Paper 1 - Audit Trail

[Viki2010]

"avoidance of excessive reproduction of Excel formulae"

does this mean that we should always express the mathematical formulae in mathematical language or in words?

but also make note on the excel functions used?

 

[Dar_Shan0209]

Hello,

According to me, the following is a "Not to do" in the audit trail:

The relavant annuity factors have been derived from the "Parameters" Worksheet using VLOOKUP($C2, Parameters!A3:C3, 3, FALSE).

This one i believe is what is required:
The relavant annuity factors have been derived from the "Parameters" Worksheet using the "VLOOKUP" function.

This is because a senior actuary and a fellow colleague would have the background in Excel so you shouldn't go in much details in the excel formulae but HOW you arrived at the calculations so that if they need to change anything, they will know how this has been done.

I hope you get my point.

 

[Viki2010]

Hi, thank you. This makes perfect sense. However, if we are in the METHODOLOGY section, we should be describing all formulae exactly, correct?

 

[Dar_Shan0209]

Hello, yeah, you just need what has been done. Include any mathematical formulae/Excel function you used.

 

[David Hopkins]

A good way to approach this is to pretend you're explaining your calculations to another student who is sitting next to you. You would describe it in WORDS, not just read out the Excel formula. So, you might say something like "The High Earners (Males) and (Females) cells use the COUNTIFS function to count the number of employees of each sex whose income exceeds the threshold for the top rate of tax".

 

[pyuille_1609]

if we are in the METHODOLOGY section, we should be describing all formulae exactly, correct?

Indeed, we ought to avoid listing every single detail/input in our formulae.. as @Dar_Shan0209 has rightly indicated.... and as Mr @David Hopkins has also noted... describe calculations in words as much as possible...

I agree that this might be confusing since a LOT of the sample solutions have shown intricate formulae.... these might have perhaps been more present in the "older" past paper solutions.... HOWEVER, I think it depends on the "complication" of the formula altogether... so it may be wise to try to avoid having to use 100 words to explain a formula/methodology when you can simply use an algorithm (perhaps already provided in the additional guidance sheet) to describe it!! (by the way, do we still get additional guidance sheets?)

 

[Viki2010]

I don't recalling getting the guidance sheets in Sept 2018 sitting.

 

[pyuille_1609]

I don't recalling getting the guidance sheets in Sept 2018 sitting.

Me either that's why I asked.

 

[Viki2010]

I prefer papers without guidance - means these are less complex?

 

[pyuille_1609]

Perhaps, but not necessarily true....