Accounting Multiple Choice Question – 22 August 2025

Which ONE of the following are auditors always required to do on being invited to accept an audit engagement?

Select ONE answer:

1. Do a general search on the internet about the prospective client
2. Ensure they have adequate existing resources to carry out the audit
3. Obtain references for key personnel within the entity to be audited
4. Communicate with the existing auditors to discover any reasons they should not accept the appointment

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 == > It will not be necessary to obtain references when the entity is already known to the firm. It will not be necessary to contact previous auditors in the case of a company’s first audit.
3. Not correct
4. Not correct

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