Day: September 12, 2025

Accounting Multiple Choice Question – 12 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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Audit risk can be split into three components: inherent risk, control risk and detection risk.

For each of the following examples, select the type of risk illustrated.

The organisation is seeking to raise finance for a new venture…..?

Select ONE answer:

  1. Inherent
  2. Control
  3. Detection
  4. No Risk

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 fact the organisation is seeking to raise finance for a new venture represents a risk at the company level that could increase the susceptibility of the accounts to material fraud and error.
  2. Not correct
  3. Not correct
  4. Not correct

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