Month: January 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

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

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

For each deficiency, select the most likely consequence which might arise as a result of that deficiency:

Invoices are matched to orders but not to warehouse records.

Select ONE answer:

1. Customers may be dissatisfied
2. Customers may not pay promptly
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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct => If invoices are matched to orders but not warehouse records, invoices may be raised in error.

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

Select whether each of the following statements has no impact, is true, is unimportant or is false.

In the sales system, the following duties should be segregated:

• Credit control and invoicing

Select ONE answer:

1. No impact
2. Unimportant
3. True
4. False

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 duties of authorisation, recording and custody of assets should be segregated
4. Not correct

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

Select whether each of the following statements has no impact, is true, is unimportant or is false.

In the sales system, the following duties should be segregated:

• Recording sales and access to remittances from customers

Select ONE answer:

1. No impact
2. True
3. Unimportant
4. False

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 => The duties of authorisation, recording and custody of assets should be segregated
3. Not correct
4. Not correct

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

The following describes the processes which make up the sales system in operation at Big Staffie and Co.

For the process described below, select whether it represents a strength, a deficiency, a minor change or no change of the sales system.

• Customer queries are dealt with by reception staff.

Select ONE answer:

1. Deficiency
2. Minor Change
3. No Change
4. Strength

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 => This option is correct as the reception staff are unconnected with any of the departments with whom customers might have a query – ordering, warehouse or accounts.
2. Not correct
3. Not correct
4. Not correct

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