Month: June 2026

All methods of obtaining audit/assurance evidence have deficiencies.

An example of this is listed below.

For the deficiency, select the method of obtaining evidence which is most likely to result in that deficiency.

• Limited to the point in time that it takes place

Select ONE answer:

1. Direct confirmation of a receivables balance
2. Direct confirmation of a payables balance
3. Analytical review
4. Observation of a procedure

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 – The weakness of observation of a procedure is that the conclusion drawn as a result only applies to the system at the time the observation took place – hence it is limited to the point in time it takes place.

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For the following piece of evidence, select whether it is more reliable, less reliable, no difference, or it depends on the situation than the piece of evidence it is paired with.

• A balance shown on a third-party bank statement is more reliable/less reliable than a business’s own balance generated from the Cashbook.

Select ONE answer:

1. Less reliable
2. No difference
3. More reliable
4. It depends on the situation

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 3

1. Not correct
2. Not correct
3. Correct – A bank statement is more reliable than a cash book as it is generated by a third party.
4. Not correct

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For the following piece of evidence, select whether it is more reliable, less reliable, no difference, or it depends on the situation than the piece of evidence it is paired with.

• An original copy of a lease agreement is more reliable/less reliable than a photocopy.

Select ONE answer:

1. Less reliable
2. More reliable
3. No difference
4. It depends on the situation

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 – Original documents are more reliable than copies.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

For the following piece of evidence, select whether it is more reliable, less reliable, no difference, or it depends on the situation than the piece of evidence it is paired with.

• A sales invoice is more reliable/less reliable than a purchase invoice.

Select ONE answer:

1. Less reliable
2. More reliable
3. No difference
4. It depends on the situation

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 – A sales invoice is less reliable than a purchase invoice as it is internally generated.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

For the following statement below, select whether it is of no relevance, depending on the size of the client, true or false in respect of the procedures to obtain evidence.

• Inquiry is always an unreliable means of obtaining evidence.

Select ONE answer:

1. Of no relevance
2. True
3. Depending on the size of the client
4. False

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 – Physical examination of property, plant and equipment confirms its existence, which may belong to a third party. The reliability of the inquiry depends on who is providing the information. A third party, e.g., a bank, would normally be a reliable source.

This work is licensed under a Creative Commons Attribution 4.0 International License.