Correct Answer:
C. Independence of mind and independence in appearance
Both independence of mind and independence in appearance are needed to maintain credibility.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Auditor independence consists of:
Related MCQs
Fund accounting is commonly used in the public sector because:
A.
Government has no assets
B.
All money is treated as one pool
C.
It avoids the need for budgets
D.
Resources are separated into funds according to purposes or legal restrictions
Correct answer is:
D. Resources are separated into funds according to purposes or legal restrictions
Do you agree with this answer?
State-owned enterprises (SOEs) in Pakistan are typically audited by:
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
Do you agree with this answer?
Financial independence of a Supreme Audit Institution means that:
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
Do you agree with this answer?
Dividend per share is Rs. 5 and market price per share is Rs. 100. The dividend yield is:
A.
20%
B.
0.5%
C.
5%
D.
50%
Correct answer is:
C. 5%
Do you agree with this answer?
A pure public good is characterized by:
A.
Non-rivalry and non-excludability
B.
Rivalry and excludability
C.
Rivalry and non-excludability
D.
Excludability only
Correct answer is:
A. Non-rivalry and non-excludability
Do you agree with this answer?
Beta measures:
A.
Unsystematic risk
B.
Liquidity of a security
C.
Systematic (market) risk of a security
D.
Dividend yield
Correct answer is:
C. Systematic (market) risk of a security
Do you agree with this answer?
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