Accounting Multiple Choice Question – 12 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 substantive procedures
2. Analytical procedures must be used during the overall review stage of an audit
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 2

1. Not correct
2. Correct – Although it may be advisable for analytical procedures to be carried out by senior level assurance staff, this is not a requirement of ISA 520.
3. Not correct
4. Not correct

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