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Hi Kim hope u are well.
am really struggling the marking schemes of Risk question. I can’t figure how many risks to write.
”Up to 3 marks for each significant risk of material misstatement evaluated unless otherwise indicated”. does this include the materialitlity.
suppose 24 marks on risk question, how many risks are required in order to acheive full mark.
From the most recent marking scheme:
Up to 3 marks for each audit risk evaluated (unless indicated otherwise).
In ADDITION, ½ mark for relevant trends or calculations which form part of the evaluation of audit risk (max 3 marks).
Materiality calculations should be awarded 1 mark each (max 4 marks).Materiality is not a risk so these marks are also in addition.
So, theoretically:
24 – max 4 for materiality – max 3 trends/calculation leaves 17 marks that could be awarded for risks – so 5 x 3-mark risks and 1 x 2-mark risk = 6 risks in total.I recommend you download the latest examiner’s report as it is the most detailed yet in explaining the examiner’s expectations https://www.accaglobal.com/pk/en/student/exam-support-resources/professional-exams-study-resources/p7/examiners-reports1.html
For example, on page 5:
“An issue that arises repeatedly is candidates attempting to find 12 risks for a 24-mark question and conducting little or no in-depth analysis of any of them. This will not be able to attain a pass mark. This means some of the risks stated in these answers will be speculative or not significant and, therefore, will not obtain credit.”As it goes on to explain “The requirement asks only for significant audit risks …”
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