Month: January 2026

Bash and Co, the auditor of Alex Manufacturing Ltd., has identified the following deficiency within that business’s accounting system.

For the deficiency identified below, select the MOST likely consequence which might arise because of this deficiency.

• Invoices are not checked against the original orders.

Select ONE answer:

1. Sales receipts
2. Sales invoices
3. Goods dispatch notes
4. Sales orders

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 checking of invoices to orders will reduce the risk of accepting invoices for goods or services which were not ordered.
4. Not correct

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

Bash and Co, the auditor of Alex Manufacturing Ltd has identified the following deficiency within that business’s
accounting system.

For the deficiency identified below, select the MOST likely consequence which might arise because of this deficiency.

• Goods inwards are not checked.

Select ONE answer:

1. False invoices could be paid
2. Accepting inferior quality goods
3. Services received are not accurately recorded
4. The Supplier Will become unhappy with Alex Manufacturing Ltd

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 – 1 is incorrect as it does not relate to the goods inwards stage of the purchase system. 3 is also erroneous, as the question refers to goods and not services.
3. Not correct
4. Not correct

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

For the following example, select the type of internal control activity it represents?

• Numerical sequence checks are undertaken on goods received records.

Select ONE answer:

1. Information processing
2. Authorisation
3. Matching
4. Performance review

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 – Checking numerical sequences helps ensure completeness of records.
2. Not correct
3. Not correct
4. Not correct

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

For the following example, select the type of internal control activity it represents?

– Monthly management accounts are compared to budget and differences investigated.

Select ONE answer:

1. Authorisation
2. Information processing
3. Matching
4. Performance review

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 – Analysis of actual performance against budget is performance review.

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

Which ONE of the following populations should the auditor start from when testing for the completeness of reported sales of a manufacturing company?

Select ONE answer:

1. Sales receipts
2. Sales invoices
3. Goods dispatch notes
4. Sales orders

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 – Revenue is usually recognised when goods have been despatched to the customer as this is the point at which control transfers to the customer. To test for completeness of sales, auditors should therefore start from the goods despatched notes.
4. Not correct

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