(ii)  Procedures

Up to 1 mark for each adequately explained procedure. Award ½ mark for relevant procedures which are poorly explained.
 –  Analytically review historic sales to customer
 –  Enquire of management about further repercussions
 –  Analytically review sales by customer to identify other major ones
 –  Review trade contracts/agreements with other major customers
 –  Inspect correspondence with major customers
 –  Identify inventories produced specifically for customer
 –  Inspect forecasts to ensure adequate adjustment made
 –  Inspect terms of gifted land
 –  Enquire of legal adviser re. impact of restrictions
 –  Seek a valuation from an expert
 –  Identify potential options for land
 –  Prepare revised forecast excluding land

Maximum marks  6