The 'Independence' of an auditor is required because: MCQ with Answer and Explanation

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The 'Independence' of an auditor is required because:

A. To reduce fees

B. To increase revenue

C. To comply with company law only

D. To maintain objectivity and impartiality in the audit opinion

Answer: Option D

Solution (By JKSSB Mock Tests)

Independence ensures unbiased opinion.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

The 'Traditional Approach' classifies accounts into:

A. Assets, liabilities, equity

B. Real, personal, nominal

C. Income, expenses, assets

D. Current and non-current

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Correct Answer: Option B

Explanation:
Under traditional British approach, accounts are classified as personal, real, and nominal.

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Question #2

The 'GST Refund' for unutilised ITC due to inverted duty structure is available for:

A. All zero-rated supplies

B. All goods

C. Goods where input tax rate is higher than output tax rate, subject to certain exclusions

D. Services

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Correct Answer: Option C

Explanation:
Refund of accumulated ITC due to inverted rate structure is allowed for goods, with some exceptions.

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

Question #3

In the Indian Financial System, Treasury Bills (T-Bills) are issued by:

A. State Governments

B. RBI on behalf of the Central Government

C. SEBI

D. Commercial Banks

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Correct Answer: Option B

Explanation:
T-Bills are short-term debt instruments issued by the Reserve Bank of India on behalf of the Government of India to meet short-term liquidity needs.

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

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