Correct Answer:
A. An intentional act involving deception
Fraud is intentional; error is unintentional.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
The key difference between fraud and error is that fraud is:
Related MCQs
Surrender of savings means that:
A.
Funds are spent quickly at year end
B.
Departments keep unspent money for the next year
C.
Unspent funds that will not be needed are returned to the government before the end of the fiscal year
D.
Savings are invested in bonds
Correct answer is:
C. Unspent funds that will not be needed are returned to the government before the end of the fiscal year
Do you agree with this answer?
Pakistan Investment Bonds (PIBs) are:
A.
Short-term overnight instruments
B.
Shares of the State Bank
C.
Foreign currency notes
D.
Medium to long-term government debt securities
Correct answer is:
D. Medium to long-term government debt securities
Do you agree with this answer?
Which of the following is an intangible asset?
A.
A delivery van
B.
A patent
C.
Inventory
D.
Accounts receivable
Correct answer is:
B. A patent
Do you agree with this answer?
The benefit principle of taxation says that:
A.
Taxes should depend only on income
B.
Taxes should be equal for everyone
C.
Taxes should be paid according to the benefits received from government services
D.
Taxes should be avoided
Correct answer is:
C. Taxes should be paid according to the benefits received from government services
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Subsequent events are events occurring:
A.
Before the beginning of the financial year
B.
Only after the AGM
C.
During the interim audit only
D.
Between the date of the financial statements and the date of the auditor's report
Correct answer is:
D. Between the date of the financial statements and the date of the auditor's report
Do you agree with this answer?
Control risk is the risk that a material misstatement:
A.
Will not be detected by the auditor's procedures
B.
Occurs because of changes in tax law
C.
Occurs only in cash transactions
D.
Will not be prevented or detected on a timely basis by the entity's internal control
Correct answer is:
D. Will not be prevented or detected on a timely basis by the entity's internal control
Do you agree with this answer?
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