Question 3a
Marking Guide
fir co | |
| generally 1 mark per matter/evidence point explained: | |
| matters: | |
| – whether a present obligation exists | |
| – assumptions used in estimate are complex/subjective | |
| – investigate why provision fallen in value | |
| – ias 37 disclosure requirements not met | |
| – ias 1 disclosure requirements not met | |
| – potential misstatement due to insufficient disclosure | |
| evidence: | |
| – supporting documentation regarding existence of obligation | |
| – assess whether assumptions in line with business understanding/other evidence | |
| – discuss assumptions and estimation method with management | |
| – review supporting documentation (operating licence/government agreement) | |
| – assess controls in place | |
| – written representation | |
| – review of draft notes to financial statements | |
| maximum marks | 8 |