The audit report is addressed to: MCQ with Answer and Explanation

The audit report is addressed to:
A. Board of directors
B. Government
C. Shareholders
D. Management
Answer: Option C
Solution (By JKSSB Mock Tests)
The auditor's report is addressed to the members (shareholders) of the company.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
If a purchase of ₹5,000 is posted as ₹500 in the ledger, it is an error of:
A. Principle
B. Commission
C. Omission
D. Compensating

Correct Answer: Option B


Explanation:
Error of commission is when a wrong amount is posted to the correct account.

Question #2
A 'Voucher' that records non-cash transactions is called:
A. Receipt voucher
B. Transfer voucher (Journal voucher)
C. Cash voucher
D. Bank voucher

Correct Answer: Option B


Explanation:
Non-cash transactions like depreciation, credit sales are recorded via transfer vouchers or journal vouchers.

Question #3
Which of the following is a 'Cash Equivalent'?
A. Inventory
B. Short-term, highly liquid investments with maturity 3 months or less
C. Bank deposits with maturity more than 12 months
D. Debtors

Correct Answer: Option B


Explanation:
Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.