Confusing answers.

Hello sir,
I am confusing with following questions can you help me on this?
1. Are the answer for the following two question same?
i. Describe the factors to consider and steps Brown & Co should take, prior to placing reliance on the work of the independent expert, in order to confirm raw material quantities.
( ref: Dec 2013 Q5b)

ii. Explain the factors Puffin & Co should consider when placing reliance on the work of the independent valuer.
(ref: Dec 2014 Q6a)

Note: By refer to ACCA suggested answers for question (i) they used ISA 620 Using the Work of an Auditor’s Expert to answered the question but for question (ii) they used ISA 500 Audit Evidence.

I am wrong if I using ISA 620 Using the Work of an Auditor’s Expert to answered question (ii) ? Will I gain some marks? I am Dec 2014 sitting.

2. This is regarding audit risk’s question.
Eagle has experienced increased competition and as a result, in order to maintain its current levels of sales, it has decreased the selling price of its products significantly since September 2014. (ref: Dec 2014 Q2)

Following are my answer.
Audit Risk: As Eagle has experienced increased competition, there is a risk that management might feel under pressure to manipulate the results through the judgments taken or though the use of provision.

Audit Response: Throughout the audit, the team will need to be alert to this risk and maintain professional scepticism. They will need to carefully review judgmental decision and compare treatment against prior year. In addition, a written representation should be obtained from management confirming the basis of any significant judgments.

Note: ACCA suggested answers link this point to going concern difficulties.

Audit Risk: In order to maintain its current levels of sales, it has decreased the selling price of its products significantly since September 2014. IAS 2 inventories request inventories should be valued at the lower of cost or NRV. As NRV is estimated selling price minus cost to sell and complete. As Eagle decresed the selling price, the NRV may be lower than the cost. If management do not adjust inventories to the lower of cost or NRV, inventories could be overvalued.

Audit Response: Detailed cost and NRV testing to be performed and the aged inventory report to be reviewed to assess whether inventory requires writing down.

Audit Risk: Surprised to see a significant fall in administration expenses.There is a risk that administration expense may have been omitted or included in other classes of expenses rather than administration expenses.

Audit Response: The classification between expenses will be compared with the prior tear to ensure consistency.

Thank you for takes your time!