An auditor's primary responsibility is to: MCQ with Answer and Explanation

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An auditor's primary responsibility is to:

A. Express an opinion on the financial statements

B. Prepare financial statements

C. Compute tax liability

D. Detect all frauds

Answer: Option A

Solution (By JKExamLibrary)

Auditor examines the financial statements and provides an opinion whether they give a true and fair view.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

The 'Accounting Policy Changes' are applied:

A. Prospectively

B. Retrospectively, unless impracticable

C. Arbitrarily

D. Only with government approval

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Correct Answer: Option B

Explanation:
Ind AS 8 requires retrospective application of changes in accounting policies.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

If a trial balance does not tally, the difference is put to:

A. Capital account

B. Drawings account

C. Suspense account

D. Profit and Loss account

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Correct Answer: Option C

Explanation:
A suspense account is opened temporarily to make the trial balance agree pending detection of errors.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

The 'Composition Scheme' under GST is not available to:

A. Traders

B. Restaurants not serving alcohol

C. Manufacturers

D. Service providers (except restaurant) with aggregate turnover above ₹50 lakh

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Correct Answer: Option D

Explanation:
Composition scheme for services is restricted to certain categories with turnover up to ₹50 lakh.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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