Accounting Multiple Choice Question – 3 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 operates in a fast-moving, high-tech environment.

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 => Inherent – a fast-moving, high-tech environment presents inherent risks both at the company level and at the individual account level (e.g., inventory).
2. Not correct
3. Not correct
4. Not correct

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