis.
By carrying out risk management and cash budgeting, she is applying:
A. Predictive analytics for risk management and cash budgeting
B. Predictive analytics for risk management and prescriptive analytics for cash budgeting
C. Predictive analytics for cash budgeting and prescriptive analytics for risk Management
D. Prescriptive analytics for risk management and cash budgeting (2 marks)

Question Eight
Based on the principles in the Unified Ethical Frame for Big Data Analytics, which of the following applies to the principle of
Fairness?
A. Thinking through the potential impacts of our data use on all interested parties
B. Sustainability of the data over time
C. Transparency and inclusivity of the data
D. Data benefiting both the business and customers (2 marks)

Question Nine
Which of the following applications will likely NOT be used for cloud computing?
A. Azure
B. AWS
C. SQL
D. Alibaba Cl (2 marks)

CA35P Page 2
Out of 8
Question Ten
In data science, a relationship between two entities is called _______________________.
A. Binary
B. Quartenary
C. Unary
D. None of the above (2 marks)

Question Eleven
Which of the following data visualisation tools will likely present a relationship of more than two variables effectively?
A. Scatter Graph
B. Bubble Chart
C. Column Chart
D. Line Chart (2 marks)

Question Twelve
_______________________ graph displays information as a series of data points connected by straight line segments.
A. Line
B. Bar
C. Scatter
D. Histogram (2 marks)

Question Thirteen
A data breach occurs when the organisation’s data suffers a security incident resulting in a breach of confidentiality,
availability or integrity. According to the applicable data protection law, in the case of a data breach, the organisation should:
A. Notify the supervisory authority within 48 hours of the incident whether or not it poses a risk to the organisation and
affected individuals
B. Notify the supervisory authority within 48 hours of the incident, only if it poses a risk to the organisation and
affected individuals
C. Notify the supervisory authority within 72 hours of the incident whether or not it poses a risk to the organisation and
affected individuals
D. Notify the supervisory authority within 72 hours of the incident, only if it poses a risk to the organisation and
individuals (2 marks)

Question Fourteen
Data fishing is sometimes referred to as
A. Data bagging
B. Data dredging
C. Data merging
D. Data pooling (2 marks)

Question Fifteen
One of the challenges of big data is the fact that there is so much data, so many techniques and models to analyse the data and
several ways to interpret the findings and results. The data analyst should therefore be more sceptical in the following aspects
EXCEPT on the:
A. Sources of data
B. Data collection
C. Data analysis
D. Assumptions (2 marks)

Question Sixteen
Which of the following is NOT a principle of data protection as provided by the data protection laws in various countries?
A. Process data lawfully
B. Maximise data collection
C. Ensure data quality
D. Limit data processing (2 marks)

CA35P Page 3
Out of 8
Question Seventeen
Two challenges of big data and analytics is inaccessibility of data and low speed of access to data. Which one of the following
actions by an organisation will address the two challenges?
A. Providing access to all data to specified employees
B. Providing access to selected data to all employees
C. Restricting access to all data for specified employees
D. A database management system (2 marks)

Question Eighteen
Which of the following is an open source revision/version control system?
A. Numpy
B. Git
C. Scipy
D. Loft (2 marks)

Question Nineteen
Alteryx is an example of a ____________________________________________.
A. Data management tool
B. Data cleaning tool
C. Data visualisation tool
D. Data presentation tool (2 marks)

Question Twenty
Which of the following formulas in Ms Excel will provide a subtotal of variables provided in a list of vertically listed cells?

