• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Paper 1 and 2 approach on exam day

B

Benoy Soman

Member
Hi guys,

I was hoping to get your thoughts on the below and if you agree?

For Paper 1, I know that we should update our audit trail as we work through our model. But should we attempt to do the modelling for all the calculation steps, different scenarios and graphs before updating the audit trail for these sections? Or alternatively is it more ideal for e.g. to set up the calcs for Scenario 1 and then update the audit trail, do same for Scenario 2 then audit trail etc..

Generally the approach I take for Paper 1 is:

1. Read all material incl Qs
2. Write intro in audit trail
3. Do data checks, then update audit trail for Data section
4. Update audit trail for assumptions section
5. Do each calculation/scenario step and graph in the order asked, updating the audit trail as I work through each of them.

For Paper 2, the order in approach I take is:

1. Read all Qs, background material and understand the model alongside the audit trail provided

2. Update Summary for Overview section

3. Update Summary for Data section

4. Update Summary for Assumptions section

5. Update Summary for Approach Section

6. Update Summary for Results and incl. graphs that we've been asked to produce

7. Update Summary for Conclusions

8. Update Summary for Next Steps - I try to do this throughout from the start, as some of these are generic.

Sorry for the long post!
Appreciate your help!
 
I agree with your approach.

For the Audit Trail I think this time I will start documenting the 'giveaways' like Overview/Objective/Purpose/Background (by the way, what's the best name to call this introductory section? it varies so often in the past paper solutions!), Data, Assumptions, Parameters, then move to the modelling and go 'back and forth' between the model and the audit trail, updating as I go along.

It's easy to get stuck under the 'pressure' that is exam conditions on the modelling section and not leave enough time for the documentation part of it.

As for the Summary Report, I've been advised by a couple markers that even if one is running out of time to complete the model, one should at least try to include plenty Next Steps (about 15 or so) since this section is worth a good bit of the marks available..... so YES, Next Steps should be something to start documenting from the very start! I agree 100%. Many times the assumptions are a big 'giveaway' to what next steps can be given... since the I realise the assumptions are the caveats/ limitations placed on the model....
 
I agree with your approach and also figured out that this method would work best.
 
Hello Benoy,

For Paper 1
Allocate time at the beginning of the exam for:
– reading and understanding the paper;
– planning the model;
– creating the model itself; and
– maintaining the audit trail (perhaps in sections).
A possible split is:
– Reading – 15 minutes.
– Planning – 30 minutes.
– Modelling – 1.5 hours.
– Audit trail – 1 hour.

For Paper 2
Allocate time for:
– reading and understanding the paper;
– planning the spreadsheet work required;
– doing this work; and
– writing the summary.

A possible split is:
– Reading – 15 minutes.
– Working through the model and planning the extra work – 30 minutes.
– Spreadsheet work – 30 minutes.
– Summary – 2 hours.

Paper 1

For the model in Paper 1

Read the question very carefully to ensure you know what is being asked. Note the results required and plan your approach well.
It is recommend you spend about 45 minutes on reading and planning before you start your model. Keep your model simple and show all the calculations. Do not spend too long working with the data (unless this is clearly indicated in the question)
but make sure that you do some basic checks. Do not get too involved in the detail of the model. If you get stuck, make a reasonable assumption, document it, and move on. Include adequate signposting and labelling in your model and audit trail so that the work on each sheet is clear, and references are provided. Be alert for checks you can apply. Test output frequently for accuracy and reasonableness – as you would do at work – and document these checks. If an answer does not look reasonable, check your formulae against the question. If you cannot find the error, note it in your audit trail and move on. Remember: CP2 is not about determining the ‘right’ answer.

For the audit trail in Paper 1
Make your audit trail as comprehensive as you can, making sure that you cover:
– all steps in your methods;
– the assumptions; and
– the reasons for your decisions. Include your checks – auto-checks and reasonableness checks on the various scenarios. Highlight any areas where special care needs to be taken, e.g. where a Goal Seek has been used. Keep in mind the requirements of your two audiences:
– a fellow student: and
– a senior actuary.

