Banbury Co

– Provision of valuation service creates self-review and self-interest threats to objectivity
– Service cannot be provided if the pension deficit is material
– Calculate and comment on materiality in 2013 financial statements
– Other matters to consider including level of subjectivity, lack of informed management (1 mark each)
– Safeguards may be used to reduce threat to acceptable level (1 mark each)

Maximum marks 6