Part (b) for 2 marks required 4 matters the auditor should consider in obtaining an understanding of the entity.

This was unrelated to the scenario and was a knowledge based question. In general candidates performed satisfactorily. Where candidates did not score full marks this was because they focused on such areas as people they would speak to, or procedures to obtain information such as “reviewing the company’s website”.

They should instead have focused on the areas/matters of the company that the auditor wished to gain an understanding on, such as its industry, regulatory framework or customer base.