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Sir whenever they are financial statements in audit risk question and small paragraphs given in the question; u r expected to calculate ratios and assess the risk; now my issue is that i always in those questions feel the pressure to use the ratio somehow to justify my point even though i might only want to answer from other paragraphs in the story;
Basically how should we tackle those sort of questions?
If information is given in the question from which materiality (and other ratios) can be calculated … why do you think the examiner has included that information?
It’s there to be used
So use it
Get this concept firmly into your head … there are very few words within a P7 question that are wasted by the examiner
As you are reading through the scenario with your highlighter pen in hand you need to be constantly aware that any (and probably all) sentences within that question have something in them that could sensibly be used to make a markable point
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