The Multiple Choice Questions Blog

For the following statement below concerning internal audit, select whether it is true, false, of no importance and / or of no material importance.

• Internal audit can never be independent of those on whom they are reporting, because they are employees of the company.

Select ONE answer:

1. True
2. False
3. Of no importance
4. Of no material importance

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 – Because independence is a concern, internal audit report to the board of directors or the audit committee.
3. Not correct
4. Not correct

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Internal audit helps in achieving the corporate objectives of a business.

For the statement below, select whether it is of no importance, of no material importance, true or false.

• Internal auditors should not get involved in operational matters.

Select ONE answer:

1. True
2. Of no importance
3. Of no material importance
4. False

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
2. Not correct
3. Not correct
4. Not correct

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

Internal audit helps in achieving the corporate objectives of a business.

For the statement below, select whether it is of no importance, of no material importance, true or false.

• An internal audit can be seen as an internal control in a company.

Select ONE answer:

1. Of no importance
2. Of no material importance
3. False
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.

Internal audit helps in achieving the corporate objectives of a business.

For the statement below, select whether it is of no importance, of no material importance, true or false.

• Having an internal audit function is a requirement of the UK Corporate Governance Code.

Select ONE answer:

1. Of no importance
2. Of no material importance
3. False
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 3

1. Not correct
2. Not correct
3. Correct – Having an internal audit function is not a requirement of the UK Corporate Governance Code but the need for directors to review the need for one annually is a requirement.
4. Not correct

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

Which ONE of the following roles should the internal audit function NOT take on to help the board in its management of the company and still operate effectively?

Select ONE answer:

1. Giving expert advice on technical accounting matters
2. Liaising with the external auditors
3. Carrying out the statutory audit
4. Auditing board reports not audited by the external auditors

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 – it is the external auditors who have the legal duty to carry out the statutory audit. It is, however, usually encouraged that there is some co-operation between the internal and external auditors where this is possible.
4. Not correct

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