Accounting Multiple Choice Question – 16 May 2026

Which ONE of the following statements is correct?

Select ONE answer:

1. When testing for overstatement, the assurance provider will NOT test items from the accounting records to the supporting documents
2. When testing for understatement, the assurance provider will select items from outside the accounting records and trace to the records
3. When testing for understatement, the assurance provider will test items from the accounting records to the supporting documents
4. When testing for overstatement, the assurance provider will select items from outside the accounting records and trace to the records

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 – When testing for understatement (ie, seeking to discover omissions), the assurance provider will select items from outside the accounting records and trace them to the records.
3. Not correct
4. Not correct

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