Correct Answer:
B. Financial audit and compliance audit
Regularity audit examines financial statements and compliance with laws and regulations.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
Regularity audit in the public sector comprises:
Related MCQs
A department has no opening WIP, completes 1,000 units and has 400 units in closing WIP that are 50% complete for conversion. Equivalent units for conversion cost are:
A.
1,200
B.
1,400
C.
1,000
D.
1,600
Correct answer is:
A. 1,200
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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
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As production volume increases within the relevant range, fixed cost per unit:
A.
Decreases
B.
Increases
C.
Stays the same
D.
Becomes zero
Correct answer is:
A. Decreases
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An adverse opinion is issued when the effects of misstatements are:
A.
Material but not pervasive
B.
Trivial and isolated
C.
Both material and pervasive
D.
Related only to disclosures of no importance
Correct answer is:
C. Both material and pervasive
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Under Article 80 of the Constitution of Pakistan, the Federal Government is required to:
A.
Print currency notes
B.
Cause to be laid before the National Assembly a statement of estimated receipts and expenditure for each financial year (annual budget statement)
C.
Appoint provincial governors
D.
Hold national elections
Correct answer is:
B. Cause to be laid before the National Assembly a statement of estimated receipts and expenditure for each financial year (annual budget statement)
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Actual price is Rs. 12, standard price is Rs. 10 and 500 units were purchased. The material price variance is:
A.
Rs. 1,000 adverse
B.
Rs. 1,000 favorable
C.
Rs. 5,000 adverse
D.
Rs. 600 adverse
Correct answer is:
A. Rs. 1,000 adverse
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