Accounting Multiple Choice Question – 28 March 2026

Alex Manufacturing is a global group of engineering businesses.

The parent company, Alex Manufacturing plc, employs an internal audit function which carries out audits and investigations on the individual businesses in the group.

Which ONE of the following could the internal audit function carry out and still operate effectively?

Select ONE answer:

1. Special investigation into the profits of the Stafford Manufacturing unit, where the PLC group directors suspect a fraud may have been carried out
2. Testing the canteen food at the Glasgow Manufacturing unit as part of a routine internal audit cycle
3. Secondment to the accounts department of the Derby Manufacturing unit to cover the maternity leave of the financial controller
4. Identification of risks at the proposed Johannesburg sales and manufacturing unit, which is due to open in twelve months’ time

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 – Secondment to the financial controller role and being involved in the identification of risks should not be carried out by the internal auditor. This is because these roles are operational and would compromise the ability of the internal audit to provide a monitoring role. The risk assessment should be undertaken by the risk assessment committee or whoever is responsible for risk assessment.
2. Not correct
3. Not correct
4. Not correct

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