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CPA Business Data Analytics – August 2026 Past Paper & Answers

Unit: Business Data Analytics

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Questions

Download CPA Business Data Analytics August 2026 past paper with detailed answers and marking scheme. This paper is based on KASNEB examination standards and is ideal for revision and exam preparation.

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Other Business Data Analytics Past Papers

1
​​A senior accountant is reviewing a complex forecasting workbook with many linked formulas. Before presenting the model to the finance director, she wants to quickly identify all cells containing formulas so that she can check whether hard-coded figures have been entered in calculation areas. Which one of the following MS Excel approaches
should she use?

A. Press Ctrl + H and replace all numeric values with formulas
B. Use Go To Special and select Formulas
C. Use Data Validation to restrict entries to formulas only
D. Use Text to Columns to separate formula cells from value cells
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2
​​A regional retail chain has 50,000 sales records containing branch, product category, sales representative, customer type and revenue. The commercial manager wants to analyse revenue by branch and product category, filter by customer type and rearrange the report during a management meeting. Which one of the following MS Excel tools
is MOST appropriate?

A. Pivot table
B. Data validation
C. Flash Fill
D. Goal Seek
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3
​​A financial analyst has built an MS Excel valuation model for a logistics company. The final enterprise value changes based on the discount rate and terminal growth rate. The board wants a grid showing enterprise value under several combinations of the two assumptions. Which one of the following MS Excel tools should the analyst use?

A. One-way sorting
B. Two-variable data table
C. Remove duplicates
D. Subtotal
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4
​​A company maintains a product master table with product codes, standard costs and product categories. A costing model should return the standard cost for a product code entered by the user. The finance team also wants the formula to remain readable and reduce errors when product rows are rearranged. Which one of the following formula
approaches is BEST?

A. Use XLOOKUP based on the product code
B. Use SUM to add all standard costs
C. Use COUNTBLANK to detect missing product codes
D. Use ROUND to simplify the product cost
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5
​​A bank wants to reduce loan defaults. Before analysing customer data, the project team meets credit managers to define what 'default' means, agree on acceptable model accuracy, identify business decisions supported by the analysis and set project success criteria. Which one of the following cross-industry standard process for data mining
(CRISP-DM) phase is being performed?

A. Data preparation
B. Business understanding
C. Deployment
D. Modelling
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6
​​An insurance company has archived customer claim records that are beyond the statutory retention period. The records have no current analytical value and increase exposure to data protection risk. Management approves secure deletion of the records. Which one of the following stages of the data lifecycle is involved?

A. Identifying data sources
B. Recording data
C. Removing data
D. Modelling data requirements 
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7
​​A retail bank develops a customer-churn model that reports 96% accuracy on the same dataset used to build it. The model has not been tested on new data, and the project team recommends immediate deployment. Which action BEST demonstrates appropriate professional scepticism?

A. Deploy the model because an accuracy rate above 90% is sufficient evidence of reliability
B. Request independent validation using unseen data and investigate possible data leakage before deployment
C. Replace the model with a more complex algorithm without conducting further testing
D. Reduce the reported accuracy so that stakeholders develop more realistic expectations 
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8
​​A telecommunications company receives millions of call records per hour, customer complaints from social media,network sensor logs and mobile money payment records. The analytics team is concerned that the data comes in many formats and from many sources. Which one of the following Big Data characteristic is the team mainly
addressing?

A. Volume
B. Variety
C. Velocity
D. Value
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9
​​A supermarket chain analyses three years of sales data to forecast next month's demand for fast-moving products.The results will guide procurement quantities and reduce stock-outs. Which one of the following types of analytics is being applied?

A. Descriptive analytics
B. Predictive analytics
C. Diagnostic analytics
D. Data visualisation
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10
​​A transport company uses an optimisation model that recommends the lowest-cost delivery routes after considering fuel costs, driver availability, delivery deadlines and vehicle capacity. Which one of the following analytics approaches is MOST applicable?

