Accounting Multiple Choice Question – 18 June 2026

In accordance with ISAs 315 and 520, select whether analytical procedures are not allowed, for PLCs only, compulsory or optional in each of the following circumstances.

• At the risk assessment stage of the audit

Select ONE answer:

1. not allowed
2. for PLCs only
3. compulsory
4. optional

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 – In accordance with ISA 315, analytical procedures must be performed at the risk assessment stage of an audit. In line with ISA 520, they must also be applied at the overall review stage of the audit and may additionally be used as substantive procedures.
4. Not correct

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