For Professional Career

Introduction to
Auditing MCQs
FPSC, PPSC, NTS, UTS, PTS, OTS, ETC…
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 Audit MCQ # 02
Systematic examination of accounts by an independent qualified
person for issuing report to intend user/shareholders called:
Audit Audit report

vouching Inspection

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 Audit MCQ # 03
Definition of AUDIT states that auditor is:

Person that evaluate Internal

Part of Client Organisation
Control

Internal Auditor Independent Person

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 Audit MCQ # 04
An independent examination of financial information of any organization,
whether profit oriented or not, irrespective of its legal form or size Called :

Examination Inspection

Audit Analysis

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 Audit MCQ # 05
Which type of audit examines the reliability and integrity of the
accounting records:
Financial Information

Informational System Operational

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 Audit MCQ # 06
Objective of Audit depend on:

Selection of Auditor Frauds & Errors

Types of Audit Expression of opinion

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 Audit MCQ # 07
In scope of audit which of the matter is considered:

Audit Procedure Timing of Audit

Nature of Audit Report Internal Control

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 Audit MCQ # 08
Type of Audit on the basis if time:

Interim Audit Continuous Audit

Final Audit All of above

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 Audit conducting during the period

Audit that remains continue during

Audit the whole period

Auditing conducting after the

completion of accounting period

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 Audit MCQ # 09
Types of Audit on the basis of theory:

Statutory & Government Private

Internal All of the above

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 A statutory audit is a legally required
review of the accuracy of a company's
CA or government's financial statements
Statutory
Audit
and records

Private audit are carried out at the

Not Compulsory
behest of the interested parties and
Private Types
CA Audit
not to fulfill statutory requirements. of Audit
Internal auditing is an independent,
on the
Management objective assurance and consulting activity Internal basis of
designed to add value to and improve an Audit
organization's operations. Theory
The government audit is the means through which public
management is verified and controlled. Their activity and
Type of Cont.… Audit economy are analyzed, which work around efficiency and
Government
transparency, always acting in accordance with the relevant Audit
legal provisions applicable to the specific case.

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 Audit MCQ # 10
Types of Audit on the basis of purpose

Management Cost

Special All of above

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Audit which is concerned with the function of Management
management Audit

Types of
Audit which is concerned with the cost of goods and
Audit on
Cost Audit
services the basis
of
Purpose
Audit which is conducted on the direction of SECP, FBR or any
other authority Special Audit

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 Audit MCQ # 11
Audit which is concerned with the checking of B/S, Journal,
Ledger & supporting documents is called:
Final Audit/Balance Sheet Management Audit
Audit

Cost Audit Non of the above

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 Audit MCQ # 12
Audit which is concerned with the checking of Income &
Expenditure is called:
Proprietary Audit Cost Audit

Management Audit All of the above

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 Audit MCQ # 13
Audit of the same company which is conducted by 2 audited
firms called:
Cost Audit Joint Audit

Proprietary Audit All of the above

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 Audit MCQ # 14
Which type of audit is expensive:

Interim Audit Continuous Audit

Final Audit All of the above

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 Audit MCQ # 15
For which type of company continuous audit is necessary:

Small Scale Co. Cartage Industries

Large Scale Co. All of the above

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 Audit MCQ # 16
Continuous audit support companies in:

Reducing Frauds & Errors Reducing Frauds

Reducing Errors None

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 Audit MCQ # 17
Which type of audit is effective when internal control system is
weak:
Final Audit Continuous Audit

Interim Audit None

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 Audit MCQ # 18
Primary purpose of interim audit is:

Declare Interim Dividend Timely Reporting

Reduce Fraud None of above

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 Audit MCQ # 19
Which type of audit is compulsory by Government:

Statutory Management

Cost All of above

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 Audit MCQ # 20
Which type of audit is necessary under the companies ordinance
1984:
Statutory Cost

Management All of above

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 Audit MCQ # 20
Funds which are maintained to meet emergency or unforeseen
events called:
Contingency Funds General Funds

Consolidated Funds Non of the Above

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 Audit MCQ # 21
For management audit, auditor must be expert in:

All function of business Only knowledge of Accounting

Only knowledge of Audit Non of the Above

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 Audit MCQ # 22
Characteristics of auditing include all of the following except:

Evidence Collection System Developments

Only knowledge of Audit Non of the Above

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 Audit MCQ # 23
Financial Statements are the preparation of:

Internal Auditor of the

Management of the company
company

Board of Director Shareholders of the company

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 Audit MCQ # 24
Auditors of Financial Statements can be classified into
categories:
5 4

3 2

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 Types of Financial Statements Analysis 2 Types

From the stand From the stand

point of user point of time

Dynamic / Static / Vertical

Internal Analysis External Analysis
Horizontal Analysis Analysis

Management Outsiders Time Series Analysis Point of Time

Financial Efficiency Creditors
Comparison Current
Operational Efficiency Banks Year

Base Year No. of

Management Efficiency Investors ETC…. years Ratio

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 Audit MCQ # 25
When deterring materiality level auditors should consider:

Prior Years Error Prior Year FS

Interim Financial Statement All of above

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