Day: August 17, 2026

Accounting Multiple Choice Question – 17 August 2026

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
Photo by Serpstat on Pexels.com

In which ONE of the following situations should an auditor carry out a cash count?

Select ONE answer:

  1. A client has many cash floats, which are immaterial in total
  2. A client has poor controls over cash floats, which are immaterial in total
  3. An individual cash float is material
  4. The auditor does NOT suspect that a fraud has been committed in relation to immaterial cash floats

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 – The auditor should count an individual cash float which is material because he should test all material items. He should also count immaterial cash floats where he suspects that a fraud has been committed as although the individual floats are immaterial, the overall impact of such a fraud could be material to the financial statements if repeated over time.
  4. Not correct

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