Correct Answer:
B. The auditor's conclusion based on a sample may differ from the conclusion if the whole population were tested
Sampling risk arises because only part of the population is examined.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Sampling risk is the risk that:
Related MCQs
Diversification can eliminate:
A.
Unsystematic (specific) risk
B.
Systematic risk
C.
Inflation risk of the whole economy
D.
Market risk entirely
Correct answer is:
A. Unsystematic (specific) risk
Do you agree with this answer?
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?
A stock split:
A.
Reduces the number of shares
B.
Raises new capital
C.
Distributes cash to shareholders
D.
Increases the number of shares and reduces the price per share without changing total equity
Correct answer is:
D. Increases the number of shares and reduces the price per share without changing total equity
Do you agree with this answer?
Under IAS 37, a provision is recognized when:
A.
There is a present obligation from a past event, an outflow is probable and a reliable estimate can be made
B.
A future loss is merely possible
C.
The management plans to spend money someday
D.
The auditor requires it
Correct answer is:
A. There is a present obligation from a past event, an outflow is probable and a reliable estimate can be made
Do you agree with this answer?
Fiscal policy is the use of:
A.
Interest rates and money supply by the central bank
B.
Exchange rate controls only
C.
Government spending and taxation to influence the economy
D.
Foreign aid only
Correct answer is:
C. Government spending and taxation to influence the economy
Do you agree with this answer?
The Departmental Accounts Committee (DAC) meeting is held to:
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
Do you agree with this answer?
Leave a Reply