Accounting Multiple Choice Question – 17 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.

• A balance which is overstated may be agreed because it favours the respondent

Select ONE answer:

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

1. Not correct
2. Correct – A respondent will agree to an overstated balance if that is direct confirmation in respect of a payables balance (he would disagree if the amount he owed – ie, a receivables balance – were overstated).
3. Not correct
4. Not correct

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