Part (c) for 6 marks required three items of evidence and an explanation of how they might enable the auditor to assess the likelihood of the claim succeeding. Many candidates had a reasonable attempt at the question and were able to identify three items of evidence, such as a letter from the lawyer, board minutes, discussions with management or management representation. However some candidates failed to explain how these items of evidence would help in the assessment of the claim.

In addition a minority suggested items of evidence that would not help the auditor in making an assessment of the claim, such as what the claimant ate, or his/her till receipt, or discussions with the kitchen staff that worked on the day in question. Candidates need to remember that the auditor is not the lawyer and is only interested in whether the claim requires a provision or disclosure in the financial statements.