Question 2a ii
Marking Guide
Audit implications
Generally up to 1½ marks for each implication assessed and 1 mark for each impact on the financial
statements identified:
Legal claim:
– Immaterial individually but material to profit when combined with inventory adjustment
– Financial statements materially misstated when two issues combined – implication for opinion
– Suitability of verbal representation as source of evidence
– Recommended procedures (1 mark each)