Tag: Topic 2

For the following description below, select whether they describe analytical review, monetary unit sampling, block selection or systematic selection.

• Alex is checking whether purchase invoices have been authorised for payment. He has selected all the November purchase invoices as his sample and has reviewed them for an authorisation signature.

Select ONE answer:

1. monetary unit sampling
2. block selection
3. systematic selection
4. analytical review

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 – Systematic selection involves selecting items using a constant interval between selections, the first interval having a random start.
3. Not correct
4. Not correct

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

For the following description below, select whether they describe analytical review, monetary unit sampling, block selection or systematic selection.

• Peter is auditing trade accounts receivable. Materiality is £25,000. The sample is selected by choosing balances that contain each 25,000th £1 on a cumulative basis.

Select ONE answer:

1. monetary unit sampling
2. block selection
3. systematic selection
4. analytical review

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 – Systematic selection involves selecting items using a constant interval between selections, the first interval having a random start.
2. Not correct
3. Not correct
4. Not correct

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

For the statement below, select whether it is true, false, of no importance, or it depends on the size of the company with respect to test data.

• Test data can be used to help calculate ratios.

Select ONE answer:

1. True
2. Of no importance
3. False
4. It depends on the size of the company

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 – Audit software (not test data) can be used to help in the calculation of ratios.
4. Not correct

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

For the statement below, select whether it is true, false, of no importance, or it depends on the size of the company with respect to test data.

• Test data can include real data and dummy data.

Select ONE answer:

1. False
2. True
3. Of no importance
4. It depends on the size of the company

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
3. Not correct
4. Not correct

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

For the statement below, select whether it is true, false, of no importance, or it depends on the size of the company with respect to test data.

• Test data are a type of substantive procedure.

Select ONE answer:

1. False
2. True
3. Of no importance
4. It depends on the size of the company

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 – Test data are used to test controls.
2. Not correct
3. Not correct
4. Not correct

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