Tag: Accounting

Which ONE of the following is a reason why organisations need to have an effective system of control?

To help the organisation in …..

Select ONE answer:

1. maximising its profitability
2. managing its assets and liabilities
3. cutting down the time needed for the audit
4. complying with laws and regulations

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 => Complying with laws and regulations is a primary reason why organisations need an effective system of control. The other options may result from that effective internal control system.

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which ONE of the following is a reason why organisations need to have an effective system of control?

To help the organisation in …..

Select ONE answer:

1. maximising its profitability
2. managing its assets and liabilities
3. minimising business risks
4. cutting down the time needed for the audit

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 => Minimising business risks is a primary reason why organisations need an effective system of control. The other options may result from that effective internal control system.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

In the case stated below, select whether the control risk is higher than normal, lower than normal, the same or no impact

• Entry to the inventory storeroom is only for authorised personnel.

Select ONE answer:

1. Higher Than Normal
2. Lower Than Normal
3. No Impact
4. The Same

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 => The safeguarding of the physical security of the inventories is a strength which renders the control risk lower than normal.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

In the case stated below, select whether the control risk is higher than normal, lower than normal, the same or no impact

– Management often overrides internal controls.

Select ONE answer:

1. Higher Than Normal
2. No Impact
3. The Same
4. Lower Than Normal

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 => Management overriding internal controls lead to an increase in control risk (higher than normal).
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

In the case stated below, select whether the control risk is higher than normal, lower than normal, the same or no impact

– The payables ledger is NOT regularly reconciled to the payables ledger control account.

Select ONE answer:

1. No Impact
2. The Same
3. Lower Than Normal
4. Higher Than Normal

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 =>   A lack of regular reconciliations lead to an increase in control risk (higher than normal). 

This work is licensed under a Creative Commons Attribution 4.0 International License.