Question 1 - Set up

In this lesson

1. 0:00 Question one setup and marking structure
2. 0:27 Understanding the 50 marks breakdown
3. 1:04 Professional marks and how to earn them
4. 3:23 Reading the partner's email requirements
5. 4:15 Setting materiality on revenue criteria
6. 6:03 Part A: Evaluating business risks
7. 8:11 Part B: Identifying risks of material misstatement
8. 14:40 Part C: Designing audit procedures
9. 16:37 Part D: Discussing ethical issues
10. 17:23 Understanding the group structure and exhibits
11. 23:40 Exhibit four: Store enhancement program analysis
12. 26:50 Part D ethical issues and exhibit five
13. 30:42 Time management and exam allocation strategy

About this lesson

This video walks you through the structure of question one—50 marks split across four requirements (A to D) plus 10 professional marks for communication, judgement, and business acumen—and shows you exactly what the examiner expects from each part. You'll discover how to allocate your time effectively across the exam, understand the materiality criteria you'll need to apply, and learn the marking patterns for each requirement so you can write the right amount of depth without wasting time. The video breaks down each requirement in detail. Part A tests your ability to identify and evaluate business risks—expect to discuss around five risks with two marks each, demonstrating your professional scepticism and commercial acumen. Part B focuses on risks of material misstatement, where you'll prioritise your findings and likely earn three marks per risk discussed, with bonus marks available for calculating supporting ratios or trends. Part C asks you to design seven audit procedures tailored to the specific scenario—one sentence per procedure, and the quality of your selection matters as much as the quantity. Part D covers ethical issues and recommended actions, where you'll again earn marks for demonstrating judgement and scepticism. You'll also get a practical walkthrough of the exhibits and how to read them strategically. The key is to spend your initial 15 minutes reading and thinking deeply about what the company actually does, what the information reveals, and how different pieces link together. This thinking time pays dividends when you're selecting which risks to prioritise and which procedures to recommend. The video emphasises that professional marks aren't earned for doing extra work—they're earned by using excellent exam technique within each requirement: clear communication, logical structure, justified judgement, and business-focused analysis. Finally, you'll learn the time allocation formula: 2.2 minutes per mark across the 180 minutes available after your initial reading time. This ensures you spend enough time on question one (which has more to read and think about than questions two and three combined) while leaving yourself time to complete the full exam. The focus throughout is on working smarter, not harder—using the information the examiner gives you, avoiding generic procedures or made-up scenarios, and demonstrating the professional skills that earn those crucial 10 marks.

Duration: 36m