This 30-mark question was based on a publisher and producer of poetry books and tested candidates’ ability to cope with a number of areas including inventory, royalty charges and sales statistics. There was also a stand- alone sub requirement in relation to audit planning.

Part (a) for 6 marks required candidates to explain the importance of audit planning and to state two matters to be included in an audit plan.

Most candidates performed well on this part of question 1. There were 4 of the 6 marks available for the importance of audit planning and most were able to provide answers of identification of audit risk, ensuring an efficient and effective audit and helping to select appropriate team members.

The second part of the question required matters to be in included in an audit plan and again many answered this well with points such as materiality and audit procedures to address the risks identified.

A number of candidates did provide a combined answer with their points to be included in an audit plan given when they were covering the importance of audit planning. Candidates are reminded that using headings and subheadings can help to provide a more focused answer. Where the two headings were used importance of planning and matters to be included in an audit plan, the answers tended to score well as it helped to focus the answers and reduce repetition of points.

A significant number of candidates provided substantially more than the two matters which were required.

Whilst it is understandable that candidates wish to ensure that they maximise their marks, providing an excessive number of points when only two are required leads to time pressure and a loss of marks elsewhere in the exam.