Day: October 18, 2026

The result of a substantive audit test at Alex Manufacturing Ltd is set out below.

The materiality threshold set for substantive tests was £1,000.

For the result below, select the action to be taken by the audit senior.

• No misstatements found in inventory valuation

Select ONE answer:

1. Refer to a senior colleague
2. Redo the substantive test
3. Draw conclusion
4. Extend sample

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 – No misstatements are found therefore the appropriate action would be to draw a conclusion.
4. Not correct

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