Types of Audit MCQs 2026

Regarding Compilation engagement in Types of Audit, the accurate view is

1. A auditor verifies all balances ✓
2. B includes opinion paragraph ✓
3. C assisting in presenting financial information without assurance ✓
4. D same as audit with less samples ✓

Continuous auditing in the context of Types of Audit refers to

1. A identical to annual paper audit only ✓
2. B prohibited by ISA ✓
3. C using technology for ongoing automated audit tests throughout period ✓
4. D only for marketing analytics ✓

Cost audit is best described as

1. A review of cost records and cost statements for regulated industries ✓
2. B only audit of cash book ✓
3. C only HR files ✓
4. D only advertising contracts ✓

Which statement about Tax audit FBR is correct

1. A same as company statutory audit always ✓
2. B only sales marketing review ✓
3. C examination of taxpayer records under Income Tax Ordinance ✓
4. D voluntary only never mandated ✓

Types of Audit: Single audit of grants can be defined as

1. A only Pakistan AGP term ✓
2. B combined audit of financial statements and compliance with grant requirements ✓
3. C never includes compliance testing ✓
4. D only for listed companies ✓

In Types of Audit, Special purpose audit primarily means

1. A always general purpose FS ✓
2. B never limited scope ✓
3. C audit on specific financial information or compliance matter ✓
4. D only for NGOs never companies ✓

Concurrent audit is best described as

1. A continuous or frequent audit during the year especially in banks ✓
2. B once every ten years only ✓
3. C only after company liquidated ✓
4. D only for sole proprietorship never banks ✓

A key aspect of Operational audit is that it involves

1. A only balance sheet audit ✓
2. B only share registration ✓
3. C only trademark search ✓
4. D review of efficiency and effectiveness of operations ✓

Internal audit is best described as

1. A external statutory audit same thing always ✓
2. B only tax filing service ✓
3. C only product design review ✓
4. D ongoing independent appraisal function within or for organization ✓

In Types of Audit, Voluntary audit primarily means

1. A audit not legally required but requested by owners or lenders ✓
2. B all audits are voluntary in Pakistan ✓
3. C partnership with turnover always exempt ✓
4. D never requested by banks ✓

Statutory audit in the context of Types of Audit refers to

1. A audit required by law such as Companies Act for companies ✓
2. B optional volunteer review only ✓
3. C only internal memo check ✓
4. D only marketing survey ✓

Compliance audit is best described as

1. A only profit calculation ✓
2. B only brand design review ✓
3. C only sports event planning ✓
4. D assessing adherence to laws regulations and policies ✓

A key aspect of Performance audit is that it involves

1. A only private company tax return ✓
2. B only payroll for one employee ✓
3. C only inventory sticker check ✓
4. D public sector examination of economy efficiency and effectiveness of programs ✓

In Types of Audit, Agreed-upon procedures engagement primarily means

1. A auditor performs procedures and reports findings without opinion ✓
2. B expresses full audit opinion always ✓
3. C guarantees accuracy of FS ✓
4. D same as compilation with assurance ✓

A key aspect of Review engagement is that it involves

1. A same work as audit ✓
2. B negative assurance never given ✓
3. C limited assurance through inquiry and analytical procedures primarily ✓
4. D includes full confirmation program always ✓

Regarding Integrated audit in Types of Audit, the accurate view is

1. A only applies in Pakistan universally by law ✓
2. B audit of financial statements and internal control over reporting together ✓
3. C never includes IT controls ✓
4. D only tax audit scope ✓

Joint audit in the context of Types of Audit refers to

1. A one firm hidden subcontractor only ✓
2. B illegal in all cases ✓
3. C only for NGOs never listed companies ✓
4. D two or more audit firms share responsibility for single entity audit ✓

Which statement about Branch audit is correct

1. A ignore branches always ✓
2. B only head office cash count ✓
3. C branch never material ✓
4. D audit of branch accounts consolidated into head office FS ✓

Interim audit is best described as

1. A only after annual report published ✓
2. B audit work performed during the year before year-end ✓
3. C replaces final audit always ✓
4. D no documentation required ✓

Which statement about Forensic audit type is correct

1. A routine annual FS audit same scope ✓
2. B only bank reconciliation by clerk ✓
3. C only fixed asset tagging without investigation ✓
4. D investigation into specific suspected fraud or dispute ✓