This 20-mark question was based on Donald Co, which operated an airline business. The question tested the areas of risk identification and procedures for obtaining evidence.

Part (ai) for 5 marks required five procedures, other than external confirmation, for obtaining evidence and then part (aii) for 5 marks required an example of each procedure relevant to the audit of purchases and expenses.

This question was unrelated to the scenario and was knowledge based, and candidates performed satisfactorily.

Where candidates did not score full marks this was because they failed to read the question properly. The scenario clearly excluded the procedure of external confirmation, however, a significant minority of candidates gave confirmations as a procedure. This scored no marks. Some saw the word “confirmation” and then proceeded to provide a lengthy answer only relating to this procedure. Candidates must read the question carefully.

In addition some candidates confused procedures for obtaining evidence with financial statement assertions and so gave answers which focused on completeness, valuation and existence. A number of candidates provided example procedures which were not related to purchases and expenses, but instead focused on inventory, payables or non-current assets. Again this was due to a failure to read the question requirement.