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.

• The UK Corporate Governance Code requires all listed companies in the UK to have an internal audit function.

Select ONE answer:

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

1. Not correct
2. Not correct
3. Correct – The UK Corporate Governance Code does not require listed companies to have an internal audit function per se but requires companies to consider the need for one annually, to maintain an adequate system of internal controls.
4. Not correct

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

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

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.

• 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.