Question 2 - Set up

In this lesson

1. 0:00 Understanding Question Two Structure
2. 0:35 Requirement A1: Wrongful and Fraudulent Trading
3. 2:03 Evaluating Aaron's Liability Under UK Law
4. 4:01 Requirement A2: Integrity and Ethical Assessment
5. 5:23 Requirement B: Cash Flow Forecast Review
6. 7:02 Evaluating Assumptions and Completeness
7. 9:01 Using Commercial Acumen and Business Judgment
8. 11:04 Case Setup: Aaron's Business and Situation
9. 14:01 Red Flags: Cash Flow Pressures and Integrity Concerns
10. 16:37 Ethical Threats and Appointment Considerations
11. 20:14 Time Management and Exam Technique
12. 22:08 Demonstrating Professional Skills Throughout

About this lesson

The first requirement asks you to describe the processes for wrongful and fraudulent trading, then evaluate whether the client could be held liable for either offence. This is specific to the UK variant of the exam. You'll learn how to extract relevant facts from the case scenario, apply them to the legal definitions, and build evaluation points that demonstrate your professional judgement and scepticism. The second requirement focuses on integrity and ethical values—you'll see how to identify red flags in the client's behaviour and discuss whether they should be accepted as a client. This section emphasises reading the examiner's notes carefully to avoid discussing irrelevant matters like client identification procedures. The third requirement typically covers other types of assurance work, such as reviewing cash flow forecasts. You'll learn how to evaluate management's assumptions, challenge those that seem unreasonable, and identify what might be missing from the forecast using both the case information and your commercial acumen. The lesson walks you through the specific cash flow provided, showing you how to spot inconsistencies and apply practical business sense to your analysis. Throughout, you'll see how to manage your time across all three requirements—allocating roughly 2.2 minutes per mark—and how to write points that naturally demonstrate evaluation, scepticism, judgement and commercial acumen without forcing it. The key is thinking as you write, not working on autopilot, and ensuring every point is explained fully rather than left as a bare statement.

Duration: 24m