Day: September 18, 2025

Accounting Multiple Choice Question – 18 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 is normally designed to detect possible material monetary errors in the figures in financial statements?

Select ONE answer:

  1. Test of control
  2. Walk-through test
  3. Analytical procedure
  4. Observation of a procedure

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 3

  1. Not correct
  2. Not correct
  3. Correct => Analytical procedures help identify material monetary errors in the financial statements (which could be due to changes in account balances or key ratios because of mis-postings, misclassification errors or under/overstatements). The other techniques are all concerned with systems assessment or testing of controls.
  4. Not correct

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