The Multiple Choice Questions Blog

For the following point, select whether it is a valid reason for preparing audit working papers; not a valid reason for preparing working papers; it is of no importance to audit working papers; or it is of no material significance to the preparation of audit working papers?

• To enable the auditor to charge a higher fee

Select ONE answer:

1. Valid
2. No material importance
3. Not Valid
4. No 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 3

1. Not correct
2. Not correct
3. Correct – is not valid as there is no direct correlation between the number of working papers produced and the audit fee charged.
4. Not correct

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For the following point, select whether it is a valid reason for preparing audit working papers; not a valid reason for preparing working papers; it is of no importance to audit working papers; or it is of no material significance to the preparation of audit working papers?

• To help the audit team to plan and perform the audit

Select ONE answer:

1. Not Valid
2. Valid
3. No material importance
4. No 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
3. Not correct
4. Not correct

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

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

• Working papers belong to the client and may be stored at their premises.

Select ONE answer:

1. false
2. no importance
3. no material importance
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
2. Not correct
3. Not correct
4. Not correct

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

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

• An auditor can destroy the audit plans relating to Alex Manufacturing Ltd for the year ended 30 June 2020 in 2028

Select ONE answer:

1. no importance
2. 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 – Although ISA 230 requires documentation to be kept for a minimum of five years from the date of the auditor’s report, ICAEW requires Registered Auditors to keep all audit working papers required by auditing standards for a period of at least six years from the end of the accounting period to which they relate.

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

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

• Working papers should be stored in locked premises.

Select ONE answer:

1. no importance
2. no material importance
3. true
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 3

1. Not correct
2. Not correct
3. Correct – Working papers belong to the auditor and should be stored securely by the auditor in locked premises.
4. Not correct

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