Question 4c
Examiners Report
Requirement (c) was for 6 marks, and described the situation in which a listed client company had asked the audit firm to perform an actuarial valuation of its pension plan. The audit firm had an appropriately qualified person to perform the work, and as with the other requirements of this question, on the whole this was well attempted.
Some answers failed to correctly calculate the materiality of the pension plan to the financial statements, and in some answers the fact that the client was a listed entity was not considered. However most candidates suggested an appropriate course of action in response to the ethical matters identified.