A. =sum (A1:H20)

B. =sum (A1:A20)

C. =sum (A1;H20)

D. =sum (A;A20)

SECTION II – TOTAL 60 MARKS

Question Twenty one
You are provided with the following extracts of the statement of profit or loss for Sepetuka Limited:

Sepetuka Limited
Statement of profit or loss extract for the year ended 30 September:
2019 2020 2021 2022
Year Sh.“000” Sh.“000” Sh.“000” Sh.“000”
Sales 54,000 64,800 81,000 95,580
Cost of sales (32,400) (32,400) (32,400) (38,232)
Gross profit 21,600 32,400 48,600 57,348
Operating expenses (10,800) (10,125) (21,094) (14,934)
Operating profit 10,800 22,275 27,506 42,414
Depreciation (600) (800) (750) (900)
Profit before interest and tax 10,200 21,475 26,756 41,514
Finance costs (5,000) (7,000) (9,000) (8,000)
Profit before tax 5,200 14,475 17,756 33,514
Income tax expense (1,560) (4,343) (5,327) (10,054)
Profit after tax 3,640 10,132 12,429 23,460

CA35P Page 4
Out of 8
Required:
(a) Calculate and interpret the following ratios:

(i) Annual revenue growth rates for years 2020, 2021 and 2022. (3 marks)

(ii) Three years cumulative average growth rate (CAGR) for year 2022. (3 marks)

(iii) Effective tax rate for the period 2019 to 2022. (2 marks)

(b) Now assume the following for Sepetuka Limited:

1. Revenue growth rates are forecast under three scenarios namely base case, optimistic case and pessimistic
case. The base case growth rate for the first year forecast is the 2022 CAGR. This is expected to reduce by
2% annually until the last year of the forecast subject to a minimum of 15%. The optimistic case is 20%
above the base case while the pessimistic case is 10% below the base case in all forecast periods.
2. Gross profit margin for the first year of the forecast is the 3-year average for the period from year 2020 to
year 2022. This is expected to reduce by 2% annually until the last year of the forecast subject to a
minimum of 50%.
3. Operating expense ratios are modelled as 3-year averages for the period from 2020 to 2022. These are
assumed to remain constant over the forecast period.
4. Depreciation to revenue ratio is assumed to remain constant as the 3-year average for the period 2020 to
2022.
5. Finance costs are expected to reduce steadily as the loans are repaid. Use the reduction rate in year 2022
over the forecast period.
6. Income tax expense is calculated as the historical effective tax rate.

Required:
Prepare five-year forecast statements of profit or loss for Sepetuka Limited from year 2023 to year 2027.
(12 marks)
(Total: 20 marks)

Question Twenty two

Mrs Jane Wakwa is the Marketing Director of Vuma Limited, a company that makes and sells electronic devices.

The company is considering the launch of a new mobile phone model branded “Trex”. The available data is not fully reliable
though Jane still feels that she can make a recommendation on whether or not to launch “Trex”.

Additional information:
1. Trex is estimated to have a shelf life of five years commencing year 2023.
2. Trex will require the purchase of a machine at a cost of Sh.100 million at the end of year 2022, after which the
machine will be sold for Sh.20 million at the end of the fifth year.
3. The selling price and cost structures of Trex (for the first year 2023) with expected inflation factors are as follows:

Sh. Inflation rate (%) - from year 2024 onwards

(Per unit)
Selling price 5,000 2%
Material costs 2,000 4%
Direct labour costs 1,000 5%
Incremental fixed cost (excludes depreciation) 500 10%
4. The company is eligible for capital allowances (depreciation for tax purposes) at the rate of 25% on reducing
balance.
5. At the end of the project when the machine is sold, any gain or loss on disposal will be considered for tax.
6. The tax rate on income and capital allowances is at the rate of 30% per annum. Assume that the tax for a given
period is paid in the same year.
7. The project will require an initial investment in working capital of Sh.20 million which will be increasing by Sh.5
million at the end of each year to cater for general inflation. The whole amount together with the periodic increase
will, however, revert at the end of the project.
8. Experience has shown that demand for new products is not exactly known in year one but tends to be stable
thereafter. Jane has come up with the following estimates of demand for year 2023.

CA35P Page 5
Out of 8
 Probability Expected sales (Units)
30% 40,000
40% 30,000
30% 10,000
Jane expects an initial increase in demand in year 2024 of 25% then a decline of 50% in year 2025. This level will
remain the same till the end of the project.
9. Vuma Limited has a real weighted average cost of capital (WACC) of 8% and general inflation is expected to be at
4%.
Due to the risk of the project, Jane feels that the relevant nominal WACC should be increased by 3%.

