Accounting Multiple Choice Question – 14 February 2026

A deficiency has been identified in the following area of the company’s purchase system.

For the deficiency below, select the risk which is MOST LIKELY to arise.

• A complete lack of segregation of duties in relation to the ordering process

Select ONE answer:

1. Goods and services might not be obtained on the most advantageous terms
2. Invoices may not be recorded, resulting in non-payment
3. The company may not take advantage of the whole period of credit extended
4. Unauthorised purchases may be made for personal use

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 – The risk of not taking full advantage of a period of credit would be a consequence of problems with goods received or payments.

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