Paper 2
For the spreadsheet work in Paper 2 Read the question very carefully to ensure you know what has been modelled and the additional work which is required. Note the results required and plan your approach. It is recommended you spend about 30 minutes on working through the model and
planning the additional work before you start work on the spreadsheet. Keep your spreadsheet work simple and show all the calculations. Do not get too involved in the detail of the model. If you get stuck, make a reasonable assumption, document it in your summary, and move on. Be alert for checks you can apply. Test your output for accuracy and reasonableness – as you would do at work – and use the results of the reasonableness checks in your summary. If an answer does not look reasonable, check your formulae against the question. If you cannot find the error, note it in your summary. Remember: CP2 is not about determining the ‘right’ answer. You will not be required to add to the audit trail provided for this paper, but your summary will
need to cover the whole project in the question, not just the additional work you have carried
out.

For the summary in Paper 2
Focus on using the summary as a communication to your audience, a senior actuary. Include the approaches you have used for the whole project, not just for the additional work you have carried out. Give sufficient and accurate details of these (and the data) so that a senior actuary could check your methods and assumptions (however they do not need to be able to check your Excel spreadsheet using this document). Do not simply ‘copy and paste’ the text given to you in the audit, but amend the content to be appropriate to a senior actuary. Have consideration of the purpose of the Summary document and the target audience. For example, the Summary document is not intended to be used to help check the model, therefore Excel references are inappropriate. Candidates who copy large sections of the information in the exam question and/or the audit trail provided into their Summary document are likely to gain very little credit from the examiners for this. Follow the instructions in the question carefully. In particular, ensure you include all the results which have been requested for the whole project. You need to include any added value comments that explain the results you have obtained and conclusions on the results, and any comments that follow from the reasonableness checks. You also should include a comprehensive set of possible next steps.

Ps: If i were you, i would go in the order the exam paper questions' are scheduled. Completing the model and then doing the relevant sections. For example, doing 'Next Steps' first might not well get you clear the idea in your head. Whereas if you have already written methodology, talked about the results and conclusion, it might be well in your head what further work could have been done (that's my personal p.o.v). The whole point of to be able to do the assignment and report in 3 hours 15 minutes is to plan your work.
 
Last edited:
Yup... straight out the CP2 notes! lol I'm not sure how practical that 'possible split' is though... but OK.
Have these methods worked for you?
 
Yes straight out the notes because they are written by those people who correct the papers and know the weakness of those who failed.

Yes, it worked for me. I have not obtained the same solution as the Mock Exams, but i balanced my time as how it is recommended. It worked out. That's why time management is important. Just try the time split and do a past paper, you'll see how far you'll attempt great rather without time management . Good luck for the exam.
 
Dar_Shan0209 said:
Hello Benoy,

For Paper 1
Allocate time at the beginning of the exam for:
– reading and understanding the paper;
– planning the model;
– creating the model itself; and
– maintaining the audit trail (perhaps in sections).
A possible split is:
– Reading – 15 minutes.
– Planning – 30 minutes.
– Modelling – 1.5 hours.
– Audit trail – 1 hour.

For Paper 2
Allocate time for:
– reading and understanding the paper;
– planning the spreadsheet work required;
– doing this work; and
– writing the summary.

A possible split is:
– Reading – 15 minutes.
– Working through the model and planning the extra work – 30 minutes.
– Spreadsheet work – 30 minutes.
– Summary – 2 hours.

Paper 1

For the model in Paper 1

Read the question very carefully to ensure you know what is being asked. Note the results required and plan your approach well.
It is recommend you spend about 45 minutes on reading and planning before you start your model. Keep your model simple and show all the calculations. Do not spend too long working with the data (unless this is clearly indicated in the question)
but make sure that you do some basic checks. Do not get too involved in the detail of the model. If you get stuck, make a reasonable assumption, document it, and move on. Include adequate signposting and labelling in your model and audit trail so that the work on each sheet is clear, and references are provided. Be alert for checks you can apply. Test output frequently for accuracy and reasonableness – as you would do at work – and document these checks. If an answer does not look reasonable, check your formulae against the question. If you cannot find the error, note it in your audit trail and move on. Remember: CP2 is not about determining the ‘right’ answer.

For the audit trail in Paper 1
Make your audit trail as comprehensive as you can, making sure that you cover:
– all steps in your methods;
– the assumptions; and
– the reasons for your decisions. Include your checks – auto-checks and reasonableness checks on the various scenarios. Highlight any areas where special care needs to be taken, e.g. where a Goal Seek has been used. Keep in mind the requirements of your two audiences:
– a fellow student: and
– a senior actuary.