Required:
Compute the following:

(a) The weighted average cost of capital to be used to evaluate the project. (2 marks)

(b) The relevant cash flows over the project period. (15 marks)

(c) The net present value (NPV) of the project. Advise on the viability of the project. (3 marks)
(Total: 20 marks)

Question Twenty three

You are evaluating a four-year project with an initial investment of Sh.10,000,000 on 1 January 2023 and the following cash
flow characteristics:

Date Cash flow (Sh.)

1 January 2023 (10,000,000)

30 June 2023 2,750,000

31 July 2024 4,250,000

30 September 2025 3,250,000

31 December 2026 2,750,000

The discount rate is given as 8%.

Required:
(a) (i) Calculate the NPV and XNPV of the project and hence determine whether the project is viable. (6 marks)

(ii) Highlighting the cause of the difference between NPV and XNPV, explain which one you would use in your
analysis and why. (4 marks)

(b) (i) Calculate the IRR and XIRR of the project and hence determine whether the project is viable. (6 marks)

(ii) Highlighting the cause of the difference between IRR and XIRR, explain which one you would use in your
analysis and why. (4 marks)
(Total: 20 marks)

CA35P Page 6
Out of 8
Question Twenty four
Bamuda Limited presented the following financial statements for the years ended 30 June 2021 and 30 June 2022:
Statement of profit or loss for the year ended 30 June 2022:
Sh.“million” Sh.“million”
Revenue 473
Cost of sales (229)
Gross profit 244
Gain on financial assets at fair value 5
Investment income 6
255
Other expenses
Administration expenses 48
Distribution costs 76
Finance costs 17 (141)
Profit before tax 114
Income tax expense (47)
Profit after tax for the year 67
Statement of financial position as at 30 June:
Sh.“million” Sh.“million”
Assets: 2022 2021
Non-current assets:
Property, plant and equipment 327 264
Intangible assets 40 50
Financial assets through other comprehensive income (OCI) 22 10
389 324
Current assets:
Inventory 123 176
Trade receivables 95 87
Financial assets at fair value 65 30
Cash and cash equivalents 29 312 0 293
Total assets 701 617
Equity and liabilities:
Equity:
Ordinary share capital (Sh.10 each) 230 150
Share premium 30 0
Revaluation reserve 36 67
Finacial assets through OCI - equity reserve 2 0
Retained profits 121 91
419 308
Non-current liabilities:
10% convertible loan stock 100 150
Current liabilities:
Bank overdraft 22
Trade payables 156 100
Interest payable 7 3
Income tax payable 19 182 34 159
Total liabilities 282 309
Total equity and liabilities 701 617

Additional information:
1. Property, plant and equipment held by Bamuda Limited are items of plant and equipment and freehold premises.
During the year ended 30 June 2022, items of plant and equipment which originally cost Sh.40 million were
disposed of resulting in a loss of Sh. 6 million charged in administrative expenses. These items had a net book value
of Sh.28 million as at the date of disposal.
2. Depreciation charge for the year ended 30 June 2022 was Sh.43 million.

CA35P Page 7
Out of 8
3. Sh.50 million of convertible loan stock was converted to Sh.50 million ordinary share capital at par during the year
ended 30 June 2022.

Required:
Prepare the statement of cash flows for Bamuda Limited for the year ended 30 June 2022 as per IAS 7 “Statement of Cash
Flows”.
(Total 20 marks)

Question Twenty five

Farmgate Company Limited produces and sells shovels.

The company provides the following data for quantities of shovels produced and the related production cost for the calendar
year 2021:

Month Quantity Production cost

(year 2021) produced (units) Sh.
January 150,000 18,000,000
February 120,000 14,000,000
March 200,000 23,000,000
April 170,000 19,000,000
May 120,000 16,000,000
June 250,000 30,000,000
July 220,000 27,000,000
August 90,000 11,000,000
September 180,000 24,000,000
October 300,000 32,000,000
November 280,000 29,000,000
December 350,000 36,000,000

Required:
(a) Determine the variable cost per unit and the total variable costs using regression analysis. (6 marks)

(b) Estimate the total production cost if the following number of units are produced:

(i) 100,000 units

(ii) 150,000 units

(iii) 200,000 units

Include the lower and upper boundaries at 95% confidence intervals.

