S1: Internal check is a system of routine checks. S2: Internal check is conducted by external auditors. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: Internal check is a system of routine checks. S2: Internal check is conducted by external auditors. Which statement(s) is/are correct?
A. S2 only
B. Both S1 and S2
C. Neither S1 nor S2
D. S1 only
Answer: Option D
Solution (By JKExamLibrary)
Internal check is a routine system where the work of one employee is automatically checked by another to prevent errors and frauds. It is an internal management function, not conducted by external auditors. S1 is correct, S2 is incorrect.
Explanation:
The Going Concern concept assumes that the enterprise will continue its operations for the foreseeable future with no intention to liquidate.
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