Doubts in previous question papers

Recurring means happening more than once; secondment is the fee for seconding a member of staff to work for the client. Self-interest threats arise if recurring fees form one client >15% of total fees. System documentation = how the auditor documents, ie records, the client's internal control system (could also be how the client documents their own system). NRV can be below cost if an item is unsaleable. Inventory should be valued at the lower of cost and NRV. Provision = a liability of uncertain timing or amount. An allowance is not the same. The two terms might be used with respect to doubtful debts. An allowance for doubtful debts (ie a write-down) is the proper term. The June 2009 exam Q4 answer seems badly worded. The audit committee would help both the internal and external auditors to get their points across. No real difference between scrap and NRV. They are both amounts obtained form the sale of a non-current asset.