The Multiple Choice Questions Blog

The assurance provider will prepare documentation in relation to the fieldwork carried out on an assurance engagement.

For the following item below, select whether the matter is unimportant, of no material importance, a valid reason or a non-valid reason for preparing the required documentation.

• To retain a record of matters of continuing significance to future engagements

Select ONE answer:

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

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
4. Not correct

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

Which ONE of the following statements is correct?

Select ONE answer:

1. Working papers do NOT belong to the assurance provider
2. Working papers should not be made available to third parties without the client’s permission
3. Working papers should be kept for the current and previous year only
4. Working papers should be made available to any third party at the slightest request of the client

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 – Option 3 is incorrect as ICAEW requires all firms should keep all audit working papers for at least six years from the end of the accounting period to which they relate, so more than the current and previous year will be kept. Option 4 is incorrect as working papers belong to the assurance provider, so this decision does not belong to the client.
3. Not correct
4. Not correct

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

Which ONE of the following statements is correct?

Select ONE answer:

1. Working papers belong to the assurance provider
2. Working papers should be kept for the current and previous year only
3. Working papers can be made available to any third party without needing any client permission
4. Working papers should be made available to any third party at the slightest request of the client

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 – Option 2 is incorrect as ICAEW requires all firms should keep all audit working papers for at least six years from the end of the accounting period to which they relate, so more than the current and previous year will be kept. Option 4 is incorrect as working papers belong to the assurance provider, so this decision does not belong to the client.
2. Not correct
3. Not correct
4. Not correct

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

Which ONE of the following is likely to be kept on a PERMANENT audit file?

Select ONE answer:

1. Planning memorandum
2. Review notes
3. Current year’s draft financial statements
4. Engagement letter

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 other options will be kept on the CURRENT year audit file

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

Which ONE of the following is likely to be kept on a PERMANENT audit file?

Select ONE answer:

1. Planning memorandum
2. Review notes
3. The previous year’s signed financial statements
4. Current year’s draft financial statements

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 other options will be kept on the CURRENT year audit file
4. Not correct

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