Part (a) for 4 marks required candidates to define “tests of control” and “substantive procedures” as well as provide an example for each relevant to the audit of wages and salaries.

Candidates’ performance was mixed on this question. Many candidates were able to adequately define tests of controls but did not define substantive procedures as well, the definitions were often incomplete. This is a core area of the syllabus and it is disappointing that candidates are unable to provide clear definitions of procedures that are frequently examined.

The requirement to provide examples of each type of procedure was answered unsatisfactorily by a significant proportion of candidates. Rather than giving tests of control many candidates provided example controls, these would not have scored any marks. The substantive procedures examples given were often vague and some candidates were confused in that they gave tests of controls here rather than substantive tests.

As has been noted in previous examiner’s reports candidates are often confused with the differences between tests of controls and substantive tests. Both are methods for obtaining evidence and are key elements of the F8 syllabus. Future candidates must ensure that they understand when tests of controls are required and when substantive procedures are needed. They need to learn the difference between them and should practice questions requiring the generation of both types of procedures.