Day: May 26, 2026

Assurance providers obtain evidence using procedures set out in ISA 500.

For the following test select the type of procedure which is being used.

• The assurance provider writes to a sample of customers, asking them to inform him of the balance they owe the company at year-end.

Select ONE answer:

1. Application
2. Inspection
3. Observation
4. Confirmation

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Documents and other pieces of evidence are inspected. Processes are observed. External confirmations involve seeking evidence from a third party.

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