Day: September 1, 2025

Accounting Multiple Choice Question – 1 September 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Which ONE of the following must be included in the engagement letter?

Select ONE answer:

  1. Arrangements regarding the planning and performance of the audit
  2. The form of any reports
  3. The auditing standards that the work will be based upon
  4. The basis on which fees are computed

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 == > Arrangements regarding the planning and performance and the basis of the fee calculation are not essential to be included in the engagement letter, whereas the responsibilities of the auditor and the form of any reports must be included in the engagement letter.
  3. Not correct
  4. Not correct

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