Statutory Audit Pakistan MCQs 2026

First auditor is best described as

1. Aalways appointed by SECP directly✓
2. Bappointed by board within thirty days of incorporation if not appointed in GM✓
3. Cnever required for private company✓
4. Dappointed by bank only✓

Resignation of auditor is best described as

1. Aleave without communication✓
2. Bdestroy working papers on resignation day✓
3. Cno obligation to inform SECP✓
4. Dauditor resigning must file notice and may need to state reasons✓

In Statutory Audit Pakistan, Statutory auditor liability primarily means

1. Anever liable for any mistake✓
2. Bonly criminal never civil✓
3. Cmay be liable for negligence to company and sometimes third parties✓
4. Dimmune if client requested clean opinion✓

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

1. Acertain small companies may qualify for reduced requirements per rules✓
2. Ball companies exempt always✓
3. Cno SECP rules on size threshold✓
4. Donly multinational exempt✓

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

1. Asame as sole trader always✓
2. Bno additional disclosure✓
3. Cno engagement quality review✓
4. Dadditional requirements including corporate governance code compliance✓

Directors report and audit is best described as

1. Adirectors report never reviewed✓
2. Bauditor considers consistency with financial statements✓
3. Cauditor writes directors report entirely alone✓
4. Donly balance sheet audited not report✓

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

1. Aonly true legal compliance never fair✓
2. Bauditor guarantees future profits✓
3. Cdirectors and auditor responsible for fair presentation✓
4. Dfair view replaced by tax view only✓

Which statement about Companies Act 2017 audit requirement is correct

1. Aonly public companies✓
2. Bonly companies with profit✓
3. Caudit optional for all✓
4. Devery company must have annual audit of financial statements✓

Auditor appointment Pakistan is best described as

1. Aonly SECP appoints always✓
2. Bonly CEO appoints permanently✓
3. Cnever removed once appointed✓
4. Dappointed in general meeting except first auditor by directors✓

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

1. Aonly one hour per year✓
2. Bright to access books accounts and vouchers at all times✓
3. Conly with CEO personal approval each page✓
4. Dno access to bank statements✓

Which statement about Auditor report filing SECP is correct

1. Anever file with SECP✓
2. Baudited financial statements filed with registrar within prescribed time✓
3. Conly file marketing brochure✓
4. Daudit report optional for filing✓

Statutory Audit Pakistan: Branch audit Pakistan can be defined as

1. Aforeign company branch accounts audited and filed separately✓
2. Bbranches never audited✓
3. Conly head office in foreign country✓
4. Dbranch exempt from all laws✓

Which statement about Secretarial audit overlap is correct

1. Acompany secretary compliance separate from financial audit but related governance✓
2. Bsecretary audits financial statements instead of CA✓
3. Cno compliance function in companies✓
4. Donly audit inventory counts✓

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

1. Adormant company may have reduced audit requirement if meets criteria✓
2. Balways full audit regardless✓
3. Cnever any filing✓
4. Ddormant means unlimited trading✓

Statutory Audit Pakistan: Auditor qualification Pakistan can be defined as

1. Achartered accountant holding valid ICAP practicing certificate generally required✓
2. Bany graduate without qualification✓
3. Conly engineer may audit✓
4. Donly lawyer without CA✓

Auditor remuneration in the context of Statutory Audit Pakistan refers to

1. Afixed by client CEO secretly✓
2. Bauditor sets any fee unilaterally✓
3. Cdetermined in general meeting or as authorized in articles✓
4. Dnever disclosed✓

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

1. ACEO may remove silently overnight✓
2. Brequires special notice and opportunity for auditor to be heard✓
3. Cno notice to shareholders✓
4. Dauditor cannot respond✓

In Statutory Audit Pakistan, Related party disclosure audit primarily means

1. Aignore related parties completely✓
2. Bonly tax related parties✓
3. Cno disclosure note needed✓
4. Dauditor verifies Companies Act and IFRS related party requirements✓

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

1. Acompany and officers may face fines for failing to appoint or file audit✓
2. Bno penalty exists✓
3. Conly auditor penalized for client failure✓
4. Dpenalty is optional donation✓

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

1. Anever rotate firm or partner✓
2. Bmandatory rotation of audit firm after specified period for listed companies✓
3. Crotate only clerical staff✓
4. Drotation every 100 years✓