Part (c) for 4 marks presented difficulties for most candidates. The question provided a completeness test over non-current assets and candidates were asked to explain why this was not a good test for completeness and to state an alternative.

Many candidates choose to criticise the test because the auditor had used a representative sample, and so they suggested that all non-current assets should be tested. This demonstrates a lack of understanding of the principles of sampling and of the aim of audit procedures.

In addition a significant proportion criticised the test as they stated that it was not a good test for existence. The requirement of the question was for completeness and not existence, yet many candidates wrote at length about the need for existence tests.

As already stated candidates must take the time to read the question requirements carefully. The confusion over existence versus completeness also demonstrates a lack of understanding of the financial statement assertions and this is unsatisfactory.

Where candidates had read the question carefully and understood assertions, they were able to provide some good alternative completeness procedures such as ‘selecting a sample of non-current assets on the shop floor and tracing back to inclusion in the non-current assets register’.