Accounting Multiple Choice Question – 21 August 2026

Which ONE of the following options is a reason why sales are often verified by testing the internal controls in place over sales?

Select ONE answer:

1. There are usually too many individual transactions to test them individually
2. Sales constitute a high volume of similar transactions, which are suitable for controls testing
3. Controls over sales in a company are non-existent
4. Because there are so many individual transactions, there is a significant risk that sales are misstated

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 – Option 2 is correct – that sales constitute a high volume of similar transactions and are hence suitable to controls testing. Option1 cannot be used as a reason for testing internal controls over sales – however many transactions there are, if controls appear to be deficient, then those transactions will need to be subjected to tests of detail. Option 4 is incorrect as where there is a high risk of misstatement, substantive procedures should be used.
3. Not correct
4. Not correct

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