Accounting Multiple Choice Question – 27 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.

• In a sample of 20 supplier statement reconciliations, statements were unavailable for 10 suppliers. Statements were available for 7 of these 10 suppliers in the previous year.

Select ONE answer:

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

1. Not correct
2. Not correct
3. Not correct
4. Correct – Missing supplier statements (which should make the auditor suspicious) should be referred to a senior colleague, so that this is investigated and alternative procedures designed if necessary.

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