Day: March 27, 2026

For the following statement below concerning internal audit, select whether it is true, false, of no importance and / or of no material importance.

• Internal audit focuses on the efficiency and effectiveness of a company’s operations by testing its internal controls. They do not carry out substantive testing.

Select ONE answer:

1. True
2. Of no importance
3. Of no material importance
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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Internal audit uses both testing of internal controls and substantive testing, as appropriate to the task in hand.

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