This was the least popular of the Section B questions. The question concentrated on audit reports, and also included a requirement in relation to a current issue.

Requirement (a), for eight marks, asked candidates to explain the suggestions made by the IAASB in respect of additional disclosures in the auditor’s report regarding going concern status, and to discuss the benefits of such disclosures. This requirement was based on the IAASB’s Invitation to Comment on Improving the Auditor’s Report, an examinable document, and about which there had been a relevant article published for the benefit of candidates on ACCA’s website.

It was clear that many candidates who attempted this question had read the article and understood the main proposals, and marks were awarded for this knowledge. However, very few candidates made any attempt to discuss the proposals, as requested, which limited the marks that could be awarded. Some candidates had little awareness of the IAASB’s Invitation to Comment, and instead gave an answer that simply outlined the existing requirements in relation to the auditor’s responsibility in respect of going concern.

The UK and IRL adapted papers contained a slightly different requirement (a), because the IAASB Invitation to Comment is not an examinable document for the UK and Irish candidates. The requirement was more general, asking for a discussion of whether including specific disclosures on going concern would improve the quality and usefulness of the auditor’s report. Answers here tended to be good, with a real attempt made to properly discuss the issues and to reach an opinion and justified conclusion on the topic.