Paper 2
For the spreadsheet work in Paper 2 Read the question very carefully to ensure you know what has been modelled and the additional work which is required. Note the results required and plan your approach. It is recommended you spend about 30 minutes on working through the model and
planning the additional work before you start work on the spreadsheet. Keep your spreadsheet work simple and show all the calculations. Do not get too involved in the detail of the model. If you get stuck, make a reasonable assumption, document it in your summary, and move on. Be alert for checks you can apply. Test your output for accuracy and reasonableness – as you would do at work – and use the results of the reasonableness checks in your summary. If an answer does not look reasonable, check your formulae against the question. If you cannot find the error, note it in your summary. Remember: CP2 is not about determining the ‘right’ answer. You will not be required to add to the audit trail provided for this paper, but your summary will
need to cover the whole project in the question, not just the additional work you have carried
out.

For the summary in Paper 2
Focus on using the summary as a communication to your audience, a senior actuary. Include the approaches you have used for the whole project, not just for the additional work you have carried out. Give sufficient and accurate details of these (and the data) so that a senior actuary could check your methods and assumptions (however they do not need to be able to check your Excel spreadsheet using this document). Do not simply ‘copy and paste’ the text given to you in the audit, but amend the content to be appropriate to a senior actuary. Have consideration of the purpose of the Summary document and the target audience. For example, the Summary document is not intended to be used to help check the model, therefore Excel references are inappropriate. Candidates who copy large sections of the information in the exam question and/or the audit trail provided into their Summary document are likely to gain very little credit from the examiners for this. Follow the instructions in the question carefully. In particular, ensure you include all the results which have been requested for the whole project. You need to include any added value comments that explain the results you have obtained and conclusions on the results, and any comments that follow from the reasonableness checks. You also should include a comprehensive set of possible next steps.

Ps: If i were you, i would go in the order the exam paper questions' are scheduled. Completing the model and then doing the relevant sections. For example, doing 'Next Steps' first might not well get you clear the idea in your head. Whereas if you have already written methodology, talked about the results and conclusion, it might be well in your head what further work could have been done (that's my personal p.o.v). The whole point of to be able to do the assignment and report in 3 hours 15 minutes is to plan your work.
Click to expand...

In my opinion, if you spend 30 mins planning, you are risking running out of time to complete the exam.
One other advice on planning that I've heard in a tutorial for SA2 was that IFOA advises to spend up to 50% time for planning, which in my opinion is a recipe for disaster.
 
Yes, I know. I'm just saying it has never worked for me to plan for 30 mins because CP2 is very much hard on the time pressure. So realistically speaking, I would not advise people to plan for 30 mins.
 
Yeah, everyone needs to determine their own time they will be taking. One would know this by practising past exam under strict exam conditions.
 
Indeed - unfortunately after attempting past papers under strict exam conditions, I must say that I fair better with devoting much less time to planning (perhaps limited to the reading time of 15 mins); and dive into documenting objective, data, parameters right away.... ie before actually starting the model.... then model and document the actual calculations almost simultaneously....
in essence, pretty much what @Benoy Soman was saying....

Glad to hear it worked out for you though, @Dar_Shan0209 , will you be sitting on Wed and Thur as well?

Also, as it relates to the Next Steps in Paper 2, I know you said that we should do things according to the order asked in the question - ie with next steps last, but I would go with the advice of the persons who marked my Mock Exam script - if I'm running out of time to complete everything else, AT LEAST have a good number of Next Steps recorded... these can be easily picked up from the Assumptions (more in detail assumptions will be picked up when analysing results etc, of course)... or from the inherent shortcomings that you might even pick up while working your way through the model (as you have suggested I believe)....
 
Hello Pyuille,

As I mentioned earlier, different people manage their time differently. It is better for each one to devise their own strategy of how they would work.

Yeah, am sitting this week for CP2.

Goodluck
 
Last edited:
Viki2010 said:
In my opinion, if you spend 30 mins planning, you are risking running out of time to complete the exam.
One other advice on planning that I've heard in a tutorial for SA2 was that IFOA advises to spend up to 50% time for planning, which in my opinion is a recipe for disaster.
Click to expand...

They didn't define "planning". Maybe you writing the skeleton of an argument for each question counts as "planning" to them and the other 50% is to fill in the "meat" i.e. where you elaborate on certain points made to get the other half mark(s) of the points you made in the skeleton. Otherwise I feel that the 15 mins may be better for planning bar CP1 paper 2 (45 mins).
 
Thanks guys for your comments!

Hope you all have a productive day today with revision and good luck!
 
You must log in or register to reply here.
Back
Top