This 20-mark question was based on audit firm Kiwi & Co (Kiwi) and tested candidates’ knowledge of analytical procedures, going concern and audit reports.

Part (a) for 3 marks required an explanation of the three stages of an audit when analytical procedures can be used. Performance was satisfactory on this question.

Many candidates were able to correctly identify three stages when analytical procedures could be used as planning or risk assessment stage, substantive testing stage and final review or completion stage. They were then often able to explain how analytical procedures could be used at one of these stages, usually the planning stage; some candidates struggled with how they could be used at the substantive testing and final review stages.

Some candidates ignored the stages of the audit and instead just explained what analytical procedures were. In addition some candidates discussed the three stages of an audit and what an auditor does at each stage with no reference to analytical procedures; this may have been due to a failure to read the question properly.