Ethics in Accounting MCQs 2026

SECP in accounting refers to

1. A Securities regulator overseeing corporate reporting in Pakistan ✓
2. B Institute of Chartered Accountants of Pakistan ✓
3. C Pakistan Standards of Auditing for government ✓
4. D transactions with connected persons must be disclosed ✓

Companies Act 2017 in accounting refers to

1. A Standards on Auditing applicable in Pakistan ✓
2. B interim financial reporting requirement for listed firms ✓
3. C management report accompanying financial statements ✓
4. D primary corporate law governing companies ✓

NFRA in accounting refers to

1. A Pakistan Standards of Auditing for government ✓
2. B transactions with connected persons must be disclosed ✓
3. C audit required by law for certain entities ✓
4. D National Financial Reporting Authority ✓

ICAP in accounting refers to

1. A interim financial reporting requirement for listed firms ✓
2. B Institute of Chartered Accountants of Pakistan ✓
3. C management report accompanying financial statements ✓
4. D Securities regulator overseeing corporate reporting in Pakistan ✓

SAF in accounting refers to

1. A transactions with connected persons must be disclosed ✓
2. B audit required by law for certain entities ✓
3. C primary corporate law governing companies ✓
4. D Standards on Auditing applicable in Pakistan ✓

PSAS in accounting refers to

1. A management report accompanying financial statements ✓
2. B Pakistan Standards of Auditing for government ✓
3. C Securities regulator overseeing corporate reporting in Pakistan ✓
4. D National Financial Reporting Authority ✓

Quarterly reporting in accounting refers to

1. A interim financial reporting requirement for listed firms ✓
2. B audit required by law for certain entities ✓
3. C primary corporate law governing companies ✓
4. D Institute of Chartered Accountants of Pakistan ✓

Related party disclosure in accounting refers to

1. A Securities regulator overseeing corporate reporting in Pakistan ✓
2. B National Financial Reporting Authority ✓
3. C transactions with connected persons must be disclosed ✓
4. D Standards on Auditing applicable in Pakistan ✓

Directors report in accounting refers to

1. A primary corporate law governing companies ✓
2. B Institute of Chartered Accountants of Pakistan ✓
3. C Pakistan Standards of Auditing for government ✓
4. D management report accompanying financial statements ✓

Statutory audit in accounting refers to

1. A National Financial Reporting Authority ✓
2. B Standards on Auditing applicable in Pakistan ✓
3. C interim financial reporting requirement for listed firms ✓
4. D audit required by law for certain entities ✓

Pakistan AS scenario 13: a Pakistani SECP listed company must correctly handle related party disclosure

1. A ignore the transaction until next fiscal year ✓
2. B record only one side of the entry ✓
3. C post directly to retained earnings without analysis ✓
4. D debit and credit both affected so the equation stays balanced ✓

Professional independence in accounting refers to

1. A aggressive but potentially misleading accounting choices ✓
2. B freedom from influences compromising professional judgment ✓
3. C pressure, opportunity and rationalization enabling fraud ✓
4. D periodic change of audit partner or firm ✓

Conflict of interest in accounting refers to

1. A smoothing or manipulating reported earnings ✓
2. B ethical rules binding chartered accountants in Pakistan ✓
3. C not disclosing client information without permission ✓
4. D situation where personal interest could bias duties ✓

Whistleblowing in accounting refers to

1. A pressure, opportunity and rationalization enabling fraud ✓
2. B reporting suspected wrongdoing through proper channels ✓
3. C periodic change of audit partner or firm ✓
4. D honest and straightforward professional conduct ✓

Creative accounting in accounting refers to

1. A ethical rules binding chartered accountants in Pakistan ✓
2. B not disclosing client information without permission ✓
3. C aggressive but potentially misleading accounting choices ✓
4. D freedom from influences compromising professional judgment ✓

Earnings management in accounting refers to

1. A smoothing or manipulating reported earnings ✓
2. B periodic change of audit partner or firm ✓
3. C honest and straightforward professional conduct ✓
4. D situation where personal interest could bias duties ✓

Fraud triangle in accounting refers to

1. A not disclosing client information without permission ✓
2. B freedom from influences compromising professional judgment ✓
3. C pressure, opportunity and rationalization enabling fraud ✓
4. D reporting suspected wrongdoing through proper channels ✓

Code of ethics ICAP in accounting refers to

1. A honest and straightforward professional conduct ✓
2. B ethical rules binding chartered accountants in Pakistan ✓
3. C situation where personal interest could bias duties ✓
4. D aggressive but potentially misleading accounting choices ✓

Auditor rotation in accounting refers to

1. A freedom from influences compromising professional judgment ✓
2. B periodic change of audit partner or firm ✓
3. C reporting suspected wrongdoing through proper channels ✓
4. D smoothing or manipulating reported earnings ✓

Confidentiality in accounting refers to

1. A situation where personal interest could bias duties ✓
2. B aggressive but potentially misleading accounting choices ✓
3. C not disclosing client information without permission ✓
4. D pressure, opportunity and rationalization enabling fraud ✓

Integrity in accounting refers to

1. A reporting suspected wrongdoing through proper channels ✓
2. B smoothing or manipulating reported earnings ✓
3. C ethical rules binding chartered accountants in Pakistan ✓
4. D honest and straightforward professional conduct ✓