This 20-mark question was based on a listed company Serena VDW Co and tested candidates’ knowledge of corporate governance and auditor’s responsibilities with regard to client confidentiality.

Part (a) for 3 marks required an explanation of corporate governance and why it is important. This question was unrelated to the scenario, was knowledge based and candidates performed well.

Many candidates were able to provide a definition of corporate governance and suggest a reason as to why it is important. This was sufficient to score a pass on this requirement. A small minority of candidates wrote far too much on this part of the question even though it only had a maximum of 3 marks available. Candidates need to consider the mark allocation when allocating time and effort in answering questions.