November 13, 2026
A.
The Securities and Exchange Commission
B.
The Pakistan Bureau of Statistics
C.
The Election Commission
D.
The Controller General of Accounts
Correct answer is:
D. The Controller General of Accounts
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The CGA is the accounting authority for federal government accounts in Pakistan.
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November 13, 2026
A.
Economy, efficiency and effectiveness
B.
Equity, ethics and elections
C.
Estimates, expenses and earnings
D.
Education, employment and environment
Correct answer is:
A. Economy, efficiency and effectiveness
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Economy is minimizing cost, efficiency is output per input and effectiveness is achieving objectives.
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November 13, 2026
A.
In the like manner and on the like grounds as a judge of the Supreme Court
B.
By any minister
C.
By the Prime Minister alone
D.
By the Chief Secretary
Correct answer is:
A. In the like manner and on the like grounds as a judge of the Supreme Court
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Article 168 protects the Auditor-General's independence by giving the same removal safeguards as a Supreme Court judge.
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November 13, 2026
A.
Presentation of financial statements
B.
Inventories
C.
Leases
D.
Borrowing costs
Correct answer is:
A. Presentation of financial statements
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IPSAS 1 sets out the overall requirements for presenting general purpose financial statements.
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November 13, 2026
A.
It has adequate resources and control over its budget to perform its mandate
B.
It is financed by the audited entities
C.
It has no budget
D.
It depends on ministers for funds each month
Correct answer is:
A. It has adequate resources and control over its budget to perform its mandate
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Independence of funding protects the SAI from pressure by audited bodies.
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November 13, 2026
A.
Only federal taxes
B.
Only foreign aid
C.
Receipts and expenditure of local bodies for compliance with applicable laws and rules
D.
Only defense spending
Correct answer is:
C. Receipts and expenditure of local bodies for compliance with applicable laws and rules
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Local fund audit covers funds of local councils and similar bodies.
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November 13, 2026
A.
Only income tax
B.
All revenues received by the Federal Government, loans raised and money received in repayment of loans
C.
Only foreign aid
D.
Only trust money
Correct answer is:
B. All revenues received by the Federal Government, loans raised and money received in repayment of loans
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Article 78(1) provides that all revenues, loans and repayments form the Federal Consolidated Fund.
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November 13, 2026
A.
Paying salaries only
B.
Moneys received by the Government other than the Consolidated Fund, such as deposits and trust funds
C.
Voting on the budget
D.
Collecting customs duty
Correct answer is:
B. Moneys received by the Government other than the Consolidated Fund, such as deposits and trust funds
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These are funds held by government as banker or trustee, with different rules for withdrawal.
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November 13, 2026
A.
The accounts are perfect
B.
The auditor finds material errors or is unable to obtain sufficient evidence on specific items
C.
The department refuses to pay audit fees
D.
The budget is surplus
Correct answer is:
B. The auditor finds material errors or is unable to obtain sufficient evidence on specific items
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Qualifications highlight specific material issues without rejecting the whole accounts.
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November 13, 2026
A.
Payments approved with full documentation
B.
Competitive bidding with several bidders
C.
Payments split into smaller amounts to avoid approval limits
D.
Regular stock verification
Correct answer is:
C. Payments split into smaller amounts to avoid approval limits
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Splitting purchases to stay below approval or tender limits is a well-known red flag.
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November 13, 2026
A.
Obtaining the best outcome from resources spent, with economy, efficiency and effectiveness
B.
Spending as little as possible regardless of outcome
C.
Spending the entire budget
D.
Maximizing revenue only
Correct answer is:
A. Obtaining the best outcome from resources spent, with economy, efficiency and effectiveness
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It is about spending wisely, not just cheaply.
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November 13, 2026
A.
Increase the number of staff only
B.
Reduce the risk of error, fraud and misappropriation by dividing incompatible functions
C.
Avoid the need for budgets
D.
Speed up audits
Correct answer is:
B. Reduce the risk of error, fraud and misappropriation by dividing incompatible functions
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No single official should handle authorization, custody and recording of a transaction.
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November 13, 2026
A.
Exchange transactions
B.
Non-exchange transactions
C.
Capital transactions
D.
Contingent assets
Correct answer is:
B. Non-exchange transactions
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In non-exchange transactions an entity receives value without directly giving equal value in return.
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November 13, 2026
A.
Ignored
B.
Hidden in other accounts
C.
Regularized through an excess grant approved by the National Assembly
D.
Recovered from the Auditor-General
Correct answer is:
C. Regularized through an excess grant approved by the National Assembly
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Spending beyond a grant requires legislative regularization (Article 84).
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November 13, 2026
A.
Project to Improve Financial Reporting and Auditing
B.
Public Institution for Revenue Administration
C.
Planning Institute for Fiscal Reform and Accounting
D.
Project for Increasing Finance and Revenue Assessment
Correct answer is:
A. Project to Improve Financial Reporting and Auditing
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PIFRA was a reform program to improve government accounting, financial reporting and audit in Pakistan.
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November 13, 2026
A.
Only by their own accountants
B.
Only by tax inspectors
C.
Only by the police
D.
Chartered accountant firms appointed under law, and may also be subject to audit by the Auditor-General
Correct answer is:
D. Chartered accountant firms appointed under law, and may also be subject to audit by the Auditor-General
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SOEs usually have external commercial auditors, with additional audit by the SAI where the law provides.
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November 13, 2026
A.
A normal re-appropriation
B.
Dishonest use of public money for purposes other than intended
C.
A budget saving
D.
A tax refund
Correct answer is:
B. Dishonest use of public money for purposes other than intended
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It involves intentional diversion or misuse of funds.
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November 13, 2026
A.
Collecting income tax
B.
Regulating public procurement and making procurement rules
C.
Printing currency
D.
Auditing banks
Correct answer is:
B. Regulating public procurement and making procurement rules
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PPRA was established in 2002 to ensure transparency and competition in public procurement.
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November 13, 2026
A.
Verify the physical existence and proper record of stores and stock
B.
Count cash in the treasury
C.
Check payroll only
D.
Verify tax assessments
Correct answer is:
A. Verify the physical existence and proper record of stores and stock
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Physical verification protects public property from loss or misuse.
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November 13, 2026
A.
No cash is ever kept
B.
Cash is deposited daily with no records
C.
All payments are made in kind
D.
A fixed amount of cash is kept for petty expenses and replenished on submission of vouchers
Correct answer is:
D. A fixed amount of cash is kept for petty expenses and replenished on submission of vouchers
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The advance is restored to its original amount after accounting for expenses.
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November 13, 2026
A.
Only cash balances
B.
Only tax receipts
C.
Only salaries
D.
Details of its non-current assets such as land, buildings and vehicles
Correct answer is:
D. Details of its non-current assets such as land, buildings and vehicles
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Asset registers help control and safeguard public property.
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November 13, 2026
A.
A fund kept to meet urgent unforeseen expenditure
B.
A fund for planned salaries
C.
A fund for repayment of loans only
D.
A private fund of officers
Correct answer is:
A. A fund kept to meet urgent unforeseen expenditure
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It is used for unexpected spending, subject to later regularization by the legislature.
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November 13, 2026
A.
A final order of the court
B.
A budget estimate
C.
A finding sent by auditors to the department for reply before it is finalized
D.
A tax notice
Correct answer is:
C. A finding sent by auditors to the department for reply before it is finalized
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The department is given an opportunity to respond to audit observations.
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November 13, 2026
A.
Prepare the national budget
B.
Discuss and settle audit paras between audit and the department's Principal Accounting Officer
C.
Select new auditors
D.
Approve foreign loans
Correct answer is:
B. Discuss and settle audit paras between audit and the department's Principal Accounting Officer
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DAC meetings help resolve or settle audit observations before reporting to PAC.
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November 13, 2026
A.
The Minister
B.
The Secretary of the ministry or division
C.
The Auditor-General
D.
The Speaker
Correct answer is:
B. The Secretary of the ministry or division
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The PAO is responsible for accounting for funds of the ministry before PAC.
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Frequently Asked Questions What topics are covered in Accounting and Finance MCQs? This category covers auditing, financial accounting, cost and management accounting, financial management and analysis, public finance and budgeting, and public sector accounting and auditing.
Are these MCQs useful for FPSC, PPSC and CSS exams? Yes. The questions are written at a competitive-exam level and help with FPSC, PPSC, CSS, PMS and NTS preparation, especially for accounting, finance and audit related posts.
Do the MCQs include answers and explanations? Yes. Every question has a correct answer and a short explanation, and calculation questions show the working.
How should I practice accounting MCQs for exams? Start with one subcategory, attempt the questions without looking at the answers, then read the explanations for every wrong answer. Repeat weak topics until you score consistently.
Do these MCQs cover public sector auditing and IPSAS? Yes. The Public Sector Accounting and Auditing subcategory includes questions on IPSAS, INTOSAI, appropriation audit, the Public Accounts Committee and related topics.