Accounting Multiple Choice Question – 15 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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