Compliance Audit MCQs 2026

Which statement about Contract compliance audit is correct

1. Aonly audit CEO speech✓
2. Bignore milestone deliverables✓
3. Conly audit stationery✓
4. Dverifying performance against donor or government contract terms✓

Regarding Compliance audit in NGOs in Compliance Audit, the accurate view is

1. ANGOs exempt from all compliance✓
2. Bdonor requirements for fund utilization and reporting✓
3. Conly profit motive entities✓
4. Dnever audited for grants✓

SECP compliance certificate in the context of Compliance Audit refers to

1. Aauditor signs compliance certificate always✓
2. Bnever required for listed companies✓
3. Ccompany secretary or CEO certifies compliance with corporate governance code✓
4. Donly for sole proprietors✓

In Compliance Audit, Compliance criteria primarily means

1. Aauditor personal preferences✓
2. Blaws regulations policies or contract terms used as benchmark✓
3. Ccompetitor secret strategy✓
4. Drandom internet advice✓

Which statement about Tax compliance review is correct

1. Asame as transfer pricing study always✓
2. Bonly Zakat never income tax✓
3. Cnever review withholding✓
4. Devaluating whether entity met tax filing and payment obligations✓

Which statement about Compliance vs substantive audit is correct

1. Aidentical always✓
2. Bcompliance never used in audit✓
3. Csubstantive only for NGOs✓
4. Dcompliance tests adherence substantive tests monetary misstatement✓

In Compliance Audit, Negative compliance finding primarily means

1. Areporting instances of non-compliance with criteria✓
2. Bhide all violations✓
3. Conly report compliance never exceptions✓
4. Dmodify FS opinion always for minor compliance✓

A key aspect of Agreed criteria in compliance audit is that it involves

1. Acriteria invented after fieldwork secretly✓
2. Bcriteria identified in engagement letter before work begins✓
3. Cauditor sets any criteria unilaterally without user✓
4. Dno written terms needed✓

Anti-money laundering compliance in the context of Compliance Audit refers to

1. Aonly manufacturing firms always✓
2. Bnever applies in Pakistan✓
3. Conly audit fixed assets✓
4. Dfinancial institutions audit KYC and suspicious transaction reporting✓

Which statement about Data protection compliance is correct

1. Anever relevant to audit✓
2. Bonly EU companies✓
3. Cemerging area reviewing personal data handling practices✓
4. Dignore all digital records✓

A key aspect of Regulatory compliance audit is that it involves

1. Aonly ISO culinary standards✓
2. Bonly sports league rules unless engaged✓
3. Cnever banking prudential✓
4. Dfocus on sector regulator requirements such as SECP or SBP✓

Compliance Audit: Environmental compliance audit can be defined as

1. Aassessing adherence to environmental laws and permits✓
2. Bonly financial ratios✓
3. Conly employee dress code unless EHS engaged✓
4. Dnever Pakistan EPA rules✓

Regarding Labor law compliance audit in Compliance Audit, the accurate view is

1. Achecking wages hours safety and social security compliance✓
2. Bonly audit inventory obsolescence✓
3. Conly marketing compliance✓
4. Dignore factory acts✓

A key aspect of Internal control compliance is that it involves

1. Aonly read mission statement✓
2. Bonly interview receptionist once✓
3. Ctesting whether controls operated as designed throughout period✓
4. Dnever test authorization✓

A key aspect of Compliance audit sampling is that it involves

1. Asample transactions to test compliance rate with policy✓
2. Balways 100 percent of all laws globally✓
3. Cnever sample in compliance✓
4. Donly judgment never documentation✓

Compliance Audit: Follow-up compliance audit can be defined as

1. Are-testing prior period non-compliance areas✓
2. Bnever revisit✓
3. Conly audit new products✓
4. Dignore repeat violations✓

Regarding Compliance risk assessment in Compliance Audit, the accurate view is

1. Aassume no laws apply✓
2. Bidentifying laws and regulations applicable to entity operations✓
3. Conly one generic law worldwide✓
4. Dignore industry specific rules✓

Whistleblower compliance in the context of Compliance Audit refers to

1. Aprohibit all whistleblowing✓
2. Bevaluating whether entity policy meets legal and governance expectations✓
3. Cno policy needed ever✓
4. Donly external auditor handles all tips✓

In Compliance Audit, Compliance audit primarily means

1. Aonly expresses opinion on profit trend✓
2. Bonly product taste testing✓
3. Cobtaining evidence about whether activities comply with criteria✓
4. Donly office decoration standards✓

Compliance Audit: Compliance audit report can be defined as

1. Aalways same as audit opinion on FS✓
2. Bnever negative finding possible✓
3. Cpositive or negative conclusion on compliance with specified criteria✓
4. Donly oral never written✓