Requirement (b) was for six marks, and asked for a discussion of the advantages and disadvantages of a joint audit being performed on a newly acquired subsidiary. Most candidates could identify at least two advantages and two disadvantages, though often they were not discussed at all and the answer amounted to little more than a list of bullet points, which would not have attracted many marks.

ome answers seemed to confuse a joint audit with an audit involving component auditors, and some used the fact that the foreign audit firm was a small firm to argue that it could not possibly be competent enough to perform an audit or have a good ethical standing.

Most answers identified the cost implications for the client, and the advantage of involving a local firm who would have knowledge of the local law and regulations.