(12 marks)

(c) Prepare a chart plotting the predicted Y versus the actual Y from the regression function determined in (a) above.
Interpret your answer. (2 marks)
(Total 20 marks)
………………………………………………………………..

CA35P Page 8
Out of 8
 CPA ADVANCED LEVEL

BUSINESS DATA ANALYTICS (PRACTICAL PAPER)

PILOT PAPER
December 2022. Time allowed: 3 hours.

Answer ALL questions. This paper has TWO sections. SECTION I has twenty (20) Multiple Choice Questions of two
(2) marks each. SECTION II has three (3) practical questions of twenty (20) marks each.

Under SECTION II, you are required to create Ms Excel Worksheets with the name of the entity in each question and
input your workings and solutions.

SECTION I – TOTAL 40 MARKS

Question One
Which of the following choices provides the correct definition of a data model?
A. A visual representation of data objects
B. An organisation of data objects
C. A conceptual representation of data objects
D. A graphical representation of data objects (2 marks)

Question Two
The Cross Industry Standard Process for Data Mining (CRISP) requires a data analyst to understand the business as the first
step. Which of the following components does NOT form part of this activity?
A. Specific goals and requirements for data mining
B. An overview of the available data and their quality
C. Inventory and resources available
D. Cost benefit analysis (2 marks)

Question Three
Which of the following is the most common goal of statistical modelling?
A. Inference
B. Descriptive analysis
C. Sub-setting
D. Risk analysis (2 marks)

Question Four
A collection of interesting and useful patterns in database is called ______________________.
A. Data Set
B. Information
C. Knowledge
D. Analytics (2 marks)

Question Five
Which of the following is included in a data cleaning report?
A. Data structure
B. Data content
C. Data cleaning activities
D. Data models (2 marks)

CA35P Page 1
Out of 6
Question Six
Which of the following short-key functions will an analyst use in excel to paste contents into a cell?
A. Control + F
B. Control + V
C. Control + C
D. Control + U (2 marks)

Question Seven
The following statements relate to the formula for computing the standard deviation in Ms Excel:
(i) STDEV.P = Computes the standard deviation of an entire sample
(ii) STDEV.S = Computes the standard deviation of an entire sample
(iii) STDEVA = Computes the standard deviation of a selected sample

Which of the following choices is correct?

A. Statements (i) and (ii) are correct
B. Statements (i) and (iii) are correct
C. Statements (ii) and (iii) are correct
D. All the statements are correct (2 marks)

Question Eight
Which one is not an array function in Ms Excel?
A. MMULT
B. TRANSPOSE
C. VLOOKUP
D. None of the above (2 marks)

Question Nine
____________________ is the basic data structure that can be thought of in an SQL table or a spreadsheet data representation.
A. Series
B. List
C. Dataframe
D. Points (2 marks)

Question Ten
Which of the following components does NOT fall within the realm of “Velocity” in big data?
A. Processes
B. Streams
C. Real-Time
D. Terabytes (2 marks)

Question Eleven
Which of the following ‘Vs’ of data provides for data as being authentic, trustworthy and original?
A. Veracity
B. Value
C. Variability
D. Variety (2 marks)

Question Twelve
The following statements relate to the definition of the types of data analytics:
(i) Descriptive analytics provide historical data and information
(ii) Prescriptive analytics provide data and information for decision making
(iii) Predictive analytics provide data and information to explain deviation from expected

Which of the following is the correct answer?

