Accounting Multiple Choice Question – 23 September 2025

Which ONE of the following would NOT increase inherent audit risk?

Select ONE answer:

1. A significant number of balances are based on estimates
2. The financial statements include complex transactions
3. The company is seeking to raise finance
4. Audit staff are inexperienced

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 => Incorrect sample sizes and inexperienced audit staff will affect detection risk.

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