A. Descriptive analytics
B. Prescriptive analytics
C. Data cleaning
D. Common size analysis 
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11
​​A financial institution needs to combine customer files from a core banking system, mobile banking platform and credit reference bureau. The data contains duplicate customer IDs, inconsistent date formats and missing values before it can be loaded into a reporting database. Which one of the following tool categories is MOST suitable?

A. Data cleaning and ETL tools such as Alteryx or SSIS
B. Presentation tools such as PowerPoint
C. Drawing tools such as Paint
D. Word processing tools such as MS Word 
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12
​​An auditor has two database tables: one containing purchase orders and another containing supplier invoices. Both tables contain a purchase order number. The auditor wants to create a combined dataset showing ordered quantities,invoiced quantities and price differences. Which one of the following SQL operations should be used?

A. JOIN
B. FORMAT
C. PROTECT
D. ROUND 
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13
​​A finance manager wants to show how total operating expenses are split among staff costs, rent, utilities, marketing and depreciation for the current year. Which one of the following data visualisation type is MOST appropriate?

A. Composition visualisation
B. Relationship visualisation
C. Distribution visualisation
D. Geographic visualisation 
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14
​​A chief finance officer (CFO) will review a dashboard during a 15-minute board meeting. The dashboard includes revenue growth, gross margin, liquidity, debt ratio and forecast cash shortfalls. The CFO asks that the dashboard should support quick decision-making and avoid misleading visual emphasis. Which one of the following design
principles is MOST appropriate?

A. Use many colours to make all charts stand out equally
B. Present key indicators clearly, accurately and concisely
C. Remove all labels to reduce visual clutter
D. Use 3D charts to make financial information appear modern 
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15
​​A company's revenue has grown by 18%, but profit after tax has grown by only 3%. Management asks the analyst to determine whether the decline in performance is due to rising cost of sales, operating expenses or finance costs as a proportion of revenue. Which analytical technique is MOST suitable?

A. Common size statement analysis
B. Quality of earnings analysis
C. Ratio analysis
D. Cross sectional analysis 
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16
​​A finance team prepares three forecast statements of profit or loss for a manufacturing company: base case,optimistic case and downside case. Each forecast uses different assumptions for sales growth, material inflation and exchange rates. Which one of the following analytical method is being applied?

A. Scenario analysis
B. Ratio analysis
C. Comparative analysis
D. Simulation analysis 
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17
​​A company is evaluating a five-year investment project. The analyst has projected annual cash flows and must determine whether the project will add value after considering the required rate of return of the project. Which one of the following project appraisal measure is MOST appropriate as the primary decision criterion?

A. Net Present Value
B. Internal rate of return
C. Discounted Payback period
D. Accounting rate of return
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18
​​An analytics team is preparing a dataset containing customers’ identification numbers and transaction histories.
Which of the following controls would MOST directly support data protection?

(i) Pseudonymising customer identifiers before analysis.
(ii) Applying role-based access controls to the dataset.
(iii) Retaining all extracted data indefinitely in case it becomes useful.
(iv) Encrypting data while stored and while being transmitted.

A. (i) and (ii) only
B. (i), (ii) and (iv) only
C. (ii), (iii) and (iv) only
D. (i), (ii), (iii) and (iv)
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19
​​A data analyst discovers that an unauthorised person may have accessed a protected analytics dataset. Which sequence of actions is MOST appropriate?

(i) Preserve relevant evidence and record what is known about the incident.
(ii) Contain the exposure by restricting compromised access where authorised to do so.
(iii) Report the incident through the organisation’s approved security and data-protection channels.
(iv) Support assessment, notification and corrective action in accordance with applicable procedures.

A. (i), (ii), (iii), (iv)
B. (ii), (iv), (i), (iii)
C. (iii), (i), (iv), (ii)
D. (iv), (iii), (ii), (i)
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20
​​A county treasury dashboard compares actual own-source revenue with budgeted revenue by stream, shows monthly collection trends and highlights revenue streams with adverse variances exceeding 10%. The county executive committee uses the dashboard to prioritise enforcement and collection actions. Which one of the following business
data analytics application is being demonstrated?

