Accounting Multiple Choice Question – 22 June 2026

Which ONE of the following circumstances would reduce the reliability of the results of analytical procedures?

Select ONE answer:

1. Detailed information is available analysed by department
2. Budgeted figures in the past have proved to be highly realistic
3. Significant deficiencies in the internal control system have been identified in the past
4. Reliable industry data are available

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 – Deficiencies in internal controls reduce the reliability of the basic accounting information which will be used in the analytical procedures.
4. Not correct

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