Question 2a i
Marking Guide

Matters to be considered in agreeing the terms of the engagement

Up to 1½ marks for each matter identified and explained (2 marks maximum for identification):

– Management’s responsibilities
– Intended use of the information and report
– The contents of the business plan 
– The period covered by the forecasts
– The nature of assumptions used in the forecasts
– The format and planned content of the assurance report

Maximum marks 6