Correct Answer:
B. Random selection and use of probability theory to evaluate results
Statistical sampling uses random selection and probability theory to measure sampling risk.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Statistical sampling is characterized by:
Related MCQs
A flexible budget is a budget that:
A.
Never changes
B.
Includes only fixed costs
C.
Is adjusted to the actual level of activity achieved
D.
Is prepared without forecasting
Correct answer is:
C. Is adjusted to the actual level of activity achieved
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Vouching, which starts from the accounting records and traces back to supporting documents, is mainly used to test for:
A.
Overstatement (occurrence/existence)
B.
Understatement (completeness)
C.
Classification of liabilities
D.
Going concern doubts
Correct answer is:
A. Overstatement (occurrence/existence)
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Under the ISAs, analytical procedures are required to be performed at which stages of the audit?
A.
Only when fraud is suspected
B.
Only during the interim visit
C.
Risk assessment and the overall review near the end of the audit
D.
Only for listed companies
Correct answer is:
C. Risk assessment and the overall review near the end of the audit
Do you agree with this answer?
The Public Procurement Regulatory Authority (PPRA) in Pakistan is responsible for:
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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Drawings made by the owner of a sole proprietorship:
A.
Reduce the owner's equity (capital)
B.
Increase the owner's equity
C.
Are recorded as business expenses
D.
Are recorded as revenue
Correct answer is:
A. Reduce the owner's equity (capital)
Do you agree with this answer?
The Federal Consolidated Fund of Pakistan is established under:
A.
Article 78 of the Constitution
B.
Article 62 of the Constitution
C.
Article 100 of the Constitution
D.
Article 184 of the Constitution
Correct answer is:
A. Article 78 of the Constitution
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