Part (d) for 4 marks required an explanation of the kind of assurance that could be provided to the bank in relation to the cash flow forecast. It was pleasing to see that a significant proportion of candidates were able to correctly identify that negative assurance would be provided to the bank, and to state what this meant.

However not many were able to explain why negative assurance was to be provided and incorrectly thought that this was because the company was experiencing cash flow difficulties or that it was because there was not much time available to undertake the work and hence a negative assurance would be provided.

Only some candidates were able to explain that it was due to the nature of forecasts being future information and hence reasonable assurance not being a practical option.