Part (b) for 8 marks required an identification of going concern indicators for Medimade Co and a description of why these indicators could impact upon going concern.

Generally candidates scored well in the identification of going concern indicators for Medimade Co, a small minority of candidates did not relate their answers to the scenario and instead produced a standard list of indicators.

The requirement to then describe the impact upon going concern was more problematic for candidates, as many answers just stated “this will lead to going concern problems” as opposed to explaining why there would be an impact on going concern.

Therefore although the marking allocation was to give ½ mark for an indicator and up to 1 mark for the explanation of the impact, few candidates scored 1½ marks for their points. However, due to the considerable number of going concern issues in the scenario, many candidates did score well in this question.