This question was for 28 marks, and was split into three requirements. The scenario was based on the completion of a group audit, and candidates were given draft consolidated financial statements and a selection of key audit findings, based on the audit work that had already been performed.

Requirement (ai) was for four marks and asked for an explanation of why auditors need to reassess materiality as the audit progresses. This was linked to a part of the scenario where it was explained that the materiality level applied to the audit of the Group has been reduced.

Answers were usually limited here to a definition of materiality and a suggestion of how an appropriate materiality figure is determined, and few answers actually answered the question requirement. Those that did tended to focus on risk assessment and the auditor uncovering new information about the client as the audit progresses. These points are both valid, but very few answers discussed them, or any other relevant points, in sufficient detail.