Accounting Multiple Choice Question – 26 August 2026

The results of substantive tests in relation to trade payables at Alex Manufacturing Ltd are set out below.

The materiality threshold set for these tests was £17,000.

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

• Three goods inwards notes dated before the year end, relating to goods worth £16,000, were traced to purchase invoices that were included in the subsequent year and not provided for this year.

Select ONE answer:

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

1. Not correct
2. Not correct
3. Correct – For the misstatement in cut-off, the sample should be extended to measure the full extent of the cut-off misstatement.
4. Not correct

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