Q22 part c
The solution provides an incredibly in depth explanation. When the exam says "fully explain" is it really looking for something that detailed?
I basically just said because the carried reserves + materiality standard is within the AA's estimated reasonable range of reserves then there is RMAD present. I could see the need for a few more points about it but the solution for this was multiple paragraphs.
Comments
No, you wouldn't need to give such a long answer for 0.75 points. You generally have to provide one "thing" for each 0.25 points a question is worth. The solution I provided was just to give a comprehensive solution to that type of problem. For a specific exam question however you would pick and choose which things are most appropriate for that specific question.