Month: September 2025

Accounting Multiple Choice Question – 2 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 NOT a purpose of a letter of engagement?

Select ONE answer:

  1. Setting out the form of any report to be issued
  2. Documenting and confirming acceptance of the appointment
  3. Providing constructive suggestions to management concerning improvements in internal control
  4. Narrowing the expectations gap

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 == >    The following are NOT purposes of an engagement letter: providing constructive suggestions to management concerning improvements to internal control & providing evidence on matters where other evidence is not expected to exist (e.g., on management plans for the future of the entity) – this is the purpose of a written representation.
  4. Not correct

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Accounting Multiple Choice Question – 1 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 must be included in the engagement letter?

Select ONE answer:

  1. Arrangements regarding the planning and performance of the audit
  2. The form of any reports
  3. The auditing standards that the work will be based upon
  4. The basis on which fees are computed

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 2

  1. Not correct
  2. Correct == > Arrangements regarding the planning and performance and the basis of the fee calculation are not essential to be included in the engagement letter, whereas the responsibilities of the auditor and the form of any reports must be included in the engagement letter.
  3. Not correct
  4. Not correct

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