Requirement (aii) for eight marks asked for examination procedures to be used in respect of the forecast statement of profit or loss, assuming the engagement is accepted. This was also quite well attempted by many candidates, who used the information provided to generate specific and relevant enquiries and other procedures.

Weaker answers tended to write very vague comments which were not tailored to the scenario or explained, or were just incorrect, such as. “obtain representations”, “agree forecast to audited financial statements”, “check whether assumptions are realistic”, “perform analytical procedures”.