Day: January 6, 2026

The external auditor at Alex Ltd has identified the following deficiency within that organisation’s sales system.

For the deficiency, select the MOST likely consequence which might arise as a result of that deficiency.

• Receivables statements are not sent to customers.

Select ONE answer:

1. Customers may not pay promptly
2. Customers may be dissatisfied
3. Orders may be accepted from customers who are unable to pay
4. Invoices may be raised in error

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 => If receivables statements are not sent to customers, customers may not pay promptly.
2. Not correct
3. Not correct
4. Not correct

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