This question was marginally the most popular of the optional questions. Requirement (a) focussed on tendering, and provided information in relation to a potential new audit client – a multinational, newly listed group requiring a cost effective audit to a tight deadline. The requirement, for eight marks, was to identify and explain the matters to be included in the tender document.

This was generally well attempted, with a significant minority of answers achieving close to full marks. The best answers went through each of the typical contents of a tender document and related them specifically to the Group in the question, resulting in focussed and well explained answer points.

Interestingly these answers were often relatively brief, but still managed to attract a high mark through application of knowledge to the question scenario. The more common areas discussed were the international network, audit specialism, fees and deadline, and the introduction of key members of the potential audit team.

Some answers tended to either be much too brief - sometimes little more than a list of bullet points, or did not answer the question requirement, and instead of explaining matters to be included in a tender document, discussed the matters that may impact client acceptance, such as whether the audit firm has sufficient resources, and whether a fee dependency would be created. Candidates are advised to read question requirements carefully and not to make assumptions about what is being asked for.