A. Public revenue analysis and budget variance reporting
B. Loan amortisation modelling
C. Product cost estimation using high-low method
D. Conceptual data modelling
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21
​ ​ ​ ​​Maki Agro-Processors Ltd. manufactures edible oils and animal feed for the East Africa market. The finance director has requested you to analyse the company’s recent financial performance and prepare a forecast for the year ending 31 December 2026 using Excel.

The following financial extracts relate to Maki Agro-Processors Ltd. for the years ended 31 December 2023, 2024 and 2025.

Statement of profit or loss extracts
202320242025
ItemSh.“000”Sh.“000”Sh.“000”
Revenue420,000486,000558,900
Cost of sales-273,000-315,900-363,285
Gross profit147,000170,100195,615
Distribution costs-31,500-38,880-47,507
Administrative expenses-42,000-46,170-53,096
Depreciation-18,000-21,000-24,000
Finance costs-12,000-15,600-18,720
Profit before tax43,50048,45052,292
Income tax expense-13,050-14,535-15,688
Profit after tax30,45033,91536,604
Dividends paid-12,000-13,500-15,000





2023

2024

2025
ItemSh.“000”Sh.“000”Sh.“000”
Property, plant and equipment210,000252,000300,000
Inventory58,80070,87586,520
Trade receivables63,00081,000105,000
Cash and cash equivalents12,6008,50514,900
Total assets344,400412,380506,420
Ordinary share capital90,00090,00090,000
Retained earnings61,50081,915103,519
Long-term borrowings120,000150,000195,000
Trade payables52,50068,04086,401
Bank overdraft20,40022,42531,500
Total equity and liabilities344,400412,380506,420

Forecast driverBase case
Revenue growth14%
Cost of sales as a percentage of revenuesame as 2025
Distribution costs growth16%
Administrative expenses growth10%
DepreciationSh.27,000,000
Finance costsSh.21,000,000
Corporate tax rate30%
Dividend payout40% of profit after tax
Inventory dayssame as 2025
Receivable dayssame as 2025
Payable dayssame as 2025
Capital expenditure during 2026Sh.60,000,000

Required
(a)Using Excel formulas, prepare a common-size statement of profit or loss for the three years ended 31 December 2023, 2024 and 2025.
(b)Compute the following ratios for each of the three years and briefly interpret the trend:

(i) Gross profit margin.

(ii) Net profit margin.

(iii) Current ratio.

(iv) Debt-to-equity ratio.

(v) Return on assets.

(vi) Return on equity.
c)(Prepare a forecast statement of profit or loss and statement of financial position extracts for the year ending 31 December 2026 using the assumptions provided.
(d)Perform a sensitivity analysis showing the effect on 2026 profit after tax if revenue growth changes to 8%, 12%, 14%, 18% remain and 22%, while all other assumptions remain unchanged.
(e)Prepare a dashboard showing at least four visualisations, including revenue trend, profit margin trend, leverage position and 2026 sensitivity results. State two business insights arising from your dashboard.
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22
​ ​ ​ ​ ​​Venus Logistics Ltd. is considering investing in a fleet-routing automation system to reduce fuel costs, improve delivery scheduling and enhance customer service. Management requires an Excel-based investment appraisal model before approving the project.

The proposed system will require an initial investment on 1 January 2026 as follows:

Cost itemAmount
Sh.“000”
Software licence36,000
Vehicle tracking devices24,000
Staff training6,000
Installation and integration costs9,000
Initial working capital8,000

The project is expected to run for five years. Annual operating cash flow estimates are as follows:

YearDelivery cost
savings
Sh.“000”		Additional service
 revenue
Sh.“000”		Maintenance
cost
Sh.“000”		Data hosting
cost
Sh.“000”
122,0006,500-3600-2400
225,5007,800-4100-2640
329,0009,300-4700-2904
431,50010,000-5300-3194
534,00010,800-5900-3513

Additional information:
1.   The equipment will have a residual value of Sh.12,000,000 at the end of year 5
2.   Working capital will be fully recovered at the end of year 5.
3.   The company’s base discount rate is 13%.
4.   Corporate tax effects should be ignored.
5.   Management uses NPV, IRR, discounted payback period and profitability index for investment decisions.

