I have noticed when completing past exams a lot of the reasonableness checks are just comments on the results on how they are in line with expectations/make sense relative to the other scenarios etc. I am wondering where is the best place to locate these comments. Should each reasonable checks be positioned in the same location as the output it is sense checking and hence these comments may be scattered among the worksheets, or should they be grouped eg in a table at the end. Is it also worth considering to place them just in the audit trail and not in the model? I'm not sure what is the best practice and examiners expectations are on this so if anyone knows it would be great.
Hi, In the exams, you would be testing the output for both accuracy and reasonableness. In your spreadsheet, you would need to do some manipulations eventually arriving at an output. If your output 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. Do not waste too much, remember that CP2 is not about determining the ‘right’ answer. In your audit trail for P1, marks are awarded for clear statements of reasonableness checks performed, and their results explained. In your summary report, 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. Hope this helps!
