S1: Audit is an independent examination of financial information. S2: Audit is conducted to express an opinion on the financial statements. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: Audit is an independent examination of financial information. S2: Audit is conducted to express an opinion on the financial statements. Which statement(s) is/are correct?
A. S1 only
B. Neither S1 nor S2
C. S2 only
D. Both S1 and S2
Answer: Option D
Solution (By JKSSB Mock Tests)
Audit is an independent, objective examination of financial statements and related data. The primary objective is to express an opinion on whether they present a true and fair view. Both statements are correct.
Explanation:
Selling goods on credit increases current assets (debtors) without affecting current liabilities, thereby increasing a current ratio that is already greater than 1.
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