The Multiple Choice Questions Blog

Which ONE of the following statements is correct?

Select ONE answer:

1. Working papers belong to the assurance provider
2. Working papers should be kept for the current and previous year only
3. Working papers can be made available to any third party without needing any client permission
4. Working papers should be made available to any third party at the slightest request of the client

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 – Option 2 is incorrect as ICAEW requires all firms should keep all audit working papers for at least six years from the end of the accounting period to which they relate, so more than the current and previous year will be kept. Option 4 is incorrect as working papers belong to the assurance provider, so this decision does not belong to the client.
2. Not correct
3. Not correct
4. Not correct

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Which ONE of the following is likely to be kept on a PERMANENT audit file?

Select ONE answer:

1. Planning memorandum
2. Review notes
3. Current year’s draft financial statements
4. Engagement letter

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 – The other options will be kept on the CURRENT year audit file

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

Which ONE of the following is likely to be kept on a PERMANENT audit file?

Select ONE answer:

1. Planning memorandum
2. Review notes
3. The previous year’s signed financial statements
4. Current year’s draft financial statements

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 – The other options will be kept on the CURRENT year audit file
4. Not correct

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

Which ONE of the following is NOT something that audit working papers would normally show?

Select ONE answer:

1. The name of the client
2. The initials of the person supervising the work
3. The date the work was carried out
4. The date the work was reviewed

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 –  The answer is correct as the initials of the person supervising the work are not necessary, but the reviewer would initial the working paper. The supervisor and the reviewer might be the same person, but not necessarily.
3. Not correct
4. Not correct

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

Which ONE of the following is NOT something that audit working papers would normally show?

Select ONE answer:

1. The date the work was planned
2. The name of the client
3. The date the work was carried out
4. The date the work was reviewed

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 answer is correct as the details relating to the planning of the work will be included in the planning memorandum.
2. Not correct
3. Not correct
4. Not correct

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