Accounting Multiple Choice Question – 2 October 2025

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.

– The organisation only has a few employees in its accounting department.

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 2

1. Not correct
2. Correct => Control – a few employees indicates the risk of limited segregation of duties, which is a control deficiency.
3. Not correct
4. Not correct

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