Accounting Multiple Choice Question – 7 August 2025

A colleague of Alex, an accountant, has made three statements below in respect of suitable criteria used in an assurance engagement for the external audit or statutory audit of a limited company in the UK

Statement 1 – The criteria for all assurance engagements will be the same.

Statement 2 – Suitable criteria can only be identified for assurance engagements relating to financial statements.

Statement 3 – Relevant criteria for assurance engagements relating to financial statements are likely to be accounting standards.

Identify whether the statements made above are true or false?

Select ONE answer:

1. Statement 1. True and Statement 2. False and Statement 3. False
2. Statement 1. False and Statement 2. False and Statement 3. True
3. Statement 1. True and Statement 2. True and Statement 3. False
4. Statement 1. False and Statement 2. True and Statement 3. 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 2

1. Not correct
2. Correct == > Criteria used will depend on the type of engagement conducted. Suitable criteria should be available for other engagements e.g., health and safety can be measured against health and safety legislation.
3. Not correct
4. Not correct

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