Part (d) for 6 marks required three substantive procedures each to confirm the valuation of inventory and the completeness of provisions or contingent liabilities.

Performance was mixed for this question; candidates were generally able to provide adequate substantive procedures for provisions or contingent liabilities. However candidates are reminded that procedures such as;

• obtain management representations, 
• discuss with management, or 
• read board minutes

are only likely to score ½ mark unless there is an explanation of what the management representation should contain, what the management discussions should cover, or what the minutes are being reviewed for.

Substantive procedures must be sufficiently detailed otherwise at best only ½ marks rather than 1 mark can be obtained.

The requirement to consider valuation of inventory, which is a topic which is regularly examined, was on the whole inadequately answered. Candidates seemed to ignore the requirement to consider valuation and often structured their answers with headings such as existence or rights and obligations. Clearly many failed to read the question properly. In addition despite substantive procedures being required, many started with a definition of net realisable value, this scored no marks.