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 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

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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.

Many auditors use two types of audit files: a current audit file and a permanent audit file.

For the following document, select whether it is most likely to be included in the current audit file, permanent audit file, both or neither.

• Manager review notes

Select ONE answer:

1. Permanent audit file
2. Both
3. Neither
4. Current audit file

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 – The manager review notes will be on the current file only.

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

Many auditors use two types of audit files: a current audit file and a permanent audit file.

For the following document, select whether it is most likely to be included in the current audit file, permanent audit file, both or neither.

• Audit Plan

Select ONE answer:

1. Permanent audit file
2. Both
3. Current audit file
4. Neither

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 audit plan will be on the current file only.
4. Not correct

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