Accounting Multiple Choice Question – 6 April 2026

The scope and objectives of the internal audit function vary widely and depend on the size and structure of the entity and the requirements of its management.

Which ONE of the following functions should the internal audit NOT perform, and thus still operate effectively?

Select ONE answer:

1. Examination of financial and operational information for management
2. Authorisation of transactions in excess of the limits set by management
3. Review of accounting systems and related controls
4. Advising management on cost-effective controls for systems and activities

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 – Internal audit should not have operational responsibilities so should not authorise transactions or routinely prepare bank reconciliations.
3. Not correct
4. Not correct

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