A. Only statement (i) is correct
B. Only statement (ii) is correct
C. Only statement (iii) is correct
D. Only statements (i) and (ii) are correct (2 marks)

CA35P Page 2
Out of 6
Question Thirteen
Which one ranks highest among the data analytics tools?
A. Prescriptive analytics
B. Predictive analytics
C. Descriptive analytics
D. Summative analytics (2 marks)

Question Fourteen
Which of the following is NOT a data cleaning strategy?
A. Removing incorrect data
B. Removing duplicate data
C. Fixing data with structural errors
D. Filling in for missing data (2 marks)

Question Fifteen
Which of the following software will a data analyst use to clean data?
A. Data Stage
B. SQL
C. Tableu
D. Microstrategy (2 marks)

Question Sixteen
The following activities apply to data visualisation:
1. The format
2. The content
3. The structure
4. The purpose

Which of the following is the correct order of the activities?

A. 3,4,2 and 1
B. 4,3,1 and 2
C. 3,2,4, and 1
D. 4, 2,3 and 1 (2 marks)

Question Seventeen
Which of the following graph will likely present better a relationship between variables in data visualisation?
A. Exploded Pie Chart
B. Stacked Bar Chart
C. Progress Line graph
D. Radar Chart (2 marks)

Question Eighteen
Which of the following correctly defines composition as a data visualisation technique?
A. The method of graphical representation of data and information
B. The method that shows the differences or similarities between values, with and without axes
C. The method of presenting a part-to-whole relationship of data and information
D. The method that shows relationships and connections between the data and information (2 marks)

Question Nineteen
Which of the following people in an organisation will LEAST likely be involved in implementing the data protection laws in
a country?
A. Chief Risk Officer
B. Chief Legal Officer
C. Chief Information Officer
D. Chief Executive Officer (2 marks)

CA35P Page 3
Out of 6
Question Twenty
Under the data protection laws, organisations will have to take steps to demonstrate they know the data they hold, where it is
stored, and who it is shared with. This is referred to as:
A. Data Portability
B. Data Inventory
C. Data Traceability
D. Data Management (2 marks)
SECTION II – TOTAL 60 MARKS
Question Twenty One
Amani Pharmaceuticals Limited is a mid-sized firm exploring prospects of future growth. The management of the company
has prepared the statement of profit or loss for the year ended 30 June 2022 with forecasts of expected growth rates in the
various line items for the next three years.

This information is presented below:

Amani Pharmaceuticals Limited
Statement of profit or loss for the year ended 30 June 2022:
Growth Rates: Scenario
Worst Base Best
Sh."000" % % %
Revenue 4,500.00 2 5 10
Cost of goods sold (3,200.00) 2 5 10
Gross Profit 1,300.00
Other incomes - Investment income 15.00 2 3 4
Total Income 1,315.00
Administration expenses (210.00) 5 5 5
Distribution expenses (210.00) 2 5 10
Earnings before interest, tax, depreciation and amortisation 895.00
Depreciation and amortisation (150.00) 5 10 10
Earnings before interest and tax 745.00
Interest expense (120.00) 10 10 10
Earnings before tax 625.00
Income tax expense (160.00)
Profit after tax (for the period) 465.00
Dividends paid (280.00) 10.00 10.00 10.00
Retained Profit for the year 185.00
Retained profit b/f 550.00
Retained Profit c/f 735.00
Total equity 2,200.00
Total assets 4,500.00 5% 10% 10%
Additional information:
1. Assume a corporation tax rate of 30%.
2. The growth in equity is only attributable to changes in retained profits.
Hint: In applying the growth rates, ignore changes in opening and closing balances.
3. Total equity will grow only as a result of retained profits.
Required:
(a) Prepare a spreadsheet showing the forecast statement of profit or loss for the next three years under each of the three
scenarios. (10 marks)
(b) Compute the following metrics for evaluating performance under each scenario:
(i) Net profit margin. (2 marks)
(ii) Return on assets. (2 marks)
(iii) Return on equity. (2 marks)

(c) Present a summarised dash board with suitable graphs to highlight the revenues and net profit under each scenario.
(4 marks)
(Total: 20 marks)

CA35P Page 4
Out of 6
Question Twenty Two
You are provided with the following extracts of the statement of profit or loss and statement of financial position for Darubini
Limited for the years ended 30 June 2020, 2021 and 2022:

Darubini Limited
Statement of profit or loss extract for the year ended 30 June (figures in Sh."000"):
2020 2021 2022
Sales 54,000 64,800 81,000
Cost of sales (32,400) (32,400) (32,400)
Gross profit 21,600 32,400 48,600
Operating expenses (10,800) (10,125) (21,094)
Operating profit 10,800 22,275 27,506
Depreciation (600) (800) (750)
Profit before interest and tax 10,200 21,475 26,756
Finance costs (5,000) (7,000) (9,000)
Profit before tax 5,200 14,475 17,756
Income tax expense (1,560) (4,343) (5,327)
Net profit 3,640 10,133 12,429
Statement of financial position:
Assets:
Non-current assets:
Property, plant and equipment 25,800 45,200 46,700
Current assets:
Inventory 15,000 21,750 27,488
Receivables 4,500 8,750 15,460
Cash and cash equivalents 0 0 3,823
Total current assets 19,500 30,500 46,771
Total assets 45,300 75,700 93,471
Equity and Liabilities:
Long-term liabilities:
Long term borrowings 33,333 46,667 60,000
Current liabilities:
Accounts payable 3,750 6,658 7,989
Bank overdraft 5,297 9,322 0
Sub-total 9,047 15,980 7,989
Equity:
Paid up capital 10,000 10,000 10,000
Retained earnings (7,080) 3,053 15,482
Total equity 2,920 13,053 25,482
Total equity and liabilities 45,300 75,700 93,471

Required:
(a) Prepare the statement of cash flows for the company for the two years ended 30 June 2021 and 30 June 2022.
(8 marks)
(b) Calculate and comment on the following key ratios:
(i) Revenue growth rates for the years ended 30 June 2021 and 30 June 2022. (2 marks)

(ii) Two years’ cumulative average revenue growth rate for the year ended 30 June 2022. (2 marks)

(iii) Return on equity (ROE) for each of the three years. Discuss your results. (2 marks)

(c) Using the two-years cumulative average revenue growth rate calculated in (b) (ii) above, prepare a one year forecast
of the statement of profit or loss for the year ending 30 June 2023. Assume that the vertical ratios for year ended 30
June 2022 apply for the 2023 forecast except that depreciation and finance costs remain constant. Tax is assumed to
be at 30%. (6 marks)
(Total: 20 marks)

CA35P Page 5
Out of 6
Question Twenty Three
(a) You are a financial management consultant in an investment firm. A potential client requests you to analyse an
investment with the following features:

• The cost of the investment is Sh.10,000,000.

• The investment pays out a sum of Sh.“X” at the end of the first year; this payout grows at the rate of
10 percent per year for 11 years.

Required:
(i) If your discount rate is 15%, calculate the minimum value of “X” that should attract the investor to make the
investment. (3 marks)

(ii) The respective “NPVs” of the investment if the discount rates were to range between 10% and 15%.
(3 marks)
(iii) Assume that you have three project scenarios as outlined below:

Scenario Discount rate Initial cost Starting cash flow Growth in initial cash flow
Sh. Sh.
Scenario 1 15% 10,000,000 1,500,000 10%
Scenario 2 10% 15,000,000 2,000,000 8%
Scenario 3 13% 20,000,000 4,000,000 7%

Prepare detailed outcomes of the project under each of the above scenarios. (8 marks)

(b) Assume that an investor takes an investment loan of Sh.150,000,000. The loan is for 48 months at an annual interest
rate of 15 percent (which the bank translates to a monthly rate of 15%/12 = 1.25%). The payments are to be made at
the end of each of the next 48 months.

Required:
(i) Calculate the monthly payment on the loan. (2 marks)

(ii) Assume that you have the following options to negotiate with the bank:

Option Annual interest rate (%) Term

Option 1 15 48 months
Option 2 18 60 months
Option 3 13 36 months

Use a two-way data table to determine which option would be the most favourable to the investor.
(4 marks)
(Total: 20 marks)
……………………………………………………………………………

CA35P Page 6
Out of 6