The Multiple Choice Questions Blog

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

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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.

Which ONE of the following documents would NOT be held in a current audit file?

Select ONE answer:

1. Communications with experts
2. Lease agreements
3. Audit file review notes
4. Copies of management accounts

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 – Details of the history of the client’s business and lease agreements would be held on the permanent audit file.
3. Not correct
4. Not correct

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

Which ONE of the following documents would NOT be held on a current audit file?

Select ONE answer:

1. Details of the history of the client’s business
2. Communications with experts
3. Audit file review notes
4. Copies of management accounts

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 – Details of the history of the client’s business and lease agreements would be held on the permanent audit file.
2. Not correct
3. Not correct
4. Not correct

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