Candidates were required to explain why the control environment may be weak in the charity in the question scenario.

The question was worth 4 marks. 4 points would therefore obtain the 4 marks on offer. The aim of the question was to try and get candidates to think about the bigger “control environment” issues within the entity. The relatively low mark allocation was to recognise that the question was actually quite difficult as candidates are more used to looking for detailed control weaknesses (see question 1b in this paper).

Common errors included:

• Re-stating points from part (b) as also relevant to part (c). For example, suggesting that cash collection tins should be sealed donations could be recorded incorrectly.
• Omitting the question completely from the candidate’s answer.

The standard of answers for this question was inadequate. In any similar question in the future, candidates are recommended to “think big”, that is to see the larger picture of the control system rather than the detailed points such as lack of cash receipts which relate more to control components.