Accounting Multiple Choice Question – 18 September 2025

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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