Types of Audit MCQs 2026

Which statement about Forensic audit type is correct

1. Aroutine annual FS audit same scope✓
2. Bonly bank reconciliation by clerk✓
3. Conly fixed asset tagging without investigation✓
4. Dinvestigation into specific suspected fraud or dispute✓

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

1. Aonly Pakistan AGP term✓
2. Bcombined audit of financial statements and compliance with grant requirements✓
3. Cnever includes compliance testing✓
4. Donly for listed companies✓

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

1. Aauditor verifies all balances✓
2. Bincludes opinion paragraph✓
3. Cassisting in presenting financial information without assurance✓
4. Dsame as audit with less samples✓

In Types of Audit, Special purpose audit primarily means

1. Aalways general purpose FS✓
2. Bnever limited scope✓
3. Caudit on specific financial information or compliance matter✓
4. Donly for NGOs never companies✓

Concurrent audit is best described as

1. Acontinuous or frequent audit during the year especially in banks✓
2. Bonce every ten years only✓
3. Conly after company liquidated✓
4. Donly for sole proprietorship never banks✓

A key aspect of Operational audit is that it involves

1. Aonly balance sheet audit✓
2. Bonly share registration✓
3. Conly trademark search✓
4. Dreview of efficiency and effectiveness of operations✓

Internal audit is best described as

1. Aexternal statutory audit same thing always✓
2. Bonly tax filing service✓
3. Conly product design review✓
4. Dongoing independent appraisal function within or for organization✓

In Types of Audit, Voluntary audit primarily means

1. Aaudit not legally required but requested by owners or lenders✓
2. Ball audits are voluntary in Pakistan✓
3. Cpartnership with turnover always exempt✓
4. Dnever requested by banks✓

Statutory audit in the context of Types of Audit refers to

1. Aaudit required by law such as Companies Act for companies✓
2. Boptional volunteer review only✓
3. Conly internal memo check✓
4. Donly marketing survey✓

Compliance audit is best described as

1. Aonly profit calculation✓
2. Bonly brand design review✓
3. Conly sports event planning✓
4. Dassessing adherence to laws regulations and policies✓

A key aspect of Performance audit is that it involves

1. Aonly private company tax return✓
2. Bonly payroll for one employee✓
3. Conly inventory sticker check✓
4. Dpublic sector examination of economy efficiency and effectiveness of programs✓

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

1. Aauditor performs procedures and reports findings without opinion✓
2. Bexpresses full audit opinion always✓
3. Cguarantees accuracy of FS✓
4. Dsame as compilation with assurance✓

A key aspect of Review engagement is that it involves

1. Asame work as audit✓
2. Bnegative assurance never given✓
3. Climited assurance through inquiry and analytical procedures primarily✓
4. Dincludes full confirmation program always✓

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

1. Aonly applies in Pakistan universally by law✓
2. Baudit of financial statements and internal control over reporting together✓
3. Cnever includes IT controls✓
4. Donly tax audit scope✓

Joint audit in the context of Types of Audit refers to

1. Aone firm hidden subcontractor only✓
2. Billegal in all cases✓
3. Conly for NGOs never listed companies✓
4. Dtwo or more audit firms share responsibility for single entity audit✓

Which statement about Branch audit is correct

1. Aignore branches always✓
2. Bonly head office cash count✓
3. Cbranch never material✓
4. Daudit of branch accounts consolidated into head office FS✓

Interim audit is best described as

1. Aonly after annual report published✓
2. Baudit work performed during the year before year-end✓
3. Creplaces final audit always✓
4. Dno documentation required✓

Which statement about Tax audit FBR is correct

1. Asame as company statutory audit always✓
2. Bonly sales marketing review✓
3. Cexamination of taxpayer records under Income Tax Ordinance✓
4. Dvoluntary only never mandated✓

Cost audit is best described as

1. Areview of cost records and cost statements for regulated industries✓
2. Bonly audit of cash book✓
3. Conly HR files✓
4. Donly advertising contracts✓

Continuous auditing in the context of Types of Audit refers to

1. Aidentical to annual paper audit only✓
2. Bprohibited by ISA✓
3. Cusing technology for ongoing automated audit tests throughout period✓
4. Donly for marketing analytics✓