The Multiple Choice Questions Blog

Which ONE of the following misstatements discovered in a sample would not generally be extrapolated against the total population?

Select ONE answer:

1. A misstatement in invoice value
2. A misposting between customer accounts
3. An invoice omitted in error
4. An invoice disputed by a customer

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 – A misposting between customer accounts and a timing difference between customer records and client records are errors which would not generally be extrapolated against the total value of the population.
3. Not correct
4. Not correct

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

The assurance provider is using statistical sampling.

Which ONE of the following methods would be most appropriate to use to select a sample of accounts receivable?

Select ONE answer:

1. Monetary unit selection
2. Haphazard selection
3. Sequence selection
4. Client directed selection

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 – Sequence sampling would more commonly be used in testing controls. Haphazard selection should not be used when the assurance provider is using statistical sampling.
2. Not correct
3. Not correct
4. Not correct

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

The assurance provider is using statistical sampling.

Which ONE of the following methods would be most appropriate to use to select a sample of accounts receivable?

Select ONE answer:

1. Haphazard selection
2. Sequence selection
3. Client directed selection
4. Systematic selection

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 – Sequence sampling would more commonly be used in testing controls. Haphazard selection should not be used when the assurance provider is using statistical sampling.

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

The assurance provider is using statistical sampling.

Which ONE of the following methods would be most appropriate to use to select a sample of accounts receivable?

Select ONE answer:

1. Haphazard selection
2. Sequence selection
3. Random selection
4. Client directed selection

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 – Sequence sampling would more commonly be used in testing controls. Haphazard selection should not be used when the assurance provider is using statistical sampling.
4. Not correct

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

Which ONE of the following is a factor that an assurance provider should consider when determining the sample size for a test of details?

Select ONE answer:

1. An increase in the level of costs that can be passed onto the client
2. An increase in the level of expected misstatement
3. The time available to complete the test
4. The skill of the team member assigned to carry out the test

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 time available to complete the test and the skill of the team member assigned to carry out the test will not affect the number of items to be tested, whereas risk assessment and expected misstatement will.
3. Not correct
4. Not correct

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