Part (bii) for 5 marks required substantive procedures for an issue on trade receivables circularisations with regards to non-responses and responses with differences. Performance on this question was also unsatisfactory.

As above, candidates failed to identify the specific issue from the scenario and instead provided a general list of receivables tests. Some candidates failed to recognise that analytical review procedures were unlikely to be of any benefit as Rose’s receivables had changed significantly on the prior year due to a change in the business model.

Also Rose was a leisure club and so provided services rather than goods; however candidates still recommended “reviewing goods despatch notes for cut off”. This again demonstrates that candidates are learning generic lists of procedures and just writing them into their answers with little thought or application to the scenario. This approach will score very few if any marks at all.