Accounting Multiple Choice Question – 9 February 2026

Tick, Bash and Co are the auditors of Alex Manufacturing Ltd.

They have identified the following deficiency within Alex Manufacturing Ltd’s accounting system.

For the stated deficiency, select the most likely consequence which might arise because of this deficiency.

• Purchase ledger clerks are permitted to amend standing data on the payables master file

Select ONE answer:

1. Prompt payment discounts were not obtained
2. Purchase of inferior goods
3. Payment to fictitious suppliers
4. Suppliers 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 3

1. Not correct
2. Not correct
3. Correct – By having access to the payables master file, purchase ledger clerks are in a position to create fictitious suppliers and so then enable payments to them.
4. Not correct

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