Accounting Multiple Choice Question – 11 May 2026

According to ISA (UK) 315 “Identifying and Assessing the Risks of Material Misstatement Through Understanding of the Entity and Its Environment” and ISA (UK) 520 “Analytical Procedures”, which ONE of the following statements is correct?

Select ONE answer:

1. Analytical procedures must be used as risk assessment procedures
2. Analytical procedures must be used as substantive procedures
3. Analytical procedures must be carried out by junior-level assurance staff
4. Analytical procedures must be carried out by senior-level assurance staff

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 – While analytical procedures must be used at the risk assessment and overall review stages, they need not be used as substantive procedures as tests of details and other procedures may be more appropriate.
2. Not correct
3. Not correct
4. Not correct

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