The Multiple Choice Questions Blog

Auditors seek written representations from management to support oral representations made during the audit.

For the following statement in relation to a statutory audit, select whether a written representation is of no relevance, depends on the type of business, required or not required.

• The accounting policies selected and applied by management are appropriate.

Select ONE answer:

1. No relevance
2. Required
3. Depends on the type of business
4. Not required

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Specific written representations may include confirmation from management that the accounting policies selected are appropriate, but this is not compulsory.

This work is licensed under a Creative Commons Attribution 4.0 International License.

Auditors seek written representations from management to support oral representations made during the audit.

For the following statement in relation to a statutory audit, select whether a written representation is of no relevance, depends on the type of business, required or not required.

• The directors have fulfilled their responsibility for the preparation of the financial statements.

Select ONE answer:

1. No relevance
2. Not required
3. Required
4. Depends on the type of business

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

For the following statement concerning written representations, select whether it is of no relevance, depends on the type of business, true or false.

• If the written representations given do not agree with other evidence, auditors should not trust any other representations made by management during the audit.

Select ONE answer:

1. No relevance
2. False
3. Depends on the type of business
4. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – if written representations are inconsistent with other audit evidence, the auditor shall perform audit procedures to attempt to resolve the matter. If the matter remains unresolved, the auditor shall reconsider the assessment of management.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

For the following statement concerning written representations, select whether it is of no relevance, depends on the type of business, true or false.

• Written representations are APPROPRIATE evidence when evidence that the auditors expected to be available is unavailable.

Select ONE answer:

1. False
2. No relevance
3. Depends on the type of business
4. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – this is an inability to obtain sufficient appropriate audit evidence.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

For the following statement concerning written representations, select whether it is of no relevance, depends on the type of business, true or false.

• The auditor should evaluate whether the representations appear reliable and are consistent with other evidence obtained before they are relied on as audit evidence.

Select ONE answer:

1. No relevance
2. False
3. Depends on the type of business
4. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.