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.
This is based on which year question? why can't I assume +/-10% of point estimate as low/high range and evaluate RMAD from there?
I believe this relates to Practice Exam 1 created by BattleActs - there's no year associated with it. With the limited info given in this problem, I probably would make an assumption like you described. The key is to very clearly state any assumptions you made in order for them to give you as many points as possible.