Statutory Audit Pakistan MCQs 2026

Statutory Audit Pakistan: Branch audit Pakistan can be defined as

1. A foreign company branch accounts audited and filed separately ✓
2. B branches never audited ✓
3. C only head office in foreign country ✓
4. D branch exempt from all laws ✓

Auditor remuneration in the context of Statutory Audit Pakistan refers to

1. A fixed by client CEO secretly ✓
2. B auditor sets any fee unilaterally ✓
3. C determined in general meeting or as authorized in articles ✓
4. D never disclosed ✓

Which statement about Secretarial audit overlap is correct

1. A company secretary compliance separate from financial audit but related governance ✓
2. B secretary audits financial statements instead of CA ✓
3. C no compliance function in companies ✓
4. D only audit inventory counts ✓

Regarding Audit of dormant company in Statutory Audit Pakistan, the accurate view is

1. A dormant company may have reduced audit requirement if meets criteria ✓
2. B always full audit regardless ✓
3. C never any filing ✓
4. D dormant means unlimited trading ✓

In Statutory Audit Pakistan, Related party disclosure audit primarily means

1. A ignore related parties completely ✓
2. B only tax related parties ✓
3. C no disclosure note needed ✓
4. D auditor verifies Companies Act and IFRS related party requirements ✓

Auditor rotation Pakistan in the context of Statutory Audit Pakistan refers to

1. A never rotate firm or partner ✓
2. B mandatory rotation of audit firm after specified period for listed companies ✓
3. C rotate only clerical staff ✓
4. D rotation every 100 years ✓

In Statutory Audit Pakistan, Removal of auditor before term primarily means

1. A CEO may remove silently overnight ✓
2. B requires special notice and opportunity for auditor to be heard ✓
3. C no notice to shareholders ✓
4. D auditor cannot respond ✓

Statutory Audit Pakistan: Auditor qualification Pakistan can be defined as

1. A chartered accountant holding valid ICAP practicing certificate generally required ✓
2. B any graduate without qualification ✓
3. C only engineer may audit ✓
4. D only lawyer without CA ✓

Regarding Penalty for non-audit in Statutory Audit Pakistan, the accurate view is

1. A company and officers may face fines for failing to appoint or file audit ✓
2. B no penalty exists ✓
3. C only auditor penalized for client failure ✓
4. D penalty is optional donation ✓

First auditor is best described as

1. A always appointed by SECP directly ✓
2. B appointed by board within thirty days of incorporation if not appointed in GM ✓
3. C never required for private company ✓
4. D appointed by bank only ✓

Resignation of auditor is best described as

1. A leave without communication ✓
2. B destroy working papers on resignation day ✓
3. C no obligation to inform SECP ✓
4. D auditor resigning must file notice and may need to state reasons ✓

In Statutory Audit Pakistan, Statutory auditor liability primarily means

1. A never liable for any mistake ✓
2. B only criminal never civil ✓
3. C may be liable for negligence to company and sometimes third parties ✓
4. D immune if client requested clean opinion ✓

Statutory Audit Pakistan: Small company audit exemption can be defined as

1. A certain small companies may qualify for reduced requirements per rules ✓
2. B all companies exempt always ✓
3. C no SECP rules on size threshold ✓
4. D only multinational exempt ✓

Regarding Audit of listed companies in Statutory Audit Pakistan, the accurate view is

1. A same as sole trader always ✓
2. B no additional disclosure ✓
3. C no engagement quality review ✓
4. D additional requirements including corporate governance code compliance ✓

Directors report and audit is best described as

1. A directors report never reviewed ✓
2. B auditor considers consistency with financial statements ✓
3. C auditor writes directors report entirely alone ✓
4. D only balance sheet audited not report ✓

In Statutory Audit Pakistan, True and fair under Companies Act primarily means

1. A only true legal compliance never fair ✓
2. B auditor guarantees future profits ✓
3. C directors and auditor responsible for fair presentation ✓
4. D fair view replaced by tax view only ✓

Which statement about Companies Act 2017 audit requirement is correct

1. A only public companies ✓
2. B only companies with profit ✓
3. C audit optional for all ✓
4. D every company must have annual audit of financial statements ✓

Auditor appointment Pakistan is best described as

1. A only SECP appoints always ✓
2. B only CEO appoints permanently ✓
3. C never removed once appointed ✓
4. D appointed in general meeting except first auditor by directors ✓

Auditor access to records in the context of Statutory Audit Pakistan refers to

1. A only one hour per year ✓
2. B right to access books accounts and vouchers at all times ✓
3. C only with CEO personal approval each page ✓
4. D no access to bank statements ✓

Which statement about Auditor report filing SECP is correct

1. A never file with SECP ✓
2. B audited financial statements filed with registrar within prescribed time ✓
3. C only file marketing brochure ✓
4. D audit report optional for filing ✓