The Multiple Choice Questions Blog

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

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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.

According to ISA 580, which ONE of the following MUST auditors obtain written representations about?

Select ONE answer:

1. Material matters where other evidence cannot reasonably be expected to exist
2. Management’s belief that it has fulfilled its responsibility for the preparation of an employee feedback questionnaire
3. That the financial statements record and reflect all transactions
4. Material matters where other evidence is missing due to an emergency, such as a fire

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 – Auditors may only obtain written representations to support other audit evidence. Where evidence is missing due to a fire, this is not a matter to obtain a written representation on but is an inability to obtain sufficient appropriate audit evidence.
4. Not correct

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

According to ISA 580, which ONE of the following MUST auditors obtain written representations about?

Select ONE answer:

1. Material matters where other evidence cannot reasonably be expected to exist
2. Management’s belief that it has fulfilled its responsibility for the preparation of the financial statements
3. That the financial statements record and reflect all transactions relating to stationery expenditure
4. Material matters where other evidence is missing due to an emergency, such as a fire

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 – Auditors may only obtain written representations to support other audit evidence. Where evidence is missing due to a fire, this is not a matter to obtain a written representation on but is an inability to obtain sufficient appropriate audit evidence.
3. Not correct
4. Not correct

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

According to ISA (UK) 580, Written Representations, which ONE of the following is an auditor NOT required to confirm in writing with management?

Select ONE answer:

1. Management’s agreement of the level of materiality used during the audit
2. Management’s belief that it has fulfilled its responsibility for the preparation of financial statements
3. All transactions have been reflected in the financial statements
4. The fact that management has provided the auditor with all relevant information

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 – the level of materiality used during the audit is the responsibility of the auditors.
2. Not correct
3. Not correct
4. Not correct

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