Question 5i
Marking Guide
Fire at warehouse
Audit procedures. 5 marks for fire 1 per well-explained point.
discuss the matter with the directors | 1 |
| letter of representation point | 1 |
| schedule of inventory destroyed – reasonable? | 1 |
| insurance | 1 |
| going concern status of company | 1 |
| other relevant points (each) | 1 |
| maximum marks | 4 |
Batch of cheese
Audit procedures 5 marks for fire 1 per well-explained point.
discuss with directors | 1 |
| copy of damages claim | 1 |
| legal advice | 1 |
| press reports (or other third party) on cheese | 1 |
| going concern? | 1 |
| other relevant points (each) | 1 |
| maximummarks | 4 |