The company is also considering borrowing Sh.50,000,000 to finance part of the investment. The loan would be repayable in equal monthly instalments over 48  months at an annual interest rate of 15%.

Required:
(a)   Prepare the project’s annual net cash flows from year 0 to year 5.
(b)   Using Excel functions, compute:
       (i)    Net present value (NPV).
       (ii)   Internal rate of return (IRR).
       (iii)  Profitability index (PI).
       (iv)  Discounted payback period.
(c)   Advise management whether the project should be accepted, giving reasons based on the results in part (b).
(d)   Prepare a loan amortisation schedule for the first 12 months showing opening balance, monthly instalment, interest, principal repayment and closing balance.
(e)   Use a two-way data table to show the project’s NPV under the following assumptions:
       
Discount rate10%12%13%15%17%
Annual cash flow factor90%100%110%120%130%

(f)   (i)    Prepare a visual dashboard showing annual project cash flows, cumulative discounted cash flows and the sensitivity table output. 
       (ii)    State TWO financial management insight from the dashboard in (f)(i) above.
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23
​ ​ ​ ​​Ujenzi Tiles Ltd. manufactures ceramic floor tiles. The production manager wants to understand cost behaviour, prepare a flexible budget and evaluate the effect of changes in selling price and variable cost on profitability.

Monthly production and cost data

MonthUnits producedTotal production cost
Sh.“000”
January18,00015,600
February20,00016,800
March22,00018,000
April19,00016,200
May25,00019,500
June28,00021,600
July26,00020,700
August30,00023,100

Budget information

ItemAmount
Selling price per unitSh.1,250
Direct material per unitSh.420
Direct labour per unitSh.210
Variable overhead per unitSh.160
Fixed production overhead per monthTo be estimated
Fixed selling and administration cost per monthSh.3,600,000
Budgeted monthly sales volume27,000 units

Actual results for July 2026 were as follows:

ItemActual
Units sold29,000
Selling price per unitSh.1,220
Direct material costSh.12,760,000
Direct labour costSh.6,235,000
Variable overhead costSh.4,785,000
Fixed production overheadSh.5,400,000
Fixed selling and administration costSh.3,750,000

Required:
(a)   Estimate the fixed production cost and variable production cost per unit using the high-low method.
(b)   Using Excel regression tools or formulas, estimate the fixed production cost and variable production cost per unit. Briefly compare the regression result with the high-low result.
(c)   Compute the contribution per unit, break-even point in units and break-even sales revenue using the budget information.
(d)   Prepare a flexible budget for July 2026 based on actual sales volume and compute the following variances:
       (i)    Sales price variance.
       (ii)   Direct material cost variance.
       (iii)  Direct labour cost variance.
       (iv)  Variable overhead variance.
       (v)   Fixed overhead variance.
(e)   Prepare a sensitivity table showing the effect on monthly profit if selling price changes by -5%, 0%, +5% and +10%, while variable cost per unit changes by -3%, 0%, +3% and +6%.
(f)   Prepare a dashboard highlighting break-even point, actual profit, key variances and sensitivity results.
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24
​ ​​Zambezi began a  business for buying and selling electronic  appliances. He is registered for Value added Tax (VAT). 

Details for the month of July 2026 are as follows:

1.Sales
Sh."000"
Standard Rate8,000.00
Zero Rated1,550.00
Exempt1,200.00
2.Customers for the sales at standard rate are offered a 5% discount if they settle within the same month. Usually 50% of the customers take the offer.
3.Cash Purchases
Sh."000"
Standard Rate4,500.00
Exempt1,500.00
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, Zambezi paid rent for the business premises for the month of March. This is Sh.300,000 per month.
6.The business reported actual credit losses of Sh.700,000 and another expected credit loss of Sh. 125,000.
7.A supplier from whom the business had made purchases of Sh.730,000 and a customer to whom goods were sold at standard rate in July and still owed Sh.875,000 were declared bankrupt.
8.At the end of every month, Zambezi prepays the electricity for the following month using prepaid meter tokens, based on standard usage. He paid Sh.126,250 for November, but she had prepaid Sh.120,000 for October.
9.Other expenses paid during the month:
Sh."000"
Telephone45.00
Audit fee (Including VAT)362.00
Stationary130.00
10.Zambezi made donations to registered charities consisting of Sh. 250,000 in cash and sh.800,000 in form of goods.
11.Closing Inventory for the month was valued at Sh.340,000

NOTE: All transactions quoted at standard rate of 16% unless stated otherwise. 

Required:
The Value Added Tax (VAT)Payable/Refundable for the month of July 2026. 

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25
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​​The Internal Audit Unit of Capricon County Health Department is reviewing procurement and payment transactions for medical supplies.       
 The county uses separate procurement, stores and payment modules.

 The auditor wants to perform analytics to identify possible duplicate payments, unmatched transactions, unusual approvals and segregation of duties conflicts.

Purchase orders

PO_NoPO_DateSupplierID
ItemCodeQuantityOrderedUnitPriceRaisedByApprovedBy
PO10102/03/2026S01M1005001,200UserAUserD
PO10202/05/2026S02M1013002,800UserBUserE
PO10302/07/2026S03M102800450UserCUserD
PO10402/10/2026S01M1032003,500UserAUserA
PO10502/12/2026S04M104600900UserBUserE
PO10614/02/2026S05M1051008,000UserCUserF

Goods received notes

GRN_NoGRN_DatePO_NoQuantityReceivedReceivedBy
GRN20102/06/2026PO101500UserG
GRN20202/09/2026PO102280UserH
GRN20302/12/2026PO103800UserG
GRN20415/02/2026PO104200UserA
GRN20517/02/2026PO105590UserH
GRN20619/02/2026PO106100UserG

Supplier invoices and payments

InvoiceNoInvoiceDateSupplierIDPO_NoQuantityInvoicedInvoiceAmountPaymentNoPaymentDatePaidAmountProcessedBy
INV30102/07/2026S01PO101500600,000PAY40115/02/2026600,000UserJ
INV30202/10/2026S02PO102300840,000PAY40218/02/2026840,000UserK
INV30314/02/2026S03PO103800360,000PAY40320/02/2026360,000UserJ
INV30416/02/2026S01PO104200700,000PAY40421/02/2026700,000
UserA
INV30518/02/2026S04PO105600540,000PAY40524/02/2026540,000UserK
INV30518/02/2026S04PO105600540,000PAY40625/02/2026540,000UserK
INV30620/02/2026S05PO106100800,000PAY40726/02/2026800,000UserJ

Supplier master table

SupplierIDSupplierNameTaxPINSupplierStatus
S01MedEquip Africa Ltd.P051111111AApproved
S02Lifeline Supplies Ltd.P052222222BApproved
S03Afya DistributorsP053333333CApproved
S04County Pharma DepotP054444444DApproved
S05Rapid Diagnostics Ltd.P055555555EWatchlist

Required:
(a)Perform a three-way match between purchase orders, goods received notes and supplier invoices. Identify exceptions relating to quantity ordered, quantity received and quantity invoiced.
(b)Identify possible duplicate invoices or duplicate payments and explain the basis for flagging them.
(c)Test for segregation of duties conflicts by identifying transactions where the same user performed incompatible roles such as raising, approving, receiving or processing payment.
(d)Compute supplier-level expenditure and classify each supplier as high, medium or low risk using the following criteria:
Risk classificationCriteria
High riskWatchlist supplier or duplicate payment or segregation conflict
Medium riskQuantity mismatch or invoice exceeds received quantity
Low riskNo exception noted
(e)Select an audit sample of three transactions for detailed testing using a risk-based approach and justify your selection.
(f)Prepare an audit analytics dashboard showing exception counts, supplier risk classification, duplicate payments and total expenditure by supplier. 
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