The Multiple Choice Questions Blog

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

For each of the following types of information, select the appropriate file in which it will be contained.

• Written representation from management

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 1

1. Correct – The permanent audit file contains documents of ongoing relevance, whereas the current audit file contains documents and working papers that relate directly to the audit of the current year end
2. Not correct
3. Not correct
4. Not correct

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

For each of the following types of information, select the appropriate file in which it will be contained.

• Audit strategy document

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 permanent audit file contains documents of ongoing relevance, whereas the current audit file contains documents and working papers that relate directly to the audit of the current year end

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 point, select whether it is a valid reason for preparing the required documentation; not a valid reason for preparing the required documentation; it is of no importance to preparing the required documentation; or it is of no material significance to preparing the required documentation?

• To provide a record of evidence gathered to support the conclusions reached

Select ONE answer:

1. Not Valid
2. No material importance
3. Valid
4. No 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 fieldwork documentation provides a record of evidence gathered.
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 point, select whether it is a valid reason for preparing the required documentation; not a valid reason for preparing the required documentation; it is of no importance to preparing the required documentation; or it is of no material significance to preparing the required documentation?

• To help in this year’s review process

Select ONE answer:

1. Not Valid
2. Valid
3. No material importance
4. No 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 – fieldwork documentation helps in an effective review process.
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 point, select whether it is a valid reason for preparing the required documentation; not a valid reason for preparing the required documentation; it is of no importance to preparing the required documentation; or it is of no material significance to preparing the required documentation?

• To help in establishing this year’s overall audit strategy

Select ONE answer:

1. Not Valid
2. No material importance
3. No importance
4. 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 – fieldwork documentation does not help in establishing the audit strategy
2. Not correct
3. Not correct
4. Not correct

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