June 2015 question 5

You have to read the first part of this requirements as: "Discuss the implications ... on the completion of the audit AND on the auditor’s report". At the completion stage the auditor is assessing whether there is sufficient appropriate audit evidence on which to base the audit opinion. The marks are only broken down by "matter" and not between implications and further actions - which generally suggests 50:50 split. So, for example, the matter of the highway construction is worth 6 marks - so you should be looking for 3 marks for implications and 3 marks for further action - but the marking will be flexible - so you could get 4 marks for implications and only 2 for further action. The things you are looking for are materiality (assess it), sufficiency of evidence (further action could be to obtain more), relevant accounting treatment and reporting implications (not just opinion but also EoM or other matters).