Part (b) for 8 marks required substantive procedures the auditor should perform on year-end receivables. This was answered well by many candidates. Candidates were able to provide variety in their procedures including both tests of detail and analytical review tests. The most common mistakes made by some candidates were:

• Providing tests of control rather than substantive procedures. 
• Providing substantive procedures for revenue rather than receivables. 
• Not generating enough tests for 8 marks; it is 1 mark per valid procedure. 
• Describing the process for a receivables circularisation at length. This was not part of the question requirement.

The requirement verb was to “describe” therefore sufficient detail was required to score the 1 mark available per test. Candidates are reminded that substantive procedures are a core topic area and they must be able to produce relevant detailed procedures.

Answers such as “confirm credit notes are recorded in the correct period” are far too vague as it does not explain how to gain comfort that credit notes are recorded correctly. In addition answers such as “ensure cut- off of receivables is correct” are objectives rather than substantive procedures.