This 20-mark question was based on Bluesberry hospital and tested candidates’ knowledge of value for money, strengths of an operating environment and substantive procedures for property, plant and equipment.

Part (a) for 4 marks required an explanation of the purpose of a value for money audit. Candidates performed satisfactorily on this part of the question. Many candidates were able to score three of the available four marks by defining the 3Es of economy, efficiency and effectiveness. However some confused their explanations giving an explanation of effectiveness for efficiency.

The final mark for a general explanation of what a value for money audit actually means was often not considered by candidates. In addition a significant minority of candidates misunderstood the question and referred to ensuring value for money for an external audit.