An auditor checking the arithmetical accuracy of the books performs what kind of check? MCQ with Answer and Explanation
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Question #1
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S1: Vouching is the examination of documentary evidence. S2: Verification is the proof of ownership, existence, and valuation of assets. Which statement(s) is/are correct?
Correct Answer: Option C
Explanation:
Vouching involves checking vouchers to verify the authenticity of transactions. Verification goes beyond vouching to confirm the physical existence, legal ownership, and proper valuation of assets and liabilities at the balance sheet date. Both are correct.
Vouching involves checking vouchers to verify the authenticity of transactions. Verification goes beyond vouching to confirm the physical existence, legal ownership, and proper valuation of assets and liabilities at the balance sheet date. Both are correct.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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When analyzing financial statements, the 'Window Dressing' practice refers to:
Correct Answer: Option A
Explanation:
Window dressing involves accounting tricks (like delaying expense recording) to make financial statements look stronger to investors.
Window dressing involves accounting tricks (like delaying expense recording) to make financial statements look stronger to investors.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The 'Related Party Disclosures' (Ind AS 24) requires disclosure of:
Correct Answer: Option A
Explanation:
Ind AS 24 requires comprehensive disclosures.
Ind AS 24 requires comprehensive disclosures.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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