Accounting Multiple Choice Question – 27 May 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 attends the inventory count and ensures that it is being carried out in accordance with the issued instructions.

Select ONE answer:

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

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

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