Part (b) for 3 marks required an explanation of how the new internal audit (IA) department of Bush-Baby could assist the directors in preventing and detecting fraud and error. Performance was mixed on this question.

Most candidates were able to gain a mark by suggesting controls that IA could help to develop and monitor to prevent fraud and error. However answers needed to be broader and rather than focusing in excessive detail on internal controls, candidates needed to give more of a general outline in how IA could help, such as fraud investigations.