Accounting Multiple Choice Question – 24 August 2026

The results of substantive tests in relation to non-current assets at Alex Manufacturing Ltd are set out below.

The materiality threshold set for these tests was £5,000.

For each of the following results, select the action which should be taken by the audit senior.

• A sample of three assets, valued at £2,000 in total, had been excluded from the non-current asset register and the financial statements.

Select ONE answer:

1. Extend sample
2. Draw conclusion
3. Refer to a senior colleague
4. Refer to a junior colleague

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 1

1. Correct – Extending the sample of assets inspected will test if the misstatement found to date is an anomaly or represents a larger misstatement.
2. Not correct
3. Not correct
4. Not correct

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