Part (ai) for 5 marks required a description of the steps the firm should take prior to accepting a new audit client Cinnamon Brothers Co (Cinnamon). Candidates performed satisfactorily on this part of the question. Many candidates were able to identify a good range of points including ensuring the firm had adequate resources to complete this audit, identifying if any ethical threats arise, understanding the entity and contacting the previous auditors.

However some candidates focused solely on obtaining professional clearance from the previous auditors and it was not uncommon to see a whole page on the detailed steps to be taken. The question requirement was steps prior to accepting an audit; it was not the process for obtaining professional clearance.

Those that focused solely on this area would not have scored enough marks to pass this part of the question. Candidates are reminded to answer the question actually asked as opposed to the one they wish had been asked.

In addition, some candidates provided answers which focused on the engagement letter; this was incorrect as an engagement letter is only produced once an engagement has been accepted as opposed to prior to acceptance.