Accounting Multiple Choice Question – 27 September 2025

For each of the following situations, select the most appropriate audit approach that should be used by the assurance firm.

The audit of a long-standing client with a sophisticated IT system and an internal audit department………..?

Select ONE answer:

1. Tests of controls only
2. Substantive procedures only
3. Analytical procedures only
4. A mix of tests of controls and substantive procedures

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 => A mix of tests of control and substantive procedures may be used for the audit of a long-standing client with a sophisticated IT system and an internal audit department, as it will be possible to rely on internal controls and then perform reduced substantive procedures.

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