2 We undertook an issue analysis for this deal whereby we developed a number of detailed points for examination about high-level audit issues. In this case, the high-level audit issues were:
■ Whether the establishment of the new museum was consistent with the Royal Armouries' long-term business strategy;
■ How RAI's financial problems arose;
■ Whether the terms of the original deal aided the resolution of this financial crisis;
■ What options the Armouries and the Department considered to tackle the crisis;
■ What the terms were of the revised deal made to save the museum; and
■ Whether current guidance on PFI good practice would have helped the Armouries and the Department in coping with RAI's financial problems and the threat which these posed to the museum's continued operation.
3 We collected the evidence in support of our findings under each of these issues from examination of the information about the deal contained in the Department's and Royal Armouries' records. We also discussed the deal with the Department and Armouries, and the private sector partner, RAI.