Day: September 21, 2025

Accounting Multiple Choice Question – 21 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.

  • Directors’ pay is related to company profitability…..…..?

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 == > Profit related pay may motivate the directors to distort the financial information, so constituting an inherent risk.
  2. Not correct
  3. Not correct
  4. Not correct

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