The Multiple Choice Questions Blog

For the following statement below concerning computer assisted audit techniques select whether it is true, false, it depends or of minor efficiency only.

• Computer assisted audit techniques can be used to perform the assurance procedure of “re-performance”.

Select ONE answer:

1. false
2. true
3. it depends
4. of minor efficiency only

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 – Audit software uses the assurance provider’s specialised software. It can extract and analyse information from the client’s system. Test data are used to test controls by entering data that should activate a control and verifying that it does.
3. Not correct
4. Not correct

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Assurance providers obtain evidence using procedures set out in ISA 500.

For the following test select the type of procedure which is being used.

• The assurance provider attends the inventory count and ensures that it is being carried out in accordance with the issued instructions.

Select ONE answer:

1. Observation
2. Inspection
3. Confirmation
4. Application

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 – Documents and other pieces of evidence are inspected. Processes are observed. External confirmations involve seeking evidence from a third party.
2. Not correct
3. Not correct
4. Not correct

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

Assurance providers obtain evidence using procedures set out in ISA 500.

For the following test select the type of procedure which is being used.

• The assurance provider writes to a sample of customers, asking them to inform him of the balance they owe the company at year-end.

Select ONE answer:

1. Application
2. Inspection
3. Observation
4. Confirmation

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 – Documents and other pieces of evidence are inspected. Processes are observed. External confirmations involve seeking evidence from a third party.

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

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. An invoice omitted in error
3. A timing difference between customer records and client records
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 3

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

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

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.