Accounting Multiple Choice Question – 17 September 2025

Which ONE of the following would NOT be used in understanding the entity in accordance with ISA 315 (UK), Identifying and Assessing the Risks of Material Misstatement Through Understanding of the Entity and Its Environment?

Select ONE answer:

1. A preliminary review of Industry, regulatory and other external factors
2. A preliminary review of internal controls
3. A preliminary review of previous audit work done by the auditors
4. The results of a review of events after the date of the financial statements

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 == > Tests of details and review of events after the date of the financial statements are normally performed after the initial planning stage of the audit.

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