Correct Answer:
D. The members or shareholders of the company
The report is addressed as required by circumstances, usually to the shareholders or members.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
An auditor’s report on the financial statements of a company is generally addressed to:
Related MCQs
Under the accrual basis of accounting, revenue is recognized:
A.
When it is earned, regardless of when cash is received
B.
Only when cash is received
C.
Only when the invoice is paid
D.
At the end of the year only
Correct answer is:
A. When it is earned, regardless of when cash is received
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The Auditor-General of Pakistan is appointed by:
A.
The Prime Minister
B.
The Chief Justice
C.
The Speaker of the National Assembly
D.
The President
Correct answer is:
D. The President
Do you agree with this answer?
An expansionary fiscal policy involves:
A.
Reducing government spending and raising taxes
B.
Increasing government spending or cutting taxes
C.
Raising interest rates
D.
Selling government bonds only
Correct answer is:
B. Increasing government spending or cutting taxes
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A Draft Audit Para (DAP) or audit observation is:
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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Re-appropriation means:
A.
Transfer of funds from one head or sub-head to another within the same grant
B.
Returning all money to the treasury
C.
Taking a new foreign loan
D.
Writing off bad debts
Correct answer is:
A. Transfer of funds from one head or sub-head to another within the same grant
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A by-product is a product that:
A.
Has the greatest sales value of all products
B.
Is produced after the split-off by choice
C.
Cannot be sold
D.
Has a relatively minor sales value compared with the main product
Correct answer is:
D. Has a relatively minor sales value compared with the main product
Do you agree with this answer?
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