The Multiple Choice Questions Blog

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

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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.

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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.

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.

• Engagement Letter

Select ONE answer:

1. Current audit file
2. Permanent audit file
3. Both
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 2

1. Not correct
2. Correct – The engagement letter will 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.

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 enable quality control reviews to be carried out

Select ONE answer:

1. Valid
2. Unimportant
3. No